Conflict of interest query
Comments
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Thank you.
Yes .....recipient is paying NI and a small amount of income tax (11500 personal allowance)
we believe this has all been arranged as matter of convenience for two of the 4 executors (one of whom lives in America). All rather unsatisfactory.
She should probably stand down as she is limited in involvement that far away.
all other executors and beneficiaries are in UK
we don't really want to go legal rather try convince them the error of their ways0 -
Malthusian wrote: »It's not entirely clear whether there is still a going concern with the owner dead, or just some cars, land and fishing equipment which without the owner are worth no more than the sum of their parts. If the former, the executors have to make sure it is run competently as a going concern - at least until it is sold - to preserve its value for the sake of all the beneficiaries.
The OP says there are professional accountants but doing the books and the annual audit is not the same as running a business. If they were hired to act as administrators (if that is the right word when the business is rudderless but not insolvent) then I would expect them to charge considerably more than £300 a week
If one of the two employees was the Finance Director or other second-in-command then I would expect them to be able to take over the running and winding up of the business, and it's dubious as to what the £300 per week paid to the partner is meant to achieve.
If on the other hand both employees are secretaries, then winding up a business is not something you would typically do for a secretary's salary.
Thanks. yes its a going concern at present but its being wound up and then sold with vacant possession0 -
No need to go hard legal as yet but setting out your position politely, but firmly, in writing, to all the executors may work. Don't threaten but be quite firm. In particular state that lay executors are not allowed to be paid.0
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Malthusian wrote: »It's not entirely clear whether there is still a going concern with the owner dead, or just some cars, land and fishing equipment which without the owner are worth no more than the sum of their parts. If the former, the executors have to make sure it is run competently as a going concern - at least until it is sold - to preserve its value for the sake of all the beneficiaries.
The OP says there are professional accountants but doing the books and the annual audit is not the same as running a business. If they were hired to act as administrators (if that is the right word when the business is rudderless but not insolvent) then I would expect them to charge considerably more than £300 a week.
If one of the two employees was the Finance Director or other second-in-command then I would expect them to be able to take over the running and winding up of the business, and it's dubious as to what the £300 per week paid to the partner is meant to achieve.
If on the other hand both employees are secretaries, then winding up a business is not something you would typically do for a secretary's salary.
thanks.meant to add...
re the two employees - one is general manager. oversees and pretty much runs everything.
the second - is general labourer. does feeding cleaning and some transport duty.
the ex partner rather assumes the mantle but other than ordering some consumables , tends to not contribute very much. Difficult situation really .
Unfortunately, the General manager and my brothers ex partner do not see eye to eye.0 -
maximumgardener wrote: »the ex partner rather assumes the mantle but other than ordering some consumables , tends to not contribute very much. Difficult situation really .
Unfortunately, the General manager and my brothers ex partner do not see eye to eye.
This IMO makes doing nothing not an option. From the sound of it the general manager should have been left to get on with it, possibly with the help of the accountants, to value and sell the business. Not only is the £300 per week paid to the partner superfluous, but it may damage the value of the estate's investment if the general manager decides to walk away or their disagreement otherwise harms the business.
Agreed that a letter to both executors pointing out that for the partner's own sake, it would be better to avoid any appearance of charging fees she is not allowed to charge, and to preserve the value of the business by leaving it in experienced hands, would be in order. Since the money in the business will come to her eventually anyway, this is in her interests as well. (There is no need to mention that for every £ she takes out of the business as a fee she only takes 22p out of her inheritance, it's beside the point.) If she needs money to live on she doesn't need to risk breaking the law to get it.0 -
Malthusian wrote: »This IMO makes doing nothing not an option. From the sound of it the general manager should have been left to get on with it, possibly with the help of the accountants, to value and sell the business. Not only is the £300 per week paid to the partner superfluous, but it may damage the value of the estate's investment if the general manager decides to walk away or their disagreement otherwise harms the business.
Agreed that a letter to both executors pointing out that for the partner's own sake, it would be better to avoid any appearance of charging fees she is not allowed to charge, and to preserve the value of the business by leaving it in experienced hands, would be in order. Since the money in the business will come to her eventually anyway, this is in her interests as well. (There is no need to mention that for every £ she takes out of the business as a fee she only takes 22p out of her inheritance, it's beside the point.) If she needs money to live on she doesn't need to risk breaking the law to get it.
Thanks.
yes . agreed 100%.
its very important to keep the General manager onside. he is very supportive of the family and loyal . he stands to gain 40000 and the other employee 10000 when everything completed (redundancy) . valuations all completed so business side well advanced
land is about 550000
house 250000
fish farm tanks & all equipment 150000
main unknown is departure plan of the ex partner but we believe solicitors now pushing for answers from her as probate seems imminent0 -
Surely if the business was a going concern then your late brother was taking out more than £300 and therefore the business accounts should be in a better state than they were before, so she is probably not reducing anyones actual inheritance. As his ex sister maybe you should just spend a moment wondering why your oldest sibling living abroad was made executor and not a UK based sibling, which is what most of us would do to make things simpler. Also a cousin & a niece. That would seem to be an unusual arrangement in view of all the siblings which would not be anyones first thought. Have you considered that this payment may have been discussed with the other executors by your late brother and that they are fulfilling his wishes for his (not ex) partner.0
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Whatever the deceased's intent in the absence of instructions to that in a will then they have no relevance. It is not the executor(s) function to deal with such a situation by not administrating the estate lawfully.0
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no idea of the demand for a fish farms but is the place not worth more as a business rather than asset stripped.
The will would need some very specific clauses to stop the place being sold to the same entity along with the goodwill.
Might not make the general manager and assistant happy as they would get TUPE to the new owner.
point is you are quibbling over a few £100 a week when there could be £10,000s being thrown away.0 -
getmore4less wrote: »no idea of the demand for a fish farms but is the place not worth more as a business rather than asset stripped.
The will would need some very specific clauses to stop the place being sold to the same entity along with the goodwill.
Might not make the general manager and assistant happy as they would get TUPE to the new owner.
point is you are quibbling over a few £100 a week when there could be £10,000s being thrown away.
the will states my late brothers estate to be sold . it will be sold as a going concern rather than piecemeal. The only items which will be sold separately will be the vehicles.
My niece (executor) is the only family member who may be mildly interested as she worked there a lot as a student and went on to study aquaculture. to be honest though she now has other family interests and has a good job in London in Marine equipment sales. Fish farming not for her.
My main concern here is that the will is discharged according to our late brothers wishes.
he certainly did not express any wish in writing that we are aware of in terms of the payment which is being made. My view is that executors having "agreed" this payment is not consistent with the distribution in the will.0
This discussion has been closed.
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