Disburement of proceeds of a will

finowen

We are equal beneficiaries of our Dad's will. All monies are in the executors account (a sibling).
When can the proceeds be disbursed? Is there a formal process to complete before release or can most of it be disbursed in advance? I would like to get my share into a savings account ASAP and I don't see why it it is not yet released. My executor sibling is being advised by the bank that this is not normal but the bank has the money and is paying us a pitiful interest rate.
What do we have to wait for?

MrRedundant

It entirely depends I am afraid.

What is the value of the will.It sounds like probate is required before the money will be released.

I suspect you need some legal advice or to post all the details to get detailed advice.

finowen

Thank.

The value is below £325K and probate was granted in October. I really don't know how long it takes to "complete". My sibling is following the bank's advise as the money is in his executor account. I wondered what the "legal" steps are to finalise probate. The last issue we know of is the tax refunds from the investments. There is only one reply now outstanding so I wonder what else is needed to conclude probate.

MrRedundant

It certainly sounds complete enough to me to start disbursing the funds. The final refunds can be disbursed latter. I suspect up lies in some T&C the bank have.

Your sibling needs to really chase it.

finowen

Thanks again Mr Redundant (me too recently),

We will each receive ~£100K which is why I want to get the money to invest (as I now need it being redundant) and/or use. Is there a limit on the value or % of my share that can be released in advance?

I think the bank are happy to retain the money as they are only paying interest on the first £7K (Lloyds TSB Classic account).

Whatdo

Is the sibling sole executor? It sounds as if the bank is named as well

..

finowen

Thanks,

I will ask but I think that he is sole executor. I'll find out.

Mikeyorks

If the money is in an 'executor' account ...... that's a sure bet Probate has been granted. As Banks will rarely open an Executor account until they have sight of the Probate documents. Having said that ...... a Lloyds TSB Vantage account doesn't strike me as an 'executor' account! Rather sounds as though the executor is pushing the funds through an existing personal account ...... which can be a trifle naughty.

However. There's no reason whatsoever, having gained Probate, why the Executor cannot make interim disbursements. Most executor accounts pay little or no interest and the Executor is failing in their duty to the beneficiaries by holding funds there unnecessarily. S/he should retain sufficient funds to cover expected debts + contingency. But release funds promptly which exceed that value.

dzug1

Many solicitors and banks advise waiting 6 months before making disbursements, having advertised for debts, etc. It's a bit ultra cautious, but it protects them from claims after the estate has been paid out.

There's no legal necessity for it though. You can finalise an estate once you are confident you have all the details - and you can make interim payments before that.

Beneficiaries have no claim on the executor until at least a year is up though.

finowen

The bank advised my brother which account to open and it is a separate account and not his own. He is definitely being led by the bank as he is not wise about these things.
There is something else I have just remembered which is that the bank has suggested creating a codicil to the will to include a trust clause for IHT protection. Could this delay the release of funds?

I'm sure that there is no other issue I don't know of and would welcome any more comments on this to then take to my brother.

dzug1

finowen wrote: »

There is something else I have just remembered which is that the bank has suggested creating a codicil to the will to include a trust clause for IHT protection. Could this delay the release of funds?

Yes it could - but it seems totally unnecessary, as the estate is under the IHT limit.

Depending on what they mean it could be that you will never see the money - just receive an income from it.