Beneficiary asking for payment to be made to a different account

silvercar

There is nothing technically wrong with not paying off an overdraft, however overdrafts are so expensive that it is difficult to imagine why someone who'd inherited money wouldn't pay it off immediately. Unless they are planning on spending / concealing the money and then declaring bankruptcy, at which point it becomes dodgy.

Could be an overdraft on a joint account and they don't want to be the one paying it off alone.

Margot123

sammy1234567 wrote: »

margot123, I was interested to read that your solicitor said only to pay beneficiaries by cheque.
Is bank transfer not an acceptable way to pay a beneficiary their inheritance?
Also, did your solicitor say you had to (try to) get a receipt signed by the beneficiary?
I am about to pay out a legacy.
Thanks.

My apologies for the late response.
The reason is that a bank transfer is basically made to a series of numbers, and rarely is the name checked. Not only that, get one digit wrong and someone will fall in very lucky if you can't reclaim the money!
A cheque is fully traceable, and leaves what my solicitor called a 'paper trail' should the beneficiary claim not to have received payment, or indeed acts fraudulently.
There is no need for a receipt as the cashing of the cheque acknowledges receipt of funds. However you can always ask them to sign a receipt to doubly make sure you are covered.

sammy1234567

Thank you for your reply, actually I only posted this question today.

That is good advice re distributing by cheque. So far I did one interim distribution by bank transfer, but the beneficiary has not signed the receipt I prepared and effectively refuses to sign it. I guess they can ignore the receipt, because the Executor firstly hands over the money, and then waits in vain for the receipt.

When you distribute, do you try to get the beneficiary to sign agreed accounts too? My beneficiary will not sign the Interim Accounts I prepared, ad appears not to understand the accounts, or to not accept them.

Also did you get them to sign an indemnity to say they are not bankrupt and will indemnify the estate/executor for any loss caused by failure to disclose bankruptcy (because the bankruptcy register can never be fully up to date).


Thanks.

Margot123

I posted a notice in The London Gazette, and a local newspaper, on the advice of my solicitor. He said there was no need for indemnities (if you can get anyone to sign them) providing a paper trail was kept.
I did a search for bankruptcies, and as you can only see what is openly available to members of the public, that is all you can do. A layperson is not expected to do searches to the same limit as a solicitor.
As for accounts, send them by recorded delivery so you know they have been received. I'm sure that is all you need to do; it's up to them if they read them.

Yorkshireman99

sammy1234567 wrote: »

Thank you for your reply, actually I only posted this question today.

That is good advice re distributing by cheque. So far I did one interim distribution by bank transfer, but the beneficiary has not signed the receipt I prepared and effectively refuses to sign it. I guess they can ignore the receipt, because the Executor firstly hands over the money, and then waits in vain for the receipt.

When you distribute, do you try to get the beneficiary to sign agreed accounts too? My beneficiary will not sign the Interim Accounts I prepared, ad appears not to understand the accounts, or to not accept them.

Also did you get them to sign an indemnity to say they are not bankrupt and will indemnify the estate/executor for any loss caused by failure to disclose bankruptcy (because the bankruptcy register can never be fully up to date).


Thanks.

There is no legal requirement to show the estate accounts to anyone though it is usual for the residual beneficiary to be given a copy. Personally I think it would be wise to show the will and accounts to any beneficiary who asked. The is no requirement to insist on a receipt since a crossed cheque is sufficient proof.

sammy1234567

Thanks v much for your help.

sammy1234567

Hi Malthusian (and anyone else who may be able to help)
Re your reply above, I am wondering about the possibility of posting a cheque to the beneficiary 'care of' their bank. I have got a beneficiary who spent their life living on benefits, followed by sofa surfing and no fixed address, and staying in short term B&Bs. So they may have no official address at present.
Have you recently posted correspondence in this way to a bank? Do I have to check with the bank first?
Thanks

Yorkshireman99

Definitely a no no and no again! Care of the DWP might be more appropriate!

Margot123

Ask them to provide you with their current address and photo ID, and a couple of utility bills, proving they live there. You will be unable to pay them otherwise.
I think you've received more than enough advice on what to do but still seem to think you have to put yourself in a precarious situation for the beneficiary. You will become unstuck if you keep on this tack.

chesky

Homeless people are able to use their local Job Centre as their official address.