Pit falls of doing this 27 May 2022 at 2:31PM in Deaths, funerals & probate 6 replies 522 views

kipsterno1

I know if I am already thinking this might be a bad idea it probably is.

Brief circumstances. Our father passed away last year, there are three siblings and the estate is to be split evenly between us. I will label us A, B and C. I am C and also the executor of the will. All is sorted and the house sale is likely to complete in the next couple of weeks when final bills will be settled and distribution can be sorted. A has been very engaged in the process, B hasn't.

So my issue surrounds a holding of premium bonds within the estate. On death I informed NS&I and elected to leave the bonds in the draw. To date they have won every month with a return of around 1%. I know that there are currently better saving rates to be had but see it as a free hit. I suggested to A and B that we let these ride for the full 12 months and in the meantime I would distribute the rest of the estate. A is happy with this but B doesn't want to get it in 'dribs and drabs.'
How would I stand if I distributed B their full share of the estate but retained the premium bond holding for A and C until the full 12 months? Obviously the share of the estate would include a third of the winning up to date of distribution. How would A and C fair in relation to any winnings after B had received their third?

As I say I'm thinking it could be a bad idea and if the bonds were to have a significant win could cause all sorts of tension.

Has anyone done this previously or have any thoughts/advice? 

Mojisola

If there are any winnings, divide them by three. 
While the bonds are still part of the estate, all three beneficiaries are entitled to their share. 

JGB1955

Personally I would do as you have suggested.  B has shown no interest in receiving any PB prize after the distribution date, so can't complain about any future prizes being shared between A and C. 

Brie

Sounds like you know that B will complain no matter what you do so I'd draw up a note that explains exactly how things are being split and say please respond by X.  And if you don't respond I'll assume you agree.  That way B has the chance to respond but your tush is covered if they don't.

msb1234

Personally, I’d cash them in then buy your own if you wish. Just because they’ve existed for a number of years, it doesn’t mean you’re more likely to win!

Marcon

kipsterno1 said:

I know if I am already thinking this might be a bad idea it probably is.

Brief circumstances. Our father passed away last year, there are three siblings and the estate is to be split evenly between us. I will label us A, B and C. I am C and also the executor of the will. All is sorted and the house sale is likely to complete in the next couple of weeks when final bills will be settled and distribution can be sorted. A has been very engaged in the process, B hasn't.

So my issue surrounds a holding of premium bonds within the estate. On death I informed NS&I and elected to leave the bonds in the draw. To date they have won every month with a return of around 1%. I know that there are currently better saving rates to be had but see it as a free hit. I suggested to A and B that we let these ride for the full 12 months and in the meantime I would distribute the rest of the estate. A is happy with this but B doesn't want to get it in 'dribs and drabs.'
How would I stand if I distributed B their full share of the estate but retained the premium bond holding for A and C until the full 12 months? Obviously the share of the estate would include a third of the winning up to date of distribution. How would A and C fair in relation to any winnings after B had received their third?

As I say I'm thinking it could be a bad idea and if the bonds were to have a significant win could cause all sorts of tension.

Has anyone done this previously or have any thoughts/advice? 

Your feeling that it's a bad idea is the correct feeling! As executor, you take the decisions, so either tell B that's what is going to happen; or tell A that you will be encashing the bonds and, as suggested already, A can buy premium bonds for themself if they wish (if they already have the maximum holding, too bad!).

kipsterno1

Thanks for your input I appreciate the responses.

I think I started knowing the answer. B could be awkward whatever I do. As they will still form part of the estate I think I will cash them in after the house has sold and just do one distribution.