Inheritance cannot be distributed because one beneficiary wants to wait until he's 65 to get it?

Jack1997

Hi there, after some advice.

My Mum has been waiting a year for her inheritance from her Mum, my Grandmother. Probate was granted last year, but the solicitors told us we must wait a year for her estate to be paid out (note, there was no house needing to be sold etc, my Grandmother had mostly just money in the bank) in case anyone wanted to contest the will. Fine, she waited a year. My Grandmother chose to divide her assets equally between her five children.It's about £21k each.

A year passes. No one contests. Last week she received a letter asking for ID before any payment can be made and stating 'Estate accounts have been submitted to the Executors, and subject to their approval, the Estate can be distributed'. The two executors named are two of my Mum's sisters - my Mum is not. And those two sisters do not talk, so it is all a bit complicated.

My Mum heard today from another family member, *another sister* who isn't an executor, that my Mum's brother, does not want his inheritance for another two years. Because he is on benefits (I assume ESA and housing benefit etc), and if this is the case, the estate cannot be distributed out to any of the other four children until the two years is over and he is ready. Is this likely to be correct or something he can do? Obviously he will get his pension at 65 and wants to continue on his out-of-work payments until then, that is his shrewd plan. One executor named might be OK with this, I know for sure the other one named will not be.

Surely delaying the taking up his share of approximately £21,000 in order to receive benefits is something that will not sit well with the DWP? I am aware of the deprivation of assets, but the issue is this money isn't technically his or his bank. He isn't rejecting the money - just saying he doesn't want it right now and wants to wait until he's 65. And I'm confused why him saying no this share would delay distribution for the other four children.

I'm not entirely sure how the whole thing works and this is a very dysfunctional family where barely any of the siblings can stand talking to each other or do not talk lol. I'm not sure if what my Mum was told today is correct or not so I would like some advice. She's planning on calling the Solicitors on Monday, but is panicking a bit right now lol. Thanks.

chesky

Jack, you should post this on the 'death, funeral and probate' board to get the best information.
But I'm pretty sure that what is proposed is fraud.

Tom99

No it is not correct. There is no reason why the executors cannot pay the four and deal with the 5th beneficiary separately.
It is quite likely he should be declaring this sum now anyway even if it is not in his actual bank account.

badmemory

Also is he sure he will reach state pension age at 65?


I wonder if the solicitors are delaying it because of their charges? If 4 get £21005 if paid out now & the 5th gets £20055 when paid out in 2 years because of any extra charges they could well be looking at a complaint.


The delaying brother is also trusting his family not to report him to DWP, which if the family is feeling that way one at least may report him.

Owain_Moneysaver

for DWP benefits purposes, I think the beneficiary is considered to have received the benefit of his bequest from the date of death, so there will probably already be an overpayment of benefit to be repaid by him.

Quacker

I think your mother should go to a different solicitor and ask them to give the executors 14 days to give her the money she is due. She has satisfied all requirements to the executors so they should pay her. They can pay her separately if they wish but in doing so they will be condoning the misdemeanour with the other relative.


Currently the beneficiary who does not want his money yet is guilty of a failure to notify the DWP and others Council(?) of his change in circumstances. His circumstances changed at least from the time he knew the money was available possibly before.


All the other beneficiaries are equally guilty of perpetuating the potential fraud, especially if they go along with it for another two years and don't take their money. After such a time the DWP quite rightly will take a very dim view and fines will be massive for all concerned.

Savvy_Sue

badmemory wrote: »

Also is he sure he will reach state pension age at 65?

This. I must be about the same age as this chap, and I'm not expecting my pension at 65.

Tom99

Savvy_Sue wrote: »

This. I must be about the same age as this chap, and I'm not expecting my pension at 65.

He would have to be 65 on or before 5th Dec 2018 to get SP on that date, if born a day later on 6th Dec he will wait another 3mts until 6th Mar 2019. If he is 65 on or after 6th Sept 2019 he will have to wait until age 66.

Mojisola

Jack1997 wrote: »

Last week she received a letter asking for ID before any payment can be made and stating 'Estate accounts have been submitted to the Executors, and subject to their approval, the Estate can be distributed'.

There's no reason why all the other legacies can't be distributed now - if one beneficiary wants to delay their inheritance, the executors can keep that money back.

TBagpuss

There is no reason that the estate should not be distributed.

If the executors want to delay then they should be able to distribute the majority, even if they have to hold back a small amount to cover the cost s of dealing with the person who wants to delay (and may be able to delay payment, if he refuses to provide ID or bank details to allow the to make the payment to him)

The brother will need to declare his inheritance whether he receives it or not,it's his money, regardless of whose bank account it is in.

If the solicitors are not aware of the reason for the delay it may be appropriate to let them know, and for your mum to be explicit about not consenting to any delay . The executors should not be prioritising one beneficiaries interests over the others, or facilitating your partner's uncle in committing benefit fraud.

ETA - if uncle is over 60, I think he can have £10,000 rather than £6,000 disregarded, so he would be able to keep a significant proportion of the inheritance in any event.