Executor of estate = Bank - can I change .....

pierrelejohn

Hi
3 weeks ago my father passed away leaving an estate of about £600,000 (most of this is in joint names with my mum house, savings etc)

My father always had Lloyds bank looking after all his money who invested it on his behalf.

My father made Lloyds bank executors of the estate - named in his will.

Last week, a few days before the funeral one of Lloyds managers came out to see my mother and I and told us that the fee was going to be 3.5% which was approximatly £4000.

The lady collected a load of certificates from us to get ready to start administering the estate, probate etc.

Since that meeting I have found out lots of things about banks and the extortinate prices they charge, and I know that I could have got it cheaper.
however at the time I thought that as the bank was named executors they were the ones who had to do it, and didn't have to stand down.

Lloyds bank should find dealing with all the estate really easy as they managed all my fathers shares, savings etc, and knew what his portfolio consisted of.


1 week on, Im beginning to question their right to act.

Does anyone know if I can stop them acting as executors once they have started, I don't remember my mum or I signing anything, but at the time it was all so fuzzy due to the death of my father, that I can't be sure.

Can anyone advise on this situation, do I have to keep with them now they have started ?

The whole point of making the bank executors was so my mum wouldn't be stressed, but she is getting that way when she sees how much they are charging.

Any advice greatly received

Mojisola

If your father named them as executors in his will, they have the right to act. It's very unlikely that they will give up the right as it's a nice earner for them.

meritaten

you have no say in it, unless as beneficiaries, you believe the executors to be acting unlawfully. your father chose the bank to be executors and its HIS wishes which are taken into account - not yours.
you think you could do a better job - but your father didnt think so and its HIS will.

thistledome

pierrelejohn wrote: »

Last week, a few days before the funeral one of Lloyds managers came out to see my mother and I and told us that the fee was going to be 3.5% which was approximatly £4000.

What is the £4000 3.5% of?

It's not 3.5% of £600k.

£4000 for an estate of that size seems quite reasonable to me. I've heard of Solicitors charging frightening amounts to execute a will and in one case they charged so much that the beneficiaries didn't get anything at all, Solicitors took the lot! (It was a very small estate though, about £40,000 in total.)

Someone asked the same question here, and it seems the Executor can be changed, but only on specific grounds:

http://www.therevcounter.com/general-mayhem/14995-can-you-change-executor-will-after-death-2.html

OP, it might be worth having a word with a CAB if there's one near you, or a friendly Solictor (although that usually means more ££££'s gone). Best of luck.

Mojisola

thistledome wrote: »

What is the £4000 3.5% of?

It's not 3.5% of £600k.

£4000 for an estate of that size seems quite reasonable to me.

I, too, think this is too low for the final bill.

pierrelejohn - I would check with the solicitors again because I think they will be taking much more than this.

SailorSam

When my Mum was writing her Will she was putting my Sister and I as executers and the solicitor suggested that she should name a third independent person (them) and we agreed not realizing at the time what it was going to cost.
When my Mum died i went to the solicitors and said it wasn't really what she'd wanted until they said it was a good idea, i asked could it be changed. I think we were very lucky, for the price of a letter they gave up their rights. But i don't think they had to.

AndrewSmith

This is why you should never allow a bank to write your will. They tempt you in with a free or very cheap will only to sting the estate with such fees for executorial duties and probate.

I'd be very surprised if the final bill was the amount you say. I'd expect it to be at least three times this amount. Also the bank will be in control of the funds and will ensure they make the most use of it while they are 'administering the estate'.

Are they also dealing with probate? If so expect an even bigger bill.

RAS

pierrelejohn wrote: »

Hi
3 weeks ago my father passed away leaving an estate of about £600,000 (most of this is in joint names with my mum house, savings etc)

As a basic starting point, you need to realise that anything owned jointly and severally with mum (house, savings) is NOT part of the estate and that it now belongs to her as the sole survivor.

Therefore everything that was in joint ownership needs to be excluded from the value used to assess IHT and the bank's fees.

pierrelejohn

As a basic starting point, you need to realise that anything owned jointly and severally with mum (house, savings) is NOT part of the estate and that it now belongs to her as the sole survivor.

Therefore everything that was in joint ownership needs to be excluded from the value used to assess IHT and the bank's fees.

That explains something.

I have been told that although the estate is around £600k the banks fees were to be 3.5% and the fee quoted was between £3 - £4K

I was told to check their figures, but as you say if the bank only charge on HIS assets (around £80k of stocks and shares) not on the JOINT ASSETS then this figure is about correct.

I guess the moral of the story is get as much into joint accounts, then it will pass automatically to the spouse (and not use a bank)

Gavin83

If a bank/solicitor is listed as a 3rd executor alongside 2 relatives will they still charge their fees at the time the will is executed?

neverdespairgirl

AndrewSmith wrote: »

This is why you should never allow a bank to write your will. They tempt you in with a free or very cheap will only to sting the estate with such fees for executorial duties and probate.

The exception is when they (banks) do it for free, then it's very handy.

My grandparents' wills were both sorted by their bank, for free, because my Grandad worked for the bank, and it was a sort of perk. It worked out very well, because they are pretty efficient at it, if expensive.