Is executor liable for household bills ?

elizabethsmum

My uncle died last year . I am named as the executor of the will . He left a will and left money to my dad and his property to myself and my 2 brothers . I have done the probate myself , everything is sorted and dad has been given the cash . The house is for sale . House insurance on the property is now due and energy bills .need to be paid . The house is empty . I have asked my brothers for money in order to pay the bills and they have refused . They said because im the executor im liable for all the bills and they refuse to help . Is this correct . I have had all the stress of the probate and they have done nothing . The house belongs to the three of us so shouldnt we share costs , we will all receive equal shares when its sold ?

madbadrob

You shouldnt have paid out any money until all debts are paid and that included the bills for the house. What your brothers may not be aware of though is that you are selling the house and you are able to claim all out of pocket expenses from the estate so pay the bills then take it back when the house sells. Just make sure you keep the receipts and put together a full set of accounts which you should give them a copy of. If they then dispute this tell them to take you to court because they will lose

Rob

elizabethsmum

Thanks for replying . I presumed because we were the owners of the property we were liable for the bills . Im receiving quarterly bills for the utilities . The house could take months to sell . I didnt want to keep hold of dads money . I dont have the money to pay the bills as the present time . Doesnt seem fair them doing nothing and then receiving a lot of money . Ive received no help or support at all .

troubleinparadise

If you have already transferred the title for the house via Land Registry into your 3 names, then yes, you would be liable for the utility, insurance and associated bills.

If the title deeds remain in your uncle's name and the 3 beneficiaries will just share the proceeds after the sale then the estate remains liable for the bills.

As the sole executor you are responsible for executing the will, stresses and all. It may not seem fair, but that's just the way it is.

As is the need to understand all the processes of executing a will - and unfortunately you haven't followed the steps properly, which is why you have increased your burden of stress.

This leaflet from Age Uk gives a guide to the main duties of an executor, but you can find more detailed books in your local library:

http://www.ageuk.org.uk/Documents/EN-GB/Information-guides/AgeUKIL8_How_to_be_an_executor_inf.pdf?dtrk=true

madbadrob

I am also guessing from the post you havent checked for what other debts your uncle may be liable for. I would be looking at the document trouble as suggested and then maybe drop into a local library and read up on what your role as executor is.

By not knowing the responsibilities of executor are you may have now left yourself open to paying all these debts out of your share of the house.

Just as an idea for you the role of the executor is and assuming you didnt organise the funeral. Obtain probate and pay any IHT liabilities which is what you have done. Then you should collect all monies in any bank accounts of your uncles and any debts owed to your uncle. You should then sort out any debt that your uncle owed. This is where you should place a section 27 notice in the London Gazette and the paper local to where your uncle resided and then wait the set length of time. If any creditors come forward it is your repsonsibility to then confirm this debt and settle them. This protects you as executor should any debt appear in the future but not the beneficiaries. You then from the residue amount pay out any gifts of money. If the money left in the estate doesnt balance to the gifts you then should work out what percentage of what is left each beneficiary is entitled to. With your dad being the only beneficiary of a cash legacy that is easy.

At this stage you have the house left and you can at this point change the deeds to reflect you and your siblings or do as you have done put the house on the market. Depending on the condition of the property and more important the location will depend how long it takes to sell but during that time you as executor are liable for paying either from the estate if you have the money left to pay from that all the household bills. In your situation I would switch off the gas electric etc and inform the utilities no one lives there. If you want a quick sale of the house you could put it to auction. You will get nowhere near the house value but you will get it off your hands. As executor you can do this and your brothers dont get a say in that.

I would tell your brothers this is what you intend to do because you cannot afford the bills etc and without their help they will be losing a far larger amount of their legacy.

If you choose to leave the house with estate agents keep all receipts of bills paid and when you get the cheque for the house sale take out the money you have spent in respect of utilities. Then draw up a final account and give your siblings a copy plus their share of the remainder from the house sale.

Rob

elizabethsmum

I did follow the steps correctly for probate . An ad was placed in the London Gazzette . Any household bills , funeral expenses etc where paid out of the estate . The house was paid for in full and there where no debts outstanding .
The house has been transferred into our 3 names . The house insurance premium has increased because the property is empty . The utility bill is the standing charge due . I just presumed that my brothers would be willing to help me pay .
Seems all they want is a nice fat cheque at the end of the day . I organised the funeral and gave sorted everything . My uncle never had any children of his own and i was very close to him . I was quoted £9000 for probate but i did it myself to save money . Think i might charge my brothers for my expenses and take it from their share !

spacey2012

If everything is finalised, you are discharged and any bills are now down to the property owners.
3 = 3 split the bills.
Cancel any utility contracts, let the new owners sort them out.

madbadrob

Elizabethsmum,

If the house has been changed into the three of your names then your duties as executor are formally over. The sale of the house is now an agreement between the three of you. Therefore I would throw that back at them. If they still refuse to pay tell them you will recover the money from the sale of the house.

As executor you cannot charge for your time unfortunately. You can only charge the estate for your out of pocket expenses but again by paying your dads share and transferring the house into joint names you have lost that option because again your executorship as finished.

Rob

getmore4less

Did the will insist on the house being transferred?

hindsight

might have been better to sell within the estate as you as executor can set/agree a price.

Now you need all of you to agree if it is not selling reduce the price(a lot, as you no longer have executor responsibilities).

spacey2012

If they throw it back stating you are executor say OK then, if I am, I decide what happens, I do not need this pressure and the house goes in the first auction to the best bidder without reserve.

Bet they soon decide you are not then.