Inheritance for a vulnerable adult

Doshwaster

I've just become the executioner of my aunt's estate. The beneficiaries are myself, my brother and a niece on the other side of the family split equally. There are no other close living relatives.

The complication is that my brother has been in hospital for the past few months with mental health problems and is separated (but not divorced) from his wife. I'm just worried that he wouldn't be able to cope with an inheritance of around £50,000 right now but I don't want his wife to get access to it as financial difficulties  (basically, she is a spendaholic ) were part of the cause of his problems. I want it to help him get back on his feet when he is ready and able.

So, is there any way that I can hold back his share of the money until he is (hopefully) capable of dealing with it? Does that need his agreement? Does his wife have a claim on the money?

sassyblue

Technically yes, his inheritance forms part of the matrimonial pot in his divorce, however, he has already separated from his wife…

how long have they been separated? If it’s been months then her divorce lawyer would be interested in trying to argue it’s part of the money to be split, anything longer than say, a year, and his lawyer could argue it’s separate and that the money may not be available to him for a long time, are there any 'issues' over the estate that may benefit him not being paid out for a while (his mental health aside)?

xylophone

I've just become the executioner of my aunt's estate.

Executor....

As  executor, yours is the responsibility to administer the estate - it seems to me that it would be perfectly valid for you to hold your brother's legacy in the executor's account pending his being well enough to be able to discuss with you when and how he wishes it to be paid.

Mojisola

xylophone said:

As  executor, yours is the responsibility to administer the estate - it seems to me that it would be perfectly valid for you to hold your brother's legacy in the executor's account pending his being well enough to be able to discuss with you when and how he wishes it to be paid.

Plus, as the OP says they've only just become the executor, it could be months before the estate is anywhere near being ready for distribution. 

Doshwaster

xylophone said:

I've just become the executioner of my aunt's estate.

Executor....

Woops. Darned auto-correct. For the avoidance of doubt, I don't own a guillotine. 
 

xylophone said:

As  executor, yours is the responsibility to administer the estate - it seems to me that it would be perfectly valid for you to hold your brother's legacy in the executor's account pending his being well enough to be able to discuss with you when and how he wishes it to be paid.

That's my thinking right now. No need for anyone to make any immediate decisions. Let's see what the situation is in 6-9 months or however long the process takes. My sister in law has already, with not much subtly, been asking when the money will be released when my aunt has only been dead 2 weeks.   

xylophone

Lacks subtlety? A euphemism for shows barefaced cheek?  

Mojisola

Doshwaster said:

My sister in law has already, with not much subtly, been asking when the money will be released when my aunt has only been dead 2 weeks.   

The executor doesn't have to keep beneficiaries informed of the progress of the estate - you certainly don't have to tell spouses of beneficiaries anything!

elsien

Does he have capacity around his finances at present? Being in a mental health unit doesn’t preclude that. If he has capacity then you should treat him the same way you do the other beneficiaries. 

What does he want to do? 

Is he on any means tested benefits that may be affected once his share is ready to be paid? 

Marcon

Doshwaster said:

xylophone said:

I've just become the executioner of my aunt's estate.

Executor....

Woops. Darned auto-correct. For the avoidance of doubt, I don't own a guillotine. 
 

xylophone said:

As  executor, yours is the responsibility to administer the estate - it seems to me that it would be perfectly valid for you to hold your brother's legacy in the executor's account pending his being well enough to be able to discuss with you when and how he wishes it to be paid.

That's my thinking right now. No need for anyone to make any immediate decisions. Let's see what the situation is in 6-9 months or however long the process takes. My sister in law has already, with not much subtly, been asking when the money will be released when my aunt has only been dead 2 weeks.   

Things could move very slowly indeed...COVID still having an impact...need to be sure you've done everything right....expect you'll want to advertise in the Gazette and wait several months at some point further down the line....

sassyblue

Marcon said:

Doshwaster said:

xylophone said:

I've just become the executioner of my aunt's estate.

Executor....

Woops. Darned auto-correct. For the avoidance of doubt, I don't own a guillotine. 
 

xylophone said:

As  executor, yours is the responsibility to administer the estate - it seems to me that it would be perfectly valid for you to hold your brother's legacy in the executor's account pending his being well enough to be able to discuss with you when and how he wishes it to be paid.

That's my thinking right now. No need for anyone to make any immediate decisions. Let's see what the situation is in 6-9 months or however long the process takes. My sister in law has already, with not much subtly, been asking when the money will be released when my aunt has only been dead 2 weeks.   

Things could move very slowly indeed...COVID still having an impact...need to be sure you've done everything right....expect you'll want to advertise in the Gazette and wait several months at some point further down the line....

The point I was getting at. No need to tell the wife anything and make sure you take a long time to sort this out, definitely after his divorce……

how long have they been separated OP I can’t see you mentioned it.

TBagpuss

As your sister in law is not a beneficiary under the estate you don't need to tell her anything.

Your brother will need to disclosure the inheritance in order to resolve the financial settlement on divorce, assuming that the separation becomes a divorce. 
However, an inheritance is generally treated a bit differently to other types of assets, especially where it is received after the the parties have separated, and where the money inheritance is not mixed in with family assets but is separate and identifiable. 
His wife may be able to claim more than she would otherwise have had from their joint assets, as his need will be lower than if he had not received the inheritance, and it would be possible for a court to give her a share of the inheritance if satisfied that there was a genuine need on her part , and no other way to meet it, but she would not automatically get a share

There's no rush. You need to get probate sorted out, take time to work out what if any liabilities the estate has and to clear those, and only then distribute the funds. 

Talk to your brother. If he has mental capacity  - and if his capacity fluctuates, it may be worth asking him whether he wants to grant POA to you or another family ember to look after his affairs if he is unable to do so, or indeed to assist him while he has capacity but is unwell.