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    • Maestairs
    • By Maestairs 7th Oct 17, 7:47 PM
    • 2Posts
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    Maestairs
    Beneficiary asking for payment to be made to a different account
    • #1
    • 7th Oct 17, 7:47 PM
    Beneficiary asking for payment to be made to a different account 7th Oct 17 at 7:47 PM
    We are about to distribute the proceeds of an estate . The accounts are finalised , probate sorted .However a few of the beneficiaries have requested that payment is made with a cheque to a person other than themselves . I have not enquired as to why they want this . Are we acting illegally if we pay money to a beneficiary and get them to sign receipt for that payment but the payee is not them , after all we could simply pay them in cash if they did not have an account?
Page 1
    • sammyjammy
    • By sammyjammy 7th Oct 17, 7:55 PM
    • 4,236 Posts
    • 4,585 Thanks
    sammyjammy
    • #2
    • 7th Oct 17, 7:55 PM
    • #2
    • 7th Oct 17, 7:55 PM
    Could it be a benefits issue?
    "You've been reading SOS when it's just your clock reading 5:05 "
    • Yorkshireman99
    • By Yorkshireman99 7th Oct 17, 8:21 PM
    • 3,371 Posts
    • 2,734 Thanks
    Yorkshireman99
    • #3
    • 7th Oct 17, 8:21 PM
    • #3
    • 7th Oct 17, 8:21 PM
    We are about to distribute the proceeds of an estate . The accounts are finalised , probate sorted .However a few of the beneficiaries have requested that payment is made with a cheque to a person other than themselves . I have not enquired as to why they want this . Are we acting illegally if we pay money to a beneficiary and get them to sign receipt for that payment but the payee is not them , after all we could simply pay them in cash if they did not have an account?
    Originally posted by Maestairs
    Sounds like an attempt to fiddle something. Just give them a cheque, not cash, payable to themselves. Doing as they ask could be seen as money laundering.
    • badmemory
    • By badmemory 7th Oct 17, 8:54 PM
    • 1,052 Posts
    • 1,113 Thanks
    badmemory
    • #4
    • 7th Oct 17, 8:54 PM
    • #4
    • 7th Oct 17, 8:54 PM
    We are about to distribute the proceeds of an estate . The accounts are finalised , probate sorted .However a few of the beneficiaries have requested that payment is made with a cheque to a person other than themselves . I have not enquired as to why they want this . Are we acting illegally if we pay money to a beneficiary and get them to sign receipt for that payment but the payee is not them , after all we could simply pay them in cash if they did not have an account?
    Originally posted by Maestairs
    If you read what you have written as if a stranger had written it what would YOU think? My initial instinct said dodgy, I'm prepared to bet your's did too. Added to which making payments to someone not a beneficiary could be considered as fraud, receipt or no receipt.
    • Margot123
    • By Margot123 8th Oct 17, 8:24 AM
    • 297 Posts
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    Margot123
    • #5
    • 8th Oct 17, 8:24 AM
    • #5
    • 8th Oct 17, 8:24 AM
    This is something I have come up against as well. My solicitor advised me to only issue cheques, and to make them payable to the beneficiary as per their name stated on the will. If there are any issues with that, then it is their problem to sort, not yours.
    You need to be very careful in complying with odd requests from beneficiaries. Always protect yourself by following the letter of the Law.
    • Maestairs
    • By Maestairs 8th Oct 17, 8:37 AM
    • 2 Posts
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    Maestairs
    • #6
    • 8th Oct 17, 8:37 AM
    • #6
    • 8th Oct 17, 8:37 AM
    Thanks all , will call solicitor to verify options . Not sure how to give individual thanks on this forum
    • Margot123
    • By Margot123 8th Oct 17, 8:50 AM
    • 297 Posts
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    Margot123
    • #7
    • 8th Oct 17, 8:50 AM
    • #7
    • 8th Oct 17, 8:50 AM
    The role of executor isn't as easy as people assume. You need to distance yourself from family connections whilst administering the estate. It is a very difficult thing to do but you need to do it.
    Never concern yourself with 'helping out X, Y & Z' by giving money to third parties. The risk of slightly upsetting a beneficiary, by doing things correctly, is better than you being sued by them at a later date for an inheritance they say they never received!
    Sorry to be so straight-talking and abrupt but I am speaking from experience.
    • Yorkshireman99
    • By Yorkshireman99 8th Oct 17, 9:27 AM
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    Yorkshireman99
    • #8
    • 8th Oct 17, 9:27 AM
    • #8
    • 8th Oct 17, 9:27 AM
    Thanks all , will call solicitor to verify options . Not sure how to give individual thanks on this forum
    Originally posted by Maestairs
    There really are no options! As executor your legal responsibility is to distribute the estate according to the will without any bias. By all means make a quick call to the solicitor as I would not expect you to act just on the basis of advice from here.
    • konark
    • By konark 9th Oct 17, 2:01 AM
    • 927 Posts
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    konark
    • #9
    • 9th Oct 17, 2:01 AM
    • #9
    • 9th Oct 17, 2:01 AM
    What sort of sums are we talking about?

