Using money from probate for deposit

badger09

Is the inheritance you're expecting already in the form of cash? Or is there a property involved, which has to be sold before the Estate can be distributed?

If it is cash, then I see no problem if you want to start looking online for a property to buy. However, no Estate Agent or vendor will take you seriously until you can show you have the funds and a mortgage in principle.  

Megancomping

badger09 said:

Is the inheritance you're expecting already in the form of cash? Or is there a property involved, which has to be sold before the Estate can be distributed?

If it is cash, then I see no problem if you want to start looking online for a property to buy. However, no Estate Agent or vendor will take you seriously until you can show you have the funds and a mortgage in principle.  

Hi it’s in the form of cash for myself, there is a property involved but that’s going to my dad not to me. I’ve got a mortgage in principle however just awaiting the funds from probate. I’m not sure if the property has the be sold before the funds can be distributed but I don’t inherit the property side of things anyway x

macman

There can be an initial distribution of the cash while awaiting sale, but the executor must retain sufficient funds to cover any ongoing expenses until the estate is wound up.

eddddy

Megancomping said:

badger09 said:

Is the inheritance you're expecting already in the form of cash? Or is there a property involved, which has to be sold before the Estate can be distributed?

If it is cash, then I see no problem if you want to start looking online for a property to buy. However, no Estate Agent or vendor will take you seriously until you can show you have the funds and a mortgage in principle.  

Hi it’s in the form of cash for myself, there is a property involved but that’s going to my dad not to me. I’ve got a mortgage in principle however just awaiting the funds from probate. I’m not sure if the property has the be sold before the funds can be distributed but I don’t inherit the property side of things anyway x

If you make an offer on a property and it's accepted, the estate agent will ask to see your bank statements showing that you have the deposit (and your mortgage AIP).

If you don't have the money in your bank account (because the funds haven't arrived from probate), the estate agent will probably advise the seller to put the property back on the market, until you do have the money in your account.

So there's probably no benefit in making an offer until the money is in your account.

(But I guess you could double check that with the estate agent before making an offer - because if the seller accepts your offer and then finds out the money isn't in your bank, they might be a bit angry/disappointed.)

Shobby

Having recently been a sole executor who applied for probate online without a solicitors help, even in the most straightforward of circumstances and even when probate has been granted, it takes time for the executor to wind up bank accounts etc. and distribute the estate to the beneficiaries. I can see why most people use Solicitors to do it, but I actually found it an ok process, but then I quite like filling out forms! If the executor is an individual ( potentially more complex if there is more than one person) they sometimes open a separate executor bank account to deal with the funds as they come in and distribute them from that.

I would check with the executor of the estate and see how far along the probate process they actually are; even once the figures are submitted it has to go before a court before it’s granted (which can be anywhere in the Country) and the current pandemic might delay this so as others have said getting probate granted could take months or longer particularly if any of the figures are contested....this uncertainty will probably not be appreciated by an potential lenders until your inheritance is safely in your own vaults! 

badger09

Megancomping said:

badger09 said:

Is the inheritance you're expecting already in the form of cash? Or is there a property involved, which has to be sold before the Estate can be distributed?

If it is cash, then I see no problem if you want to start looking online for a property to buy. However, no Estate Agent or vendor will take you seriously until you can show you have the funds and a mortgage in principle.  

Hi it’s in the form of cash for myself, there is a property involved but that’s going to my dad not to me. I’ve got a mortgage in principle however just awaiting the funds from probate. I’m not sure if the property has the be sold before the funds can be distributed but I don’t inherit the property side of things anyway x

As macman has implied, this is a decision for the executor. If executor is family member, you could ask their opinion about initial distribution.

When I was executor for close relative a couple of years ago, I made several equal cash distributions to the 2 family beneficiaries shortly after receiving Probate because there was plenty of cash available . When the house was sold, I distributed the sale proceeds, retaining a few £00s until I was satisfied everything had been paid. Then I shared that out & closed the account.