Executing a will - what to do with money before paying beneficiaries

DrPips

Hi, I’m currently in the process of executing a will. I have a grant of probate and can now close the bank accounts but there’s also a house to sell which obviously could take some time, so I’m not in a position to pay the beneficiaries of the will yet.

my question is what should I do with the money until the house has sold. It’s about £140,000.  Should I put it in an easy access savings account or something like that?

Thanks

MorningcoffeeIV

You could do. Or you could do a partial distribution.

phillw

DrPips said:

my question is what should I do with the money until the house has sold. It’s about £140,000.  Should I put it in an easy access savings account or something like that?

Any interest is going to cause you some tax implications. Make sure you account for that...

A 30 day notice account might give slightly better interest and if you aren't going to access it until the house has sold, then you probably will know 30 days in advance.

Bobziz

I'd probably just leave the money where it is, or as above do a partial distribution.

xylophone

Are you able to open an executor's account?

https://www.gov.uk/probate-estate

See

https://supportcentre.natwest.com/Dealing-with-difficult-times/Bereavement/913244482/What-is-an-executor-account.htm


https://www.barclays.co.uk/what-to-do-when-someone-dies/support/


You can then transfer all monies to this account and have proceeds of sale of the house credited to this account.

Having all the money in one place ( and not part of any personal account) makes life much easier.

Linton

tbh I would not bother to get any interest. Just keep it in cash and distribute it asap. AIUI all such income received by the estate after death is taxable at 20% which is hassle an executor does not need.

badger09

I agree with those who say do a partial distribution, assuming it’s a straightforward Estate. Beneficiaries might as well have it sooner rather than later, and it avoids such a large sum languishing in a 0% interest account or the hassle of accounting for tax. 

Keep_pedalling

Just keep enough back to cover any expenses associated with house and distribute the rest.

Albermarle

Having all the money in one place ( and not part of any personal account) makes life much easier.

It also avoids any accusations by any third party, that you are mixing up your money and the estate proceedings.

droopsnoot

xylophone said:

Are you able to open an executor's account?

Oh, I hadn't realised there was such a thing. When I had to do similar I just opened another current account at my bank, and stuck it in there. Interest wasn't an issue because they don't pay any, but this was a much smaller amount.

Keep_pedalling

droopsnoot said:

xylophone said:

Are you able to open an executor's account?

Oh, I hadn't realised there was such a thing. When I had to do similar I just opened another current account at my bank, and stuck it in there. Interest wasn't an issue because they don't pay any, but this was a much smaller amount.

There is such a thing, but finding a bank that will offer you one is not always that easy.