Selling deceased's car

polkadot90

When selling the car does the money from it need to be kept in the executors account until the property is sold or can it be divided between the beneficiaries without waiting for the selling of the property or going into the account? Do I need a receipt signed by all the beneficiaries etc?

Thanks in advance

Mojisola

Is there enough money in the executor account to pay any debts and all the expenses to do with selling the property?

g6jns_2

chessiex wrote: »

When selling the car does the money from it need to be kept in the executors account until the property is sold or can it be divided between the beneficiaries without waiting for the selling of the property or going into the account? Do I need a receipt signed by all the beneficiaries etc?

Thanks in advance

Unless there is good reason for an interim distribution it is better to keep it. There may be unexpected costs to be met and recovering money's from beneficiaries could be difficult.

polkadot90

Brilliant thank you both. It seems wise to keep the money till everything is sorted.

Mojisola

chessiex wrote: »

Brilliant thank you both. It seems wise to keep the money till everything is sorted.

Although beneficiaries might be clamouring for money, you have to protect yourself as executor. You are legally and financially responsible for the decisions you make.

polkadot90

Mojisola wrote: »

Although beneficiaries might be clamouring for money, you have to protect yourself as executor. You are legally and financially responsible for the decisions you make.

Definitely worth remembering. I assume the same theory could be applied for all of the things sold before the house sale? Divide the money after the house is sorted out and the estate finalised.

Mojisola

chessiex wrote: »

Definitely worth remembering. I assume the same theory could be applied for all of the things sold before the house sale? Divide the money after the house is sorted out and the estate finalised.

It makes life easier for you.

If there is a lot of spare cash, the executors can give out an interim payment but, if most of the value of the estate is in the house, I think it's best to wait until everything is settled.

Tuesday_Tenor

chessiex wrote: »

I assume the same theory could be applied for all of the things sold before the house sale? Divide the money after the house is sorted out and the estate finalised.

Depends
(a) how many people are involved in doing things for the estate
and
(b) what the liquid assets in the estate are sufficient to deal with debts and e.g. house maintencance before property sold.

For a simple, very solvent estate:
When dealing with dad's estate there were only 2 children involved, both executors doing bits of the work and both the only and equal beneficiaries. As well as the executors bank account we kept a separate tally on a spreadsheet of all expenditure (probate fee, some utitlity bills, etc) paid by each of us and income received (some utility refunds, sale of car, sale of bits at auction etc) by each of us. At the time of finalising the estate I'd slightly gained on the 'petty cash' (for want of a better word) and my sister was slightly out of pocket, so the final distribution was adjusted accordingly.

[Except we'd made ourselves some interim payments so my sister wasn't ACTUALLY out of pocket in real terms!]

It doesn't matter how you do the detail, as long as it is properly recorded and accounted for.