How do I fund the deceased's estate after death?

Elder_son

My Mum died a few weeks ago. I am an Executor and I've done everything that needs to be done with no trouble, but getting probate is likely to take a good 9 months. In the meantime, her house needs to be maintained until it can be sold. Importantly, my younger brother, who is autistic, has lived with my Mum all his life and has no money of his own. So the big difficulty is likely to be that the every day costs of the house and my brother need to be funded, but the bank is very probably going to freeze my Mum's current account. How do I deal with this? My Mum had, and her estate will have, a regular income source from a family trust which, if it could be credited to her account, or a new Executor's account, would solve this problem. But is this idea likely to be accepted?

wwl

Banks will often release funds up to about 20K or so without probate.
Your brother may be entitled to benefits.

Savvy_Sue

I think I'd start by talking to the trustees of the Family Trust and asking if it would be OK to change the account into which the money is now paid. Will it benefit your brother in future? If so, setting up an account which can be used to meet his needs would probably be sensible.


Is there a reason you anticipate probate taking so long?

Elder_son

Thanks wwl. It would be reasonable for a bank to take a helpful attitude like that, especially as they want to look friendly these days.

Elder_son

Thanks Savvy_Sue - that's my next move if the bank say no. But reassuring to hear you think that is reasonable. My Mum's assets are varied and very disparate! The last time there was a valuation of the Family Trust for probate, which has a wide variety of properties, it apparently took 18 months... Yes, my brother is an equal beneficiary of her will, although his inheritance will go into a trust.

wwl

My Mum's assets are varied and very disparate!

So probably good chance some of them will release funds before probate.
Still hard to see how it could take 9 months to value the assets, especially if you're doing it yourself rather than waiting for a solicitor.
Presumably you got enough death certs to send them all out at once rather than waiting for each institute to returnone ?
Bear in mind that after I think 6 months any IHT due will start attracting interest, so you don't want to hang around too long.
You can indicate on IHT forms which figures are estimates.

Savvy_Sue

Elder_son wrote: »

My Mum's assets are varied and very disparate! The last time there was a valuation of the Family Trust for probate, which has a wide variety of properties, it apparently took 18 months...

But who did that, a solicitor or a private individual? Solicitors can be horrendously slow - you may still want to use one if matters are complicated, but just instruct them for the bits you NEED them for.

Elder_son wrote: »

Yes, my brother is an equal beneficiary of her will, although his inheritance will go into a trust.

That's not really what I was asking.


Mum had income from a trust, which will continue, you said. If that's passing to your brother (maybe you too) under the terms of the will, then it may have to wait for probate, I don't know, but if that part of the will is straightforward then what I suggested seems reasonable (to me, but then IANAL!)


However, if the income is passing OUTSIDE the estate - as happens with some pensions - then absolutely you can arrange to pay it into a new account.


However, start by asking. Are the trustees professionals?

Elder_son

I have a solicitor but I'm doing as much of the early leg work as I can, and getting on with things - and it's useful to get my hands on and learn. So I hope that 9, or even 18, month probate estimate is way over the top. I can see that some people might want their work to seem difficult and thus require a lot of time. The last valuation of the Family Trust took a long time because of bargaining between the trustee, who is an accountant, and the local city valuers. Yes, all of the income from the trust will pass equally to my brother and me after probate. And, yes, got 20 certified death certificates so well supplied in that respect! There are shares and other bank and savings funds too.

G6JNS

Sadly this is a myth. Banks, and other financial institutions MAY release some fund if they are given an indemnity but they are not obliged to do so. The only way to be sure is to ask.

wwl

G6JNS wrote: »

Sadly this is a myth. Banks, and other financial institutions MAY release some fund if they are given an indemnity but they are not obliged to do so. The only way to be sure is to ask.

What is the myth? It is a fact that some financial institutions have a policy of releasing funds without probate when certain criteria are met. In my case Lloyds released £20K a couple of weeks after having sight of ID, Will, and Death cert, and me signing an indemnity form.
Premium Bonds also released £10K - I don't recall what they needed.
(Both of these were without me asking )

Elder_son

I have asked the bank, Lloyds, and the question has been referred to their Specialist Bereavement Section...