What costs should be covered by estate cash account during settlement of affairs

clarabow99

Sadly our widowed dad passed away on 29/5/20, his will which we have a copy of states that the estate (cash, a property, shares) is to be divided equally between 3 siblings who are all named as executors.
Current status with cash is that the bank account balances of around 25k are in the process of being transferred to a new current account created by myself to hold all the cash.  Due to covid I wasn't able to create an executor account. Other 2 siblings agreeable with it being in my name only.
I'm in Scotland and don't have Confirmation (probate) yet, I'm still trying to appoint someone, possibly the Bank estates management. The property value is maybe 250k.
Question is this:  what costs and expenses can legally be reimbursed from the cash account during the 2 phases when Confirmation not yet in place; or after Confirmation but before settlement.
So if costs are incurred personally, for example dad's property is 200 miles away from 2 of us which means several journeys and petrol money. 
It's also not habitable at the moment which means cost for accommodation (aware of covid rules).  Might mean a tent in the garden!
One of us lives abroad - should the cash account pay for the flights. 
We need to pay for the cremation.
We want to place notices in the newspapers.
The property is to be sold and proceeds to the estate but it needs essential repairs to the electrics, new front door which is damaged, new window etc. 
In the absence of an advisor for now, I just want to make sure that we're not doing anything illegal as we're about to get the front door replaced.  This means my brother will have petrol money costs. 
I'm mindful of a phrase I saw somewhere that "debts and debtors" come first.  In terms of IHT and HMRC I doubt we'll reach the 325k mark for the value of the estate. 
Very grateful for any guidance.
Claire

Brynsam

If you are sure that the estate is solvent (i.e. assets exceed any liabilities), there isn't going to be any IHT payable and the three executors are also the only 3 beneficiaries, it's really for the 3 of you to agree how this is all going to be handled. Best to document it by e-mail to ensure everyone is clear about what is agreed and when.

Flugelhorn

Brynsam said:

If you are sure that the estate is solvent (i.e. assets exceed any liabilities), there isn't going to be any IHT payable and the three executors are also the only 3 beneficiaries, it's really for the 3 of you to agree how this is all going to be handled. Best to document it by e-mail to ensure everyone is clear about what is agreed and when.

Agree this is basically it - hopefully you all get on and can agree on the sorts of money that are involved eg notices in the paper, funeral etc. 
re travel - anything that is paid out for this ultimately will come out of the whole estate so you will each be paying a third of any costs claimed, if you get on OK then you won't want anyone to be struggling with costs. 
When I was handling an estate before probate, the sorts of things I paid out were : re-insuring the house, the funeral costs ie cremation / service / notices / reception, certificates, the gardener, the water bill (though often they will wait for these). 

Keep_pedalling

If you want to minimise expenses do not appoint a bank to wind up the estate it is about the the most expensive option you can take.

Flugelhorn

Keep_pedalling said:

If you want to minimise expenses do not appoint a bank to wind up the estate it is about the the most expensive option you can take.

agree if there are 3 beneficiaries and the estate is not complicated then better to do it yourself

Owain_Moneysaver

And even if a solicitor is needed for the actual grant of confirmation (it sounds more awkward than the English grant of probate) if you can present the solicitor with all the forms completed and ready for 'doquetting' it will save a lot on fees. 
A Bank will appoint a form of solicitors (at full city commercial rates) and then put their own management fee on top. 

Gers

https://www.scotcourts.gov.uk/taking-action/dealing-with-a-deceased's-estate-in-scotland

I would agree about not engaging banks or solicitors to do this unless the estate is very complicated.  There's a very helpful and knowlegable poster around this forum, with a bit of luck he'll pop in to offer his advice.

Mojisola

As long as the three of you are happy with how your inheritance is spent, that's all that matters in this case.

With your executors' hats on, get something down on paper saying that you all agree that more expenses than usual will be paid from the estate - you could list the expected ones such as travel from abroad and perhaps decide that any costs over a certain amount must be run past the other two before spending out. 

Everything may go smoothly between the three of you but getting it down on paper could prevent arguments in the future.  People can behave in unexpected ways during the grieving process so thinking that you three would never disagree may not be true over the next year.

badmemory

Do check that your father did not claim any means tested benefits as when the DWP see the probate value of the estate they may try to say he should not have been claiming as he had too much cash.   You just need to contact them & tell them it is the house value - but receiving the letter can be a little scary!