Professional executor's bill - division of responsibility between legatees

Strad

My ex-husband left his house and contents to his girlfriend and the residue of the estate to be divided between her, my son, daughter and one granddaughter. The residue is not even enough to pay all the funeral bill. The bank is executor and will charge 10% of the value of the estate. My daughter has been told by the bank's solicitor that their bill will be divided equally between the legatees; and that even though only the girlfriend will actually inherit any money from the sale of the house, my daughter son and granddaughter will be expected to pay their share of that bill from their own pockets. Is this correct?

Keep_pedalling

10% is utterly outrageous She should ask them to step aside and let her mange the estate. From what you say there is no residual estate, so for their 10% all they would have to do is transfer the house to her name, and the bill would either fall on her, or the house would need to be sold to pay their rip off charges.

If they refuse to withdraw, then she needs to raise a complaint through the banks complaints procedure.

Rubik

I agree, 10% is criminal. Out of interest, which bank is this?
If the professional executor doesn't agree to renounce - or if they have already begun work on the estate, then s/he can only be removed via a court order. But...it may cost more to do this than is reasonably viable given the nature of the estate.

The fees for work relating to the estate - including the professional executors fees should be recovered from the estate. If the only money to come out of the estate is from the sale of the house, then the fees should be taken from this BEFORE it is distributed to the GF.

Strad

Natwest bank

Keep_pedalling

Strad wrote: »

Natwest bank

According to this link, the fees are 2.5% not 10, but that is still expensive.

https://personal.natwest.com/content/dam/natwest_com/private-banking/downloads/NW%20estate-admin-tcs.pdf

Brynsam

If the fees are a % of the estate rather than on a time cost basis, this should have been written into the will....was it?

As to your son, daughter and granddaughter coughing up their 'share' of the executor's costs, ask exactly what authority they are relying on in the absence of any contractual relationship between these 3 individuals and the bank.

Strad

My daughter got the percentage wrong but with the fee for the original will, solicitor's fees (additional) initial charge it will be more than 2.5%. However my question was not about that but about whether she will be liable to pay a quarter of the bill from her own pocket as she will inherit nothing. The solicitor appointed by the bank told her she would be expected to pay

Brynsam

Strad wrote: »

The solicitor appointed by the bank told her she would be expected to pay

See my previous answer. How does the bank think they can enforce that one? Your daughter isn't responsible for her father's choice of professional executor. The costs come out of the estate.

Keep_pedalling

Strad wrote: »

My daughter got the percentage wrong but with the fee for the original will, solicitor's fees (additional) initial charge it will be more than 2.5%. However my question was not about that but about whether she will be liable to pay a quarter of the bill from her own pocket as she will inherit nothing. The solicitor appointed by the bank told her she would be expected to pay

Any professional fees come out of the estate, they are not paid directly by the beneficiaries. The exception would be where a house was inherited the beneficiary wanted to keep the house rather than sell it to pay the bill.

Normally the fees would come from the residual estate, but in this case there is no residual estate, so will come entirely from the person inheriting the house.

Strad

That's what I would have expected and so it seems very strange that she was told they would get sent a bill. Thanks anyway

AnotherJoe

If she gets a bill, which will be due to their incompetence since this is simply and utterly wrong, the estate pays as said, she can ignore it.
.