How long can I hold on to a beneficiaries money?

abby1234519

So previously I've posted that I was applying for probate as my father lived abroad and so couldn't execute his step mothers will.

So this is all sorted, and 4 of the 5 beneficiaries have been paid. Any taxes paid etc

However the 5th beneficiary is ill and I think suffers agrophobia and doesn't own a telephone. I sent a letter with a self addressed envelope asking for details in order to make payment. My father doesn't want me to send a cheque which I do understand, I've paid everyone else by bank transfer and validated the details with a copy of their bank statement.

My Nana basically has told my Dad that my aunt is ill - I'm not letting them organise payment of money though, too many cooks etc.

So my question is - how long can I hold on to the money for? I sent my first letter in December so I am going to send a follow up letter tomorrow. It's not that I want to hold on to the money, it's that I don't want to fall foul of any tax laws or general laws. I've looked online but its a minefield.

I don't want to put pressure on the beneficiary, the money is in a passbook account so its not like it can be misused.

da_rule

Does this beneficiary live a particularly long way away? If not could you just go round there and give them a cheque/cash and get them to sign for it?

If not, you may have no other choice but to send a cheque. You can copy it before you send it, send it via a signed for service, then just wait for it to be cashed.

You can pay the money into the courts where a beneficiary is being uncooperative, however you must have done all that you reasonably could to ensure that the gift was paid before doing this. Therefore, sending one letter in December and not sending a cheque because your father doesn't want you to (you are the personal representative, not your father, therefore you are liable for any mistakes) probably won't be reasonable. It may be a case of driving there and giving him the cash or employing someone (such as a process server) to deliver it to him and give you a statement/declaration that it has been done.

Yorkshireman99

da_rule wrote: »

Does this beneficiary live a particularly long way away? If not could you just go round there and give them a cheque/cash and get them to sign for it?

If not, you may have no other choice but to send a cheque. You can copy it before you send it, send it via a signed for service, then just wait for it to be cashed.

You can pay the money into the courts where a beneficiary is being uncooperative, however you must have done all that you reasonably could to ensure that the gift was paid before doing this. Therefore, sending one letter in December and not sending a cheque because your father doesn't want you to (you are the personal representative, not your father, therefore you are liable for any mistakes) probably won't be reasonable. It may be a case of driving there and giving him the cash or employing someone (such as a process server) to deliver it to him and give you a statement/declaration that it has been done.

There is no need to go to that extreme. If the executor has made reasonable efforts tolocate and pay the beneficiary then all they need to do is hold the money for six years after which the beneficiary will be unable to recover it.

abby1234519

da_rule wrote: »

Does this beneficiary live a particularly long way away? If not could you just go round there and give them a cheque/cash and get them to sign for it?

If not, you may have no other choice but to send a cheque. You can copy it before you send it, send it via a signed for service, then just wait for it to be cashed.

You can pay the money into the courts where a beneficiary is being uncooperative, however you must have done all that you reasonably could to ensure that the gift was paid before doing this. Therefore, sending one letter in December and not sending a cheque because your father doesn't want you to (you are the personal representative, not your father, therefore you are liable for any mistakes) probably won't be reasonable. It may be a case of driving there and giving him the cash or employing someone (such as a process server) to deliver it to him and give you a statement/declaration that it has been done.

I live in England, they live in Scotland. It's a looooonggg distance.

My father was the executor, as it's his family I am not so much taking instruction from him but trying not to ruin our relationship by doing things he might disagree with. We've already fallen out as I made partial payments to the beneficiaries whilst I was waiting for access to the second half of the money. But that's sorted now anyway.

Yorkshireman99 wrote: »

There is no need to go to that extreme. If the executor has made reasonable efforts tolocate and pay the beneficiary then all they need to do is hold the money for six years after which the beneficiary will be unable to recover it.

This helps thanks - so basically I can leave it in the account, I just was worried that there might be a time limit (ie 6 months).

I'm sure she will write back when she is well enough, my nana (her mother) is aware of the money so I don't think it's going to be forgotten about! My main issue was that she is on benefits and I don't want her to get into trouble with the DWP if she puts off having the money. But I also didn't realise how ill she was, and now I do I understand why she hasn't responded

Yorkshireman99

abby1234519 wrote: »

I live in England, they live in Scotland. It's a looooonggg distance.

My father was the executor, as it's his family I am not so much taking instruction from him but trying not to ruin our relationship by doing things he might disagree with. We've already fallen out as I made partial payments to the beneficiaries whilst I was waiting for access to the second half of the money. But that's sorted now anyway.



This helps thanks - so basically I can leave it in the account, I just was worried that there might be a time limit (ie 6 months).

I'm sure she will write back when she is well enough, my nana (her mother) is aware of the money so I don't think it's going to be forgotten about! My main issue was that she is on benefits and I don't want her to get into trouble with the DWP if she puts off having the money. But I also didn't realise how ill she was, and now I do I understand why she hasn't responded

Regardless of her actually receiving the money she is obliged to declare it if she is in receipt of any means tested benefit. This applied from the date of the death.

Linton

Does anyone have Power of Attorney for your aunt?

Mojisola

Yorkshireman99 wrote: »

Regardless of her actually receiving the money she is obliged to declare it if she is in receipt of any means tested benefit. This applied from the date of the death.

AIUI, she doesn't need to declare that she will be getting an inheritance.

The capital only affects means tested benefits when the money arrives in the claimant's account, not from the date of the death.

If a claimant refused to accept an inheritance, that would be seen as deliberate deprivation. Where the claimant is sick and unable to accept the money, some leeway would be given.

Yorkshireman99

Mojisola wrote: »

AIUI, she doesn't need to declare that she will be getting an inheritance.

The capital only affects means tested benefits when the money arrives in the claimant's account, not from the date of the death.

If a claimant refused to accept an inheritance, that would be seen as deliberate deprivation. Where the claimant is sick and unable to accept the money, some leeway would be given.

If the inheritance makes the claimants funds go over the level that their benefits are affected the claimant is obliged to disclose it ASAP. The fact that it may be many months until they receive it does not alter the obligation to notify the change in circumstances. If they don't do this they are claiming benefit that they are not entitled to.

Mojisola

Yorkshireman99 wrote: »

If the inheritance makes the claimants funds go over the level that their benefits are affected the claimant is obliged to disclose it ASAP. The fact that it may be many months until they receive it does not alter the obligation to notify the change in circumstances. If they don't do this they are claiming benefit that they are not entitled to.

I don't think that's how it works.

A claimant's situation hasn't changed until they actually receive their inheritance. Any change in benefits will only happen after the money is in the claimant's account - unless it can be shown that they were complicit by refusing to take the inheritance. In that case, the DWP would claim back the benefits for the relevant period.

Yorkshireman99

Mojisola wrote: »

I don't think that's how it works.

A claimant's situation hasn't changed until they actually receive their inheritance. Any change in benefits will only happen after the money is in the claimant's account - unless it can be shown that they were complicit by refusing to take the inheritance. In that case, the DWP would claim back the benefits for the relevant period.

I checked with the DWP. The claimant IS obliged toi report any change in circumstances that might affect their means tested benfits. The specifically said inheritance needs to be report ASAP to avoid overpayment. I asked what if they have no knowledge and they said it must be reported as soon as they do know. They also stated that repayment would be due from the date of death though they would not expect it until the money had actually been received.

abby1234519

Ok so they didn't know at death as they aren't in touch with family. Its taken over a year since date of death for probate to be sorted (it actually didn't need to take that long but hey ho) so the first they'd have known is December.

Isn't the savings limit 16k for benefits? It's twice that