Paying beneficiaries from will

Yorkshireman99

Don't be bullied! He can just wait. If need be just refer him to the case of Arkell v Pressdram.

TBagpuss

Jetsam wrote: »

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 !!)

I think strictly speaking you would have to pay the estate (have you set up an executor's account?) then issue the cheque to the beneficiary.

You would be treating one beneficiary differently to the others so could run into difficulties if any of them changed their minds about being willing to wait.

Is it taking longer that if you had been selling to a 3rd party? If so, then they do have a valid complaint, as you are effectively treating one beneficiary (yourself) better than the others, by delaying a sale for your benefit. If the delay is not likely to be any longer than if you had sold on the open market then no one is disadvantaged by your buying the property and you can ask them all to wait.

Mojisola

TBagpuss wrote: »

Is it taking longer that if you had been selling to a 3rd party?

There's no way of knowing that. I had a sale for my Dad's house fall through at the last minute and we had to start marketing it again.

No-one can say that a private sale (rather the OP buying the house from the estate) would have progressed any faster.

Jetsam - You could loan the estate some of your personal money to pay off this beneficiary but you won't know the exact amount of their share of the inheritance until everything is finalised so a one-off payment won't get rid of them.

Unless they have an urgent need (rather than want) for the money, I'd tell them to wait.

FreeBear

Mojisola wrote: »

There's no way of knowing that. I had a sale for my Dad's house fall through at the last minute and we had to start marketing it again.

No-one can say that a private sale (rather the OP buying the house from the estate) would have progressed any faster.

An aunt of mine had been trying to sell a property after her husband died last year. It has been on the market for a year now and had three sales fall through in that time.

Selling for the best price on the open market can be fraught with unforeseen delays. For quick sales, auctions may be faster with the risk that the full price may not be attained - Even then, there is no guarantee that a property would sell.

Jetsam

Hi folks, thank you for your replies. TBagpuss, yes I did wonder if I would be legally required to actually pay into the Estate. I have set up an executors account. My old house has been on the market now for just over three months which I don't think is excessive. I'm not trying to delay anything. I would love to get things wrapped up. Around here, (West Midlands) there is a slight indication that since Brexit many properties on the open market have been slightly reduced ( my own included). At least I will honour the RICS valuation on my parents' old house and not try to have it revalued which might well result in a lower sum than it is presently valued at. So, Tbagpuss I take your point and realise that paying out early to just one of the beneficiaries might be unusual but is it illegal? Surely, if the other beneficiaries are happy and informed and support me (which they do) and the moaning minny gets his money then he will be happy too?


Re: Arkell v Pressdram - thanks Yorkshireman, most amusing!! I have been tempted to issue an identical rebuff on numerous occasions. (readers: it's well worth a look).


To Mojisola and Freebear - re the 'fall throughs' on house sales - at least I am unlikely to do this myself, i.e. back out of the proposed purchase of my folks' house and by buying the property there won't be any estate agents fees either because there is no need to market it. All good advice and thank you for your observations. I shall use them to remind the moaner that the open market is possibly a more time consuming and costlier way to go.

Mojisola

Jetsam wrote: »

So, Tbagpuss I take your point and realise that paying out early to just one of the beneficiaries might be unusual but is it illegal?

No - I paid out a sum to one beneficiary who wanted a lump sum for a time-sensitive purpose. It wasn't their full inheritance so they got the rest when the estate was wound up.

To Mojisola and Freebear - re the 'fall throughs' on house sales - at least I am unlikely to do this myself, i.e. back out of the proposed purchase of my folks' house and by buying the property there won't be any estate agents fees either because there is no need to market it. All good advice and thank you for your observations. I shall use them to remind the moaner that the open market is possibly a more time consuming and costlier way to go.

It's up to you whether you loan your own money to the estate to pay one beneficiary but it's above-and-beyond what's necessary.

Some people get very greedy after a death.

Jetsam

Thanks again Mojisola. That's heartening news and advice. I want to do things legally even if they might be construed as 'unusual'. Judging by your actions it would seem a safe thing to do, i.e. loan to the estate from my own funds.
It would be a last resort - guess I like a quiet life though! Its the 'Solicitor thing'
which causes me to post here in the first place because nothing seems black & white in their world - especially if they get a whiff of easy money to be made. Hope that doesn't sound too cynical.

Yorkshireman99

With respect you are being too kind. Beneficiaries should be treated equally and not given preference unless there are compelling reasons. Despite what I said earlier a polite but firm letter telling the difficult one that they will have to wait. There is no reason to feel obligated to do otherwise. What would happen if you were killed in an accident? Your executor would have great difficulty in retrieving the money. Don't do it!

Jetsam

Thanks Yorkshireman, I will definitely take my time. You make a good point. I hadn't considered all the implications but I will now. Thank you.