Credit cards during probate

g6jns_2

getmore4less wrote: »

No problem with the bills being paid and refunded from the estate or structure as a loan to the estate.

It really is this simple.

You clearly have no comprehension of the law relating to trustees. It is not nearly as simple as you think.

getmore4less

There is nothing in law that would prevent any party paying a debt/bill(that includes the beneficiaries, executors acting as themselves, other) and the estate refunding them at some point later.

Happens a lot with IHT bills as that is the only way to get the grant.

Mattygroves2

g6jns wrote: »

You clearly have no comprehension of the law relating to trustees. It is not nearly as simple as you think.

My OH is a professional Trustee for several Trusts so I think he is aware of what a Trustee can and can't do. As Executor He had no problem settling his Father's paper bill, the bill for the wake, a couple of credit card bills and the expenses of keeping a house going whilst it was being sold, the fees for valuing parts of the Estate for probate (I doubt a local jewellers would be happy to wait 6 months), personal tax liabilities as well as the IHT bill. All to be reclaimed from the a Estate once probate is granted and investments and the house have been sold.

We have also on occasion paid expenses on behalf of a family discretionary trust (of which OH is a trustee) and then claimed them back. Far better to do this then suffer tax penalties because it takes time to get cheques double signed and the deadline for payment is looming.

There is also the problem that some banks release the monies in the form of a cheque payable personally to the Executor so it goes the other way as well. We found that the DWP would only pay the pension due by electronic means and Nat a West Executor accounts won't accept electronic credits until after payment so their payments ended up in our account as well.

Obviously good records need to be kept but it is a common practice and doesn't need special legal arrangements.

joerugby

Mattygroves2 wrote: »

My OH is a professional Trustee for several Trusts so I think he is aware of what a Trustee can and can't do. As Executor He had no problem settling his Father's paper bill, the bill for the wake, a couple of credit card bills and the expenses of keeping a house going whilst it was being sold, the fees for valuing parts of the Estate for probate (I doubt a local jewellers would be happy to wait 6 months), personal tax liabilities as well as the IHT bill. All to be reclaimed from the a Estate once probate is granted and investments and the house have been sold.

We have also on occasion paid expenses on behalf of a family discretionary trust (of which OH is a trustee) and then claimed them back. Far better to do this then suffer tax penalties because it takes time to get cheques double signed and the deadline for payment is looming.

There is also the problem that some banks release the monies in the form of a cheque payable personally to the Executor so it goes the other way as well. We found that the DWP would only pay the pension due by electronic means and Nat a West Executor accounts won't accept electronic credits until after payment so their payments ended up in our account as well.

Obviously good records need to be kept but it is a common practice and doesn't need special legal arrangements.

Interesting comment re Natwest.

They were very helpful in my case last year.

They allowed payments into my executor's account, both in branch and electronic, prior to probate being granted but would not allow payments out until they had seen the grant.