Interim Payments

In_a_spin

Hope some one can help.

I am executor of my Father's estate and we are coming to the point of being able to pay out to the beneficiaries.

I have been asked if it is possible to pay an interim payment and then hold on to the rest of the inheritance for one of the beneficiaries as they want to use it as a deposit for buying a property.

They do not claim any benefits.

Is this possible and also legal?

CaptainAmerica

As long as all the liabilities and tax (if any) has been settled then there is no reason why an interim payment cannot be considered to a beneficiary


It is perfectly legal to make interim payments.

nom_de_plume

In_a_spin wrote: »

Hope some one can help.

I am executor of my Father's estate and we are coming to the point of being able to pay out to the beneficiaries.

I have been asked if it is possible to pay an interim payment and then hold on to the rest of the inheritance for one of the beneficiaries as they want to use it as a deposit for buying a property.

They do not claim any benefits.

Is this possible and also legal?

Your post is a little confusing, particularly the bold area.

An interim payment, in my understanding, would be to pay all the beneficiaries, for example, 75% of their eventual bequest with the rest to follow at a later date. Can you clarify what you mean by 'the rest of the inheritance for one of the beneficiaries'? Is this person getting the residual?

dzug1

Not a problem - quite legal.

Only slight worries that may not apply in your case:

if you inadvertently overpay it's you who will be responsible for recovering the excess or covering it yourself

if the other beneficiaries are nit pickers they may start muttering about interest

In_a_spin

Sorry for the confusion.

There are a set percentage of the estate for the grandchildren some of who are minors and the residual to be split three ways.

All debts, taxes etc have been paid.

It is one of the residual beneficiaries who would like part of their money left in the executors account until they are ready to buy a property.

madbadrob

In_a_spin wrote: »

Sorry for the confusion.

There are a set percentage of the estate for the grandchildren some of who are minors and the residual to be split three ways.

All debts, taxes etc have been paid.

It is one of the residual beneficiaries who would like part of their money left in the executors account until they are ready to buy a property.

Personally I would have them set up their own account and let them have the money in one go because you are liable for that money till its paid out. There is nothing to stop you doing this if you so wish but I wouldnt myself

Rob

jackyann

We have certainly made interim payments and it caused no difficulties. However, I do find it a little odd that you want to "hold on to the money" for a house deposit. Is there a reason that you can't just hand over the money to be put in a savings account? It's usually the other way round: some needs the house deposit money now, not in 6 months' time.

What you need to be certain of when making interim payments is that you don't "overpay" someone. Eg;
House worth £100k, savings of £50k, to be divided 5 ways. You would be unwise to give one person £30k as you don't know exactly what the house will sell for and what expenses may be incurred along the way. You could give everyone say, £8-9k, leaving some to deal with expenses. You could, if there is agreement, give one person say £15-20k - but you need to make careful notes about the agreement, get letters signed etc. and agree about whether the beneficiaries who waited get interest.

Mojisola

In_a_spin wrote: »

It is one of the residual beneficiaries who would like part of their money left in the executors account until they are ready to buy a property.

madbadrob wrote: »

Personally I would have them set up their own account and let them have the money in one go because you are liable for that money till its paid out. There is nothing to stop you doing this if you so wish but I wouldnt myself

I agree with Rob. If the estate is finalised, I would pay out and close everything down.

You will be personally responsible for the money left in the account until the person involved decides he/she wants the money.

John_Pierpoint

Can I smell the breakdown of a relationship ? A problem with creditors ?
You are giving the beneficiaries their R185s lined up with the tax year and the payment(s) ?

The quicker the executor can get rid of the estates money, the less likely he is to get involved in having to do an income tax return for the estate and the less likely that the beneficiaries will start asking questions about interest after "the executor's year".

virgin_moneysaver

John_Pierpoint wrote: »

Can I smell the breakdown of a relationship ? A problem with creditors ?
You are giving the beneficiaries their R185s lined up with the tax year and the payment(s) ?

The quicker the executor can get rid of the estates money, the less likely he is to get involved in having to do an income tax return for the estate and the less likely that the beneficiaries will start asking questions about interest after "the executor's year".

'the executors year' - from what date does that start? sorry to shanghai the thread OP

dzug1

Date of death