Interim payment on inheritance

Eek_Bears

I’m the executor for my mums estate and we are in the process of collecting up bank account funds etc but won’t be done for a while as we are waiting probate for her largest account. 

One of my siblings is very short of cash and wants an interim payment on the inheritance she is due. We’ve collected enough together from mum’s smaller bank accounts that I could hand out a few thousand to each sibling. Is this a terrible idea?

Mojisola

Eek_Bears said:

I’m the executor for my mums estate and we are in the process of collecting up bank account funds etc but won’t be done for a while as we are waiting probate for her largest account. 

One of my siblings is very short of cash and wants an interim payment on the inheritance she is due. We’ve collected enough together from mum’s smaller bank accounts that I could hand out a few thousand to each sibling. Is this a terrible idea?

No, but if only one needs the money urgently, why not just give that one an interim payment?

kipsterno1

Its not a terrible idea but it would be wise to budget for unexpected experiences the estate might be faced with. My example of this is having had the house sale fall through I may well now have to cover council tax payments and last week the boiler packed in.

Savvy_Sue

You know your siblings: if it is just the one who needs it, no reason to give something to all of them, BUT when I was co-executing we did do interim distributions evenly - I don't think any of them would have gone "that's not fair" if we hadn't, but it seemed sensible. Plus although I thought I knew which of them were OK moneywise and which weren't, it's not a regular topic of family conversation, and I certainly don't want to assume that I'm right. 

And it made my life simpler to treat them all equally rather than having to remember that Fred had this much, and Archie's had nothing. 

Marcon

Eek_Bears said:

I’m the executor for my mums estate and we are in the process of collecting up bank account funds etc but won’t be done for a while as we are waiting probate for her largest account. 

One of my siblings is very short of cash and wants an interim payment on the inheritance she is due. We’ve collected enough together from mum’s smaller bank accounts that I could hand out a few thousand to each sibling. Is this a terrible idea?

It depends how sure you are that there aren't going to be unexpected bills/creditors popping up as things progress. If you are confident that your mum's affairs are straightforward and it's just a matter of time to wend your way through the whole process, then it may be a perfectly reasonable idea - but dishing out cash even before probate has been granted is always a risk. If you are happy that it's a small risk, and one worth taking, go ahead.

Ms_Chocaholic

It depends on the approximate value of the estate versus how much the sibling wants as an interim payment, what is that likely to be in percentage terms? Obviously if a low percentage then it will be okay but if its over 60-70% I'd be less reluctant.

Thrugelmir

If interim payments are made will it leave you with sufficient funds to meet any Estate costs and expenses? 

DancingBadger

Whatever you decide to do, at all costs keep records of any monies paid out and supporting evidence...just in case.  Even the nicest people can turn where money is concerned.

SevenOfNine

I gave an interim payment to all 5 beneficiaries. Also chose to give them a copy of the accounts as they were at that point, because I had no plans to give any more until the estate was wrapped up fully, & they could see how much was still in a/c to pay for things, which was several thousand & if anyone had asked for more the answer would have been a resounding NO.

Personally, I'd treat ALL the beneficiaries exactly the same, give to one, give to them all. Inheritance is a gift & it can be surprising how many people see £££ before their eyes when the word "beneficiary" is said, & suddenly want it NOW!

Mojisola

SevenOfNine said:

Personally, I'd treat ALL the beneficiaries exactly the same, give to one, give to them all. Inheritance is a gift & it can be surprising how many people see £££ before their eyes when the word "beneficiary" is said, & suddenly want it NOW!

I had one beneficiary who had an urgent need for some cash - I asked the others if they were okay with that person getting an interim payment and whether they wanted a matched share but they all agreed to wait.

Username03725

Same here; one sibling had an unexpected large bill before probate was complete, so I got agreement from us all that one could have an advance payment, with the necessary adjustment when the final allocations were made. As long as everyone involved is ok with it and it's done in an open transparent manner there shouldn't be any issues arising.