Interest due to beneficiary - delay administering estate

cheeryoleary

I have a claim on my Mother's estate through Intestacy. My Father-in-law for whatever reason has not managed to process the estate even though it's been 3 and 1/2 years since my Mother's death; furthermore he is refusing to communicate directly with me. Am I correct in understanding that I am due interest at the BoE Base Rate for the past 2 and 1/2 years? Thank you.

p00hsticks

cheeryoleary said:

I have a claim on my Mother's estate through Intestacy. My Father-in-law for whatever reason has not managed to process the estate even though it's been 3 and 1/2 years since my Mother's death; furthermore he is refusing to communicate directly with me. Am I correct in understanding that I am due interest at the BoE Base Rate for the past 2 and 1/2 years? Thank you.

That's not my understanding, no. What source do you have for that information ?.

P.S. Do you mean step-father rather than father-in-law ?     
 

cheeryoleary

p00hsticks said:

cheeryoleary said:

I have a claim on my Mother's estate through Intestacy. My Father-in-law for whatever reason has not managed to process the estate even though it's been 3 and 1/2 years since my Mother's death; furthermore he is refusing to communicate directly with me. Am I correct in understanding that I am due interest at the BoE Base Rate for the past 2 and 1/2 years? Thank you.

That's not my understanding, no. What source do you have for that information ?.

P.S. Do you mean step-father rather than father-in-law ?     
 

You're right.... step-father. Source for this question is: https://www.lawskills.co.uk/articles/2021/09/interest-on-legacies/ however I'm unsure whether my 'cut' of the estate is a General Legacy, Specific Legacy, or something else.

p00hsticks

cheeryoleary said:

p00hsticks said:

cheeryoleary said:

I have a claim on my Mother's estate through Intestacy. My Father-in-law for whatever reason has not managed to process the estate even though it's been 3 and 1/2 years since my Mother's death; furthermore he is refusing to communicate directly with me. Am I correct in understanding that I am due interest at the BoE Base Rate for the past 2 and 1/2 years? Thank you.

That's not my understanding, no. What source do you have for that information ?.

P.S. Do you mean step-father rather than father-in-law ?     
 

You're right.... step-father. Source for this question is: https://www.lawskills.co.uk/articles/2021/09/interest-on-legacies/ however I'm unsure whether my 'cut' of the estate is a General Legacy, Specific Legacy, or something else.

I have a feeling that this topic has been discussed on the board before, but I can't find a link to the previous thread(s) at the moment.

My query at that time was, assuming that a sum of interest is indeed due, then where is this money to pay the interest supposed to come from ? Until probate is granted there is little an executor can realistically do with the estate - bank and savings accounts are usually frozen, and stock and shares and property cannot be sold or transferred until probate is obtained, so the opportunities to earn any interest or change investments are very limited.  

It's not always possible for even an efficient executor to get the estate wound up within a calendar year of the death - for a start it can take several months to pull together all the financial details in order to apply for probate, and you only need to read these boards to see how long that process itself can take. And if a property then needs to be sold, that extends the timescales further. 

I don't see that an executor can personally be expected to pay interest out of their own pocket - if they did then in their shoes I'd simply step away from the role. And if it comes from the residual estate then I'd suggest that to all intents and purposes it's really a case of accountancy number-juggling, where instead of inheriting a value of £X with no interest you would instead be deemed to have inherited a value of £Y + £Z interest, where X = Y + Z and you are no better off. 

Marcon

cheeryoleary said:

I have a claim on my Mother's estate through Intestacy. My Father-in-law for whatever reason has not managed to process the estate even though it's been 3 and 1/2 years since my Mother's death; furthermore he is refusing to communicate directly with me. 

Any idea how much you might inherit/the overall value of the estate she left? Are you and your stepfather the only beneficiaries? Any idea why he won't communicate? The answer to those questions, particularly the last one, might give some help in deciding how best to try and make progress with this.

Keep_pedalling

Did you mother reside in Scotland? If not are you certain her sole assets exceeded £270k? 

Spendless

I'd have more concern that the estate hasn't been shared out after several years than be concentrating on how much potential interest you've lost out on. I've read several threads over a few years along these lines where a beneficiary hasn't received their share, I've yet to read one that had a happy ending.

Are you absolutely sure you inherit under intestacy rules if your Mum was married ?

https://www.gov.uk/inherits-someone-dies-without-will

cheeryoleary

Mum was married however house was in her name only. Value of estate is £350Kish less expenses. She did leave a will for myself and a sibling however this was invalidated by her marriage. She was the only one listed