Sale of inherited house money

hubb

My late mum's house is currently on the market and I hopefully will inherit around 160K to divi between family members as sole executor. What advice can anyone give for a best type of account to store the money in that could earn us all a bit of interest while fees etc are taken out ? I already have about 16K in savings that was in a Santander 123 account but that has now been turned into a lite as the rates fell too low. I will be adding my share of the inheritance to that (estimated at around 20K) so would appreciate any advice as I have never dealt with this much money in my life, and probably won't again.

Having said that, I would still rather have my mum around.
Thanks

badger09

hubb said:

My late mum's house is currently on the market and I hopefully will inherit around 160K to divi between family members as sole executor. What advice can anyone give for a best type of account to store the money in that could earn us all a bit of interest while fees etc are taken out ? I already have about 16K in savings that was in a Santander 123 account but that has now been turned into a lite as the rates fell too low. I will be adding my share of the inheritance to that (estimated at around 20K) so would appreciate any advice as I have never dealt with this much money in my life, and probably won't again.

Having said that, I would still rather have my mum around.
Thanks

Condolences on your loss.

If you are the sole executor you won't 'inherit around 160K to divi between family members', you will receive the sale proceeds from the solicitor dealing with the sale, and distribute them, and any other assets, in accordance with your late mum's will.

Usual practice would be to set up a new bank account when you start administering the estate, so that you can keep the estate funds separate from your own money. Have you not already done this? If not, what has happened to money in her bank account(s), pension etc and how have you paid expenses relating to the estate?

Albermarle

hubb said:

My late mum's house is currently on the market and I hopefully will inherit around 160K to divi between family members as sole executor. What advice can anyone give for a best type of account to store the money in that could earn us all a bit of interest while fees etc are taken out ? I already have about 16K in savings that was in a Santander 123 account but that has now been turned into a lite as the rates fell too low. I will be adding my share of the inheritance to that (estimated at around 20K) so would appreciate any advice as I have never dealt with this much money in my life, and probably won't again.

Having said that, I would still rather have my mum around.
Thanks

You seem to be mixing up your role as executor with your personal situation.
As executor you have clear legal responsibilities and as said above you really need to have a separate executors bank account , totally separate from your own accounts . What you later do with your share of the money is a completely separate issue .

Thrugelmir

Executors accounts pay no interest unfortunately. Any interest earnt by the estate will need to be declared on a tax return. 

hubb

Ok, I may have worded it wrong. I contacted the usual Gov "tell it once" to get things tied up, bills settled etc (except "tell it once" failed to inform all parties in their list, which I had to contact myself) Debts. outstanding bills etc come out of my own finances, and her remaining money left in her bank account was transferred to my current account by Halifax. My wife is keeping accounts of all my outgoings (funeral/bills/debts/solicitor fees etc) which will be credited back to me when the house has sold (hopefully) Fortunately I had the foresight to put money away for the last 10 years for this eventuality otherwise I wouldn't have afforded it. I still have time to open a new account for when the house sells but I had no idea that you couldn't earn interest. Why would I have to open an executor's account anyway, surely it's not compulsory ? I would have thought any bank account would suffice.

DiamondLil

If you are executor, you shouldn't pay anything from your own funds ?  All charges -  'funeral/bills/debts/solicitor fees etc', should come from your mother's estate. Hence having the executor account.

Mojisola

hubb said:

Debts. outstanding bills etc come out of my own finances, and her remaining money left in her bank account was transferred to my current account by Halifax. My wife is keeping accounts of all my outgoings (funeral/bills/debts/solicitor fees etc) which will be credited back to me when the house has sold

Why aren't you paying those outgoings from her remaining capital?

You shouldn't be mixing your personal money and estate money in the same account.

Albermarle

Mojisola said:

hubb said:

Debts. outstanding bills etc come out of my own finances, and her remaining money left in her bank account was transferred to my current account by Halifax. My wife is keeping accounts of all my outgoings (funeral/bills/debts/solicitor fees etc) which will be credited back to me when the house has sold

Why aren't you paying those outgoings from her remaining capital?

You shouldn't be mixing your personal money and estate money in the same account.

Exactly - if one of the beneficiaries queried the executor  accounts it could lead to big trouble .

xylophone

Your mother made a will and you have obtained probate?

You should then have been able to open an executor's account into which all monies owed to the estate could be collected.

You would then have made all disbursements from this account (including to yourself for any monies paid on behalf of the estate).

This maintains a complete separation of your personal funds from estate funds.

hubb

Well it doesn't matter as long as her bills are paid, which they now have been. For instance, the funeral bill can't wait until the house has sold. She had a debt also outstanding of almost 4K which I paid, taking her remaining finances into minus. There is a record of her bank account transfer going into mine via Halifax (which they agreed) so it is transparent, nothing to hide. She left the will as sole executor (and only benefactor mentioned in the will) to my discretion to give equal portions to siblings etc which I will carry out fairly. It's a very simple will.

greatcrested

You really have been very slap-happy about your role as Executer.

You shoul have opened an Executer account. Any money relased by your mother's banks etc goes in, and from that you pay the bills: council tax, utilities, insurance on house, mum's credit card/debts etc). There are special rules about accessing the deceased's money to pay funeral expenses, Inheritance Tax etc.

But that's water under the bridge - let's hope no one queries your accounts or management.

As for your question, assuming proate has been granted (which i must have been for the sale to Complete, you can't be anicipating a long delay between receiving the sale money and distributing the Estate assets to the Beneficiaries, so any interest the Estate might earn will be minimal - especially with rates what they currently are!

And of course, the Estate will ten have to pay tax on the interest earned.

So frankly, it really does not matter where you now put the money, provided none of the Beneficiaries query why it's been in your persnal account!