Bank Funds

charliefarns62

Just about to post off completed Probate and IHT 205 forms relating to my late mothers will and would be very grateful for an answer or advice on this one query - Santander and Barclays have both released and transferred funds to a nominated separate HSBC account I had already in place. There was no need to show grant of probate for these transfers as both amounts are just below their threshold for this. I am using these funds for estate and ongoing property costs (the property will be sold in due course), am I allowed to make interim payments to the beneficiaries from this account before I receive probate as none was needed to receive them? The terms of the will are five way share including my own. I will hold sufficient funds back for outstanding bills and house-selling costs. Thanks for any help

badger09

charliefarns62 wrote: »

Just about to post off completed Probate and IHT 205 forms relating to my late mothers will and would be very grateful for an answer or advice on this one query - Santander and Barclays have both released and transferred funds to a nominated separate HSBC account I had already in place. There was no need to show grant of probate for these transfers as both amounts are just below their threshold for this. I am using these funds for estate and ongoing property costs (the property will be sold in due course), am I allowed to make interim payments to the beneficiaries from this account before I receive probate as none was needed to receive them? The terms of the will are five way share including my own. I will hold sufficient funds back for outstanding bills and house-selling costs. Thanks for any help

Having acted very recently as executor of my late sister's estate, there is no way I would have made an interim distribution prior to receiving Grant of Probate, despite having the funds to do so.

SevenOfNine

Agree with badger09. We did make interim payments (middle of last year) but only AFTER probate was granted. Quote below from quick search states...........

"The grant is a legal document which confirms that the executor has the authority to deal with the deceased person's assets (property, money and belongings)".

Flugelhorn

The probate shouldn't take too long to come through, better to wait before distributing any funds

Yorkshireman99

charliefarns62 wrote: »

Just about to post off completed Probate and IHT 205 forms relating to my late mothers will and would be very grateful for an answer or advice on this one query - Santander and Barclays have both released and transferred funds to a nominated separate HSBC account I had already in place. There was no need to show grant of probate for these transfers as both amounts are just below their threshold for this. I am using these funds for estate and ongoing property costs (the property will be sold in due course), am I allowed to make interim payments to the beneficiaries from this account before I receive probate as none was needed to receive them? The terms of the will are five way share including my own. I will hold sufficient funds back for outstanding bills and house-selling costs. Thanks for any help

Very unwise to do an interim distribution before you have probate as you have no authority until then. In any case interim distribution be only made if long delays are expected or for exceptional needs.You will be personally liable if anything goes wrong. Small payments MAY be OK but they are still at your risk.

charliefarns62

Thank you for all your replies - will certainly take on board what you say and wait until the probate is granted.

badger09

The estate I was distributing was over £400k.

After I received Probate I saw no point making 2 beneficiaries wait until house sale completed for their inheritance, particularly as one was in the process of buying their first home. I distributed the bulk of the cash, retaining more than enough for any contingencies.

Proceeds from house sale were distributed immediately on receipt, and the final balance 2 months later.

hivoodoodoll

I am currently waiting for grant of probate to come through but was wondering if anyone could tell me if banks (Barclays) or building society (natiOnwide) would pay into the account that I have set up for my mothers estate before having the grant of probate. Someone mentioned a transfer threshold but I’m not quite sure what this is. The only reason I ask is because my sisters are wanting to pay the solicitor as soon as possible and I’m thinking that if we have to wait for the grant of probate it will be over the 30 days expected to pay the solicitors bill.

Voyager2002

hivoodoodoll wrote: »

I am currently waiting for grant of probate to come through but was wondering if anyone could tell me if banks (Barclays) or building society (natiOnwide) would pay into the account that I have set up for my mothers estate before having the grant of probate. Someone mentioned a transfer threshold but I’m not quite sure what this is. The only reason I ask is because my sisters are wanting to pay the solicitor as soon as possible and I’m thinking that if we have to wait for the grant of probate it will be over the 30 days expected to pay the solicitors bill.

Most banks allow payments from the deceased's account to meet funeral expenses and related matters before probate has been granted. It is worth asking whether a similar arrangement can be made for the solicitor's bill.

badmemory

The solicitors should be well aware that moneys will not be available until after the grant of probate, so this should not be a problem unless the bill is unrelated to the deceased.

charliefarns62

Just a quick reply with my recent experience - Santander had a 'probate limit' of £50,000 (total of ALL accounts) The transfer to a nominated account needing only death certificate, copy of will and other ID was completed smoothly by my local branch, money transferred within 3 days, so impressed. Barclays limit is £20,000, taking longer as forms completed in-branch are sent to Bereavement Dept in Leicester, same paperwork as Santander. Other banks may well differ in the limit. Using money for expenses, keeping meticulous records of course.