Can POA/Executor give a legacy before death?

Mojisola

growler834 wrote: »

I have POA for my mum & I'm also the sole executor of her will. She is currently in the end stages of dementia and resides in a nursing home.

In her will she bequeathed her shares (worth approx £1000) to her grandson who lives in Australia. He is currently in financial need and I wondered if I could cash in the shares & give him the money now?

growler834 wrote: »

If I gave him the money from my own savings, would it be legal for him to sign an agreement that it would be paid back out of the legacy left to him?

A loan agreement between you and your son is entirely separate from any possible inheritance.

If you can afford to loan him the money, set more general terms of repayment. Perhaps he could start repaying a small amount fairly soon to ensure that you do get your money back.

unholyangel

OP have you fully considered all the angles on this?

What happens if the shares become worthless? Are you sure the shares still exist? What happens if there isn't enough left in the estate to cover bequests after debts are paid?

Is this your son? I'm not so sure any agreement (on you loaning him the money to be repaid when he inherits) would be legally enforceable - the shares he'd be offering as consideration aren't his and that bequest may fail for various reasons (which would mean the clause saying he was to repay you would not be triggered even if the agreement was enforceable).

Yorkshireman99

growler834 wrote: »

Thank you everyone for your input. I am cognisant of the guidance notes as I have been her POA & dealt with her finances for 6 years now. However, my question isn't fully covered in the guidance notes & I was hoping my position could be clarified, particularly as they state :

'You can take the contents of a person's will into account when making gifting decisions, as it is an indication of the person's wishes. In his judgment 'Re Joan Treadwell deceased [2013]', Senior Judge Lush commented at paragraph 88:
In the context of someone's property and financial affairs, I can think of no written statement that is more relevant or more important than a will'.

If I gave him the money from my own savings, would it be legal for him to sign an agreement that it would be paid back out of the legacy left to him?

Having read the entire judgement I think you would be on very dodgy ground by paying the money. The judges words are taken out of context and have little to do with the case itself. It certainly is not, in any way, carte Blanche to give money as you proposed. As for effectively lending the money yourself what guarantee would you have of being repaid? You will need paid for professional advice as to the exact wording and enforeabilty of any agreement. Personally I would say it would be very unwise.