26Power of trustee company to distribute assets without regard to claims of creditors after notice and failure of creditors to take proceedings

26 Power of trustee company to distribute assets without regard to claims of creditors after notice and failure of creditors to take proceedings

(1)  When a trustee company refuses to recognize, in whole or in part, the claim of a person who claims to be a creditor against the estate of a deceased person, the trustee company may give notice in writing of its refusal to the person so claiming.

(2)  If the person so claiming does not, within 3 months after the receipt of a notice under subsection (1) , institute proceedings to enforce his claim the trustee company may distribute the assets of the deceased person without regard to the claim or to so much thereof as the trustee company has, by that notice, refused to recognize, and thereupon the right of that person to recover the amount of the claim, or the part thereof that the trustee company has refused to recognize, is barred.

(3)  A notice under this section may be served by registered post on the person for whom it is intended.