    The beneficiaries could always do a 'Deed of Variation' to give their share to someone else.
    • unforeseen
    • By unforeseen 9th Oct 17, 6:51 AM
    • 1,975 Posts
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    unforeseen
    What sort of sums are we talking about?

    The beneficiaries could always do a 'Deed of Variation' to give their share to someone else.
    Originally posted by konark
    But that would still affect their benefits if, as appears, that is the reason for originally asking for payment to a different person
    • Yorkshireman99
    • By Yorkshireman99 9th Oct 17, 7:31 AM
    • 3,371 Posts
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    Yorkshireman99
    But that would still affect their benefits if, as appears, that is the reason for originally asking for payment to a different person
    Originally posted by unforeseen
    I suspect that many think they can avoid benefits consequences by having it paid to somone else.
    • Margot123
    • By Margot123 9th Oct 17, 8:48 AM
    • 297 Posts
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    Margot123
    Some benefits aren't affected by temporary balances. These include inheritances being used to fund the buying of a house to live in, adaptations to an existing (or future) property for disabled people etc. I think the time limit is 6 months, or 12 months for those over State Pension age.
    • Yorkshireman99
    • By Yorkshireman99 9th Oct 17, 12:59 PM
    • 3,371 Posts
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    Yorkshireman99
    Some benefits aren't affected by temporary balances. These include inheritances being used to fund the buying of a house to live in, adaptations to an existing (or future) property for disabled people etc. I think the time limit is 6 months, or 12 months for those over State Pension age.
    Originally posted by Margot123
    Cetainly it is means tested benefits that can be affected. However, the claimant has to be open about any legacy that might affect the benefit. Diverting it elsewhere is likely to raise questions about their claim.
    • konark
    • By konark 11th Oct 17, 12:52 AM
    • 927 Posts
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    konark
    We are only assumung they are up to something dodgy' they may just not have a bank account, or live in a place where all the banks have closed, or bank online. The OP asked if it was illegal to give them a cheque for someone else, and the answer is no, as long as the executor gets a signed receipt for the money it's none of their business what the beneficiary does with their legacy..
    • Not a clue
    • By Not a clue 11th Oct 17, 1:15 AM
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    • 5 Thanks
    Not a clue
    Have you done a bankruptcy/IVA check on them. They could be trying to avoid the cash going to creditors/being grabbed for an unauthorised overdraft/to avoid a spouse getting hold of it in a divorce etc. You could be personally liable for it if do not act properly in checking for bankruptcy etc.

    I would be quite suspicious, though it could be for an innocent reason. Protect your back though.
    • Malthusian
    • By Malthusian 11th Oct 17, 10:23 AM
    • 3,443 Posts
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    Malthusian
    We are only assumung they are up to something dodgy' they may just not have a bank account, or live in a place where all the banks have closed, or bank online.
    Originally posted by konark
    I struggle to think of any reason for not having a bank account that isn't dodgy.

    If you've spent your life living cash in hand and never needed a bank account, and you've inherited a significant amount of money, now you do.

    If they have an online banking account and don't live near a bank they can post the cheque to their branch.
    • Margot123
    • By Margot123 12th Oct 17, 8:39 AM
    • 297 Posts
    • 259 Thanks
    Margot123
    Although as a layperson, you will only be expected to check the Bankruptcy register as other systems are not always publicly available.
    Last edited by MSE ForumTeam3; 17-10-2017 at 8:35 AM. Reason: Quoting deleted post
    • sammy1234567
    • By sammy1234567 19th Oct 17, 8:34 AM
    • 55 Posts
    • 19 Thanks
    sammy1234567
    margot123, I was interested to read that your solicitor said only to pay beneficiaries by cheque.
    Is bank transfer not an acceptable way to pay a beneficiary their inheritance?
    Also, did your solicitor say you had to (try to) get a receipt signed by the beneficiary?
    I am about to pay out a legacy.
    Thanks.
    • unforeseen
    • By unforeseen 19th Oct 17, 8:42 AM
    • 1,975 Posts
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    unforeseen
    I would think one reason not to pay by bank transfer is to prevent what the OP was originally asking.

    If somebody gives you bank details then there is no guarantee that it is their account.

    However if you know the beneficiary well and are fairly sure that they are not trying a fiddle then there is no problem
    • silvercar
    • By silvercar 19th Oct 17, 8:49 AM
    • 36,200 Posts
    • 152,991 Thanks
    silvercar
    I struggle to think of any reason for not having a bank account that isn't dodgy.
    It may be that their bank account is in overdraft, or breached an overdraft limit, and they want to spend their inheritance not use it to clear debt. Or that they want to hide the inheritance from someone who has access to that account. Plenty of innocent explanations, but dodgy ones too.
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