Distribution of estate

foju2019

Thanks to those who have helped by answering my earlier queries. Dealing with the estate of a family friend.
We have probate, but currently awaiting sale of a property.

We have an executors account to hold funds. It is pointing out to me that the funds in the account are above the value that would be protected by fscs. I would hope that any such event would be unlikely but feel I should do ‘something’. Who knows what Brexit will bring - it may be a while before the property is sold.

What would you do? There should be limited outgoings (house bills, and one final small tax bill).
Would you distribute some of funds to beneficiaries?
Open another account to spread funds?

Advice welcome.
Thank you.

Flugelhorn

There is protection for "temporary high balances" - an estate like this would come under that

Proceeds of a deceased's estate held by their personal representative.

https://www.fscs.org.uk/your-claim/temporary-high-balances/

foju2019

Thanks very much. It’s only for 6 months however which we would be coming towards the end of but guess that gives us a little longer. I just don’t think the property will sell before Christmas now.

Are the other options not advisable?

Mojisola

The beneficiaries could be given a partial inheritance as long as the executors keep back enough to cover all the future costs to do with the estate.

Brynsam

Move some of the cash to savings accounts with other banks if you don't want to distribute anything to the beneficiaries just yet.

Savvy_Sue

Brynsam wrote: »

Move some of the cash to savings accounts with other banks if you don't want to distribute anything to the beneficiaries just yet.

It may be difficult to do that if you want the funds clearly marked as executor accounts, which you do, because if anything happens to the OP then any accounts in their name NOT so marked then the funds look as if they're in their estate.

How much would you have to distribute to get yourself below the limit?

Tom99

Is IHT due? If so have the values been agreed with HMRC, have you received a clearance letter or whatever they call it these days.
Remember if the house later sells for above its agreed probate value there may be CGT to pay on that gain.

badger09

Tom99 wrote: »

Is IHT due? If so have the values been agreed with HMRC, have you received a clearance letter or whatever they call it these days.
Remember if the house later sells for above its agreed probate value there may be CGT to pay on that gain.

Per OP's previous thread, no IHT due (as well below £650k with deceased wife's allowances)

OP, in this situation, I would distribute sufficient to bring the total to below £85k.

getmore4less

Savvy_Sue wrote: »

It may be difficult to do that if you want the funds clearly marked as executor accounts, which you do, because if anything happens to the OP then any accounts in their name NOT so marked then the funds look as if they're in their estate.

How much would you have to distribute to get yourself below the limit?

As long as the funds are documented(preferably ring fenced in their own account) they remain held by the account holder as trustee for the beneficial owners and do not belong to the account holder.

Flugelhorn

other option would be an NS&I account which has no upper limit on protection

t0rt0ise

I would distribute some of it, which is what we did. As long as you keep a record of what has been paid out. We kept a spreadsheet.