Paying beneficiaries of a will ?

[Deleted User]

My Mum died recently. She left a will - leaving all her estate to me (a small bungalow and a small amount of savings) and named me as her executor. I've now been able to get access to her bank account and, after the funeral is paid for (she was very specific about what she wanted and that it should be paid out of HER money), there will not be enough money left to pay the small bequests she set out in her will (mainly charities).

Does this mean that I will have to pay them myself or sell the bungalow?

Sorry if this sounds a bit mean (I loved my Mum very much). It's just that I'm struggling financially and I know that the bungalow will need work doing to it (that she has been putting off) which I will need to pay for (not sure how) and then had hoped to live in it.

Thanks

RAS

Yes, the beneficiaries are entitled to their inheritances and charities have a duty to pursue them.

DigForVictory

My condolences & best wishes with your duties as executor.

While an executor must not act with "undue delay", I think you could allow yourself up to a couple of years to pay the bequests, as that would be an understandable timeframe for sorting & selling the bungalow.

If you want to keep it, then save up & pay the bequests. You may want to write to them & let them know the bequest is coming but you have the estate to sort. Their replies may help you figure which ones to pay first?
(I'd write as The Executor as otherwise you may find yourself on a mailing list for decades.)

[Deleted User]

DigForVictory wrote: »

My condolences & best wishes with your duties as executor.

While an executor must not act with "undue delay", I think you could allow yourself up to a couple of years to pay the bequests, as that would be an understandable timeframe for sorting & selling the bungalow.

If you want to keep it, then save up & pay the bequests. You may want to write to them & let them know the bequest is coming but you have the estate to sort. Their replies may help you figure which ones to pay first?
(I'd write as The Executor as otherwise you may find yourself on a mailing list for decades.)

Thanks, that's really useful. Thinking back, it would have been really useful if the solicitor who drew up the will had included a clause about them being paid only if there was enough left in cash (or a percentage of what was left rather than a stated amount). I know my Mum would have been mortified to think that this situation could arise after her death.

Mojisola

Take legal advice - what happens depends on the wording of the will.

If the house is left to you as a separate thing (rather than just being part of the residue of the estate), it should come to you as it stands and shouldn't be used to pay other beneficiaries.

Crabapple

DigForVictory wrote: »

While an executor must not act with "undue delay", I think you could allow yourself up to a couple of years to pay the bequests, as that would be an understandable timeframe for sorting & selling the bungalow.

Just bear in mind that if legacies are not paid within a year of the death then interest will need to be added to the sum.

As Mojisola says, have a chat with a Solicitor and get their advice as the wording of the Will may affect whether the legacies need to be paid in full or not.

[Deleted User]

Mojisola wrote: »

Take legal advice - what happens depends on the wording of the will.

If the house is left to you as a separate thing (rather than just being part of the residue of the estate), it should come to you as it stands and shouldn't be used to pay other beneficiaries.

Yes, the house was specifically left to me, and then the remainder of her estate to me also, apart from the small bequests. However, the remainder won't cover the bequests.

Will try to speak to a solicitor without incurring yet more bills

getmore4less

Corona wrote: »

Yes, the house was specifically left to me, and then the remainder of her estate to me also, apart from the small bequests. However, the remainder won't cover the bequests.

Will try to speak to a solicitor without incurring yet more bills

it will come under what is known as abatement there are strict rules on this worth a bit of reading before seeing a solicitor.


here is one link to get you going(google for others)


http://www.hmrc.gov.uk/manuals/ihtmanual/ihtm12086.htm

[Deleted User]

getmore4less wrote: »

it will come under what is known as abatement there are strict rules on this worth a bit of reading before seeing a solicitor.


here is one link to get you going(google for others)


http://www.hmrc.gov.uk/manuals/ihtmanual/ihtm12086.htm

Thank you - that's REALLY useful !

Mojisola

Corona wrote: »

Thank you - that's REALLY useful !

It will be worth getting a solicitor involved because some charities are known to vigorously pursue legacies - you may need a letter from the solicitor to stop them badgering you.

Be prepared for a bit of emotional blackmail "Even if there isn't enough money, your mother obviously wanted our charity to benefit, don't you want to honour her wishes" and so on.

nom_de_plume

Corona wrote: »

..... She left a will - leaving all her estate to me (a small bungalow and a small amount of savings) and named me as her executor....... there will not be enough money left to pay the small bequests she set out in her will (mainly charities).

Your wording is a little confusing as you say your Mum left you everything but then she left some to charities so, as others have alluded, the precise wording is critical.

I'm going to guess she left you her bungalow (specifically), then the cash legacies (including charities), with the residual left to you.

If this is the case then you get the bungalow in it's entirety. The next to be paid out would be the cash legacies, in full, if there's sufficient monies available, or equally reduced by the same percentage. Then the residual, if any, gets distributed.

One point to note is that if there is any inheritance tax due, charities are not liable to IHT and possibly their share should reflect this fact. A maths O level or better is useful here......