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

getmore4less

Since it has never been relvent to things I deal with I don't look further.

some trusts assets do impact IHT so this may be one of them
eg. https://www.gov.uk/trusts-taxes/trusts-and-inheritance-tax


As they have done this a few times allready for other benificiaries it should be fairly slick process.

datostar

G6JNS wrote: »

Just because a bank in specific circumstances were prepared to do so it not grounds to advise that it is general practice. Financial institutions vary widely in what they will do. That is why caution is wise when giving advice.

Both Santander and Halifax Banks have told me categorically in the last 2 weeks that it is their policy to release up to £25,000 (and close accounts) to Personal Representatives without grant of probate/representation on production of Death Certificate and suitable ID. That is their general practice and not reserved for specific circumstances. Obviously if balances with each bank are more than £25,000 this will not apply and their other general practice of paying funeral expenses from the deceased's account(s) will apply instead.

Elder_son

Thanks again getmore4less. My main purpose in coming here was to ask whether I could get money from the estate and its income sources, to look after the upkeep of the house and my brother, as I had been given the strong impression from others that everything would be frozen until probate is granted. So the big and very helpful discovery from the kind people on MSEF is that is not the case and so there is no reason to suppose that banks and others will not be helpful.

You and BobQ are right in saying that I need to find out more about what has long been described as a trust, which has not been queried by my Mum, but may well, at least in part, be something else. But they have been very, er, private, about how things work for many years! However, whatever it is, it seems clear that there are assets there which are part of my Mother's estate.

My brother is 61 and has never worked; nor is he likely to die before probate is granted and, despite his autism, is no fool, just different from others and with a strong streak of anorakism and an almost hermit-like existence. If I die (I am no chicken, as I am 66) then my Mum's will has another executor and is also very clear about putting my brother's inheritance into a trust which, when he dies, will go to my two children.

I paid for my Mum's funeral and reclaimed it from her bank account before I wrote to them, and all the other asset holders, saying she was dead and enclosing a certified death certificate. I cleared the idea of reclaiming the funeral costs with her accountants before doing so. They are currently assessing her income for 2014/5 and from the end of the last tax year until her death.

BobQ

Elder_son wrote: »

I paid for my Mum's funeral and reclaimed it from her bank account before I wrote to them, and all the other asset holders, saying she was dead and enclosing a certified death certificate. I cleared the idea of reclaiming the funeral costs with her accountants before doing so.

If you are saying that when your mother died the bank was not notified for a couple of weeks during which timmyou withdrew funds to pay for her funeral, I believe that this is illegal. Any Power of Attorney would cease on death. I an also surprised a professional accountant would say this was OK.

Still, it sounds as if you are the only one who could complain!

G6JNS

Elder_son wrote: »

Thanks again getmore4less. My main purpose in coming here was to ask whether I could get money from the estate and its income sources, to look after the upkeep of the house and my brother, as I had been given the strong impression from others that everything would be frozen until probate is granted. So the big and very helpful discovery from the kind people on MSEF is that is not the case and so there is no reason to suppose that banks and others will not be helpful.

You and BobQ are right in saying that I need to find out more about what has long been described as a trust, which has not been queried by my Mum, but may well, at least in part, be something else. But they have been very, er, private, about how things work for many years! However, whatever it is, it seems clear that there are assets there which are part of my Mother's estate.

My brother is 61 and has never worked; nor is he likely to die before probate is granted and, despite his autism, is no fool, just different from others and with a strong streak of anorakism and an almost hermit-like existence. If I die (I am no chicken, as I am 66) then my Mum's will has another executor and is also very clear about putting my brother's inheritance into a trust which, when he dies, will go to my two children.

I paid for my Mum's funeral and reclaimed it from her bank account before I wrote to them, and all the other asset holders, saying she was dead and enclosing a certified death certificate. I cleared the idea of reclaiming the funeral costs with her accountants before doing so. They are currently assessing her income for 2014/5 and from the end of the last tax year until her death.

If you did not inform the bank of her death and withdrew money then that was illegal. The bank may not be willing to cooperate further with you because of that. You need some advice from someone who knows what they are doing. No accountant would condone such action.

Elder_son

Yes, I was surprised. And, as the funeral cost nearly £8K, I was glad too. However, my brother was administering this account, online, on my mother's behalf, for the last year of her life. Possibly, too, he may be seen as a tenant and thus allowed certain privileges.

Savvy_Sue

getmore4less wrote: »

There is the seperate issue of the managing of the Brothers affairs presumbably there is a deputy in place if neccessary for a funerable adult.

vulnerable?

BobQ

Elder_son wrote: »

Yes, I was surprised. And, as the funeral cost nearly £8K, I was glad too. However, my brother was administering this account, online, on my mother's behalf, for the last year of her life. Possibly, too, he may be seen as a tenant and thus allowed certain privileges.

No point in confessing now:) Your brother was acting illegally and has no special rights once your mother died, but in practice if you are the only two beneficiaries and he did it and you do not complain that he did it then I doubt it will be a problem.

getmore4less

Executor rights derive from the Will.
(this allows certain activities not technically possible with Letters of administration, although in practice do happen.)

Paying funeral bills from estate assets is standard practice in all cases.
The process of access was dubious, should have presented the bill to the chosen bank it would have been paid

Distribution(even interim) probably should wait till the debts and IHT are known and paid(or agreement to pay) although in practice if you know the estate is fully solvent(sounds like it is) then use of funds to meet a dependants needs is unlikely to be challenged.

Some spends are acceptable eg. those needed to preserve the estate like house insurance.

IF the brothers inheritance will be in trust then those trustees need to be involved.

You need to keep detailed records and seek advise on getting a lot of this sorted correctly you are on a steep learning curve here.

I would also look at IHT planning if the estate and 50's trust are substantial this may leave your estates IHT vulnerable.

I think this trust from the 50's needs some serious research to understand what is there and what succession planning is in place for trustees, may even be time to consider dissolving at least knowing what the termination plan is as this is getting much closer(if it is limited to 80years).

wwl

datostar wrote: »

Both Santander and Halifax Banks have told me categorically in the last 2 weeks that it is their policy to release up to £25,000 (and close accounts) to Personal Representatives without grant of probate/representation on production of Death Certificate and suitable ID. That is their general practice and not reserved for specific circumstances. Obviously if balances with each bank are more than £25,000 this will not apply and their other general practice of paying funeral expenses from the deceased's account(s) will apply instead.

HSBC's info sheet "What happens when we are notified of the death of a Customer" says :

UK Residents : where the total funds held within all HSBC accounts is less than £20 000, we may be able to release these without the need for probate