Paying beneficiaries from will

2kidz75

Hi, has anyone had any experience in paying out money to beneficiaries? I am acting as executor for my Dad's estate and think I am in a position to pay the beneficiaries their bequests. Four of these are children and it has been suggested that I make a payment to each family with one cheque per family. Can anyone share their experiences on this matter? I feel I should issue a cheque to each individual. Thanks

Yorkshireman99

2kidz75 wrote: »

Hi, has anyone had any experience in paying out money to beneficiaries? I am acting as executor for my Dad's estate and think I am in a position to pay the beneficiaries their bequests. Four of these are children and it has been suggested that I make a payment to each family with one cheque per family. Can anyone share their experiences on this matter? I feel I should issue a cheque to each individual. Thanks

Are the children aged over 18? Unless they are the money has to be held in trust until they are. Each beneficiary should be treated separately and the parents need to understand that the funds must go into an interest bearing account until the children are 18.

Keep_pedalling

How old are the children and what size are the legacies?

Was the person who suggested this a parent of one of the children per chance?

If the children are close to their 18th birthdays then I would just delay the payment until their birthday, otherwise I would be looking at getting the money in JISAs for them, which discharges your duty and they will have access to the money automatically once they are 18, and no one else can touch it.

Yorkshireman99

Halifax have the best JISA but only a parent can open it. Once it is open anyone can make deposits but no withdrawals until aged 18. That means that the parents can't access the funds that can be a good idea in some circumstances.

TBagpuss

What does the will say? In some cases the will allows a parent to give a valid receipt on behalf of their child.

If the will doesn't allow this, then the money must be held on trust until each individual child is 18, and there are rules about what type of investments can be used.

Even if the will does allow you to pay the money to the parents for the children then I'd suggest that you issue a separate cheque, and get a separate receipt, for each beneficiary

Jetsam

Hello. I saw your question posted just below mine on this forum and I too would like some advice on this matter, i.e. paying out beneficiaries. Like you I am an executor but in my case there are no children to consider, just adults. I hope soon to have the requisite sums that are due to my fellow beneficiaries and was wondering if I needed solicitors to 'verify' or otherwise 'sanction' these payments. Or can I just go ahead and write out individual cheques to them off my own back without recourse to Solicitors (and their costs). Hope you don't feel I'm hi-jacking your post.:o

TBagpuss

If you are the executor you can make the payments. It's sensible to ask them to provide a receipt, and of course you need to be sure that you have dealt with any debts or liabilities of the estate and do have the correct amounts, but unless the solicitors are joint executors with you don't need to go to them for any confirmation or authorisation.

Savvy_Sue

TBagpuss wrote: »

What does the will say? In some cases the will allows a parent to give a valid receipt on behalf of their child.

If the will doesn't allow this, then the money must be held on trust until each individual child is 18, and there are rules about what type of investments can be used.

That's really helpful: I know someone about to change their will to appoint (adult) nephews as executors. It's likely the person will survive until all the beneficiaries are 18, but if they don't it would obviously make the task much simpler if the executors could legitimately dish all the dosh out without setting up trusts!

getmore4less

It is very common to appoint parents as trustees the will does not have to specifically include that option(just not exclude it).


there is no "setting up trusts" they exist automatically created by the will or intestate rules.

konark

Have you ensured there will be no unexpected creditors coming out of the woodwork?. A notice in the London Gazette is enough to stop you being held personally liable. The DWP also usually run a check to see they're not owed any money, and will write to give the all-clear.

Jetsam

The following copy and paste is from an enquiry I placed on this forum several weeks ago,
"Like you I am an executor but in my case there are no children to consider, just adults. I hope soon to have the requisite sums that are due to my fellow beneficiaries and was wondering if I needed solicitors to 'verify' or otherwise 'sanction' these payments. Or can I just go ahead and write out individual cheques to them off my own back without recourse to Solicitors (and their costs). "
I would like to re-jig this a little bit and ask you folks out there for advice.
As executor in a parents will I am hoping to buy the house off the estate. After consulting with the other beneficiaries we have now all agreed on a price (using RICS to value the property). One of the beneficiaries has been troublesome and though agreeing to let me buy the house this person has now run out of patience and is demanding their money now. (It is taking me a little longer than thought to sell my old property which I need to do to pay off the other beneficiaries.) All the other beneficiaries are happy with the situation and have taken an 'as and when' attitude. I wonder therefore is it ok to pay off the troublesome one now ( I can manage this out of my own funds ) just to shut them up ? Is this legal as the money would have come from me not the estate. If this is legal, can I do it without further recourse to Solicitors, in other words just write out a cheque. And, once done and the cheque is cashed has that beneficiary been dealt with fairly and within the law ? (sub text: I can then tell them to b***** off !!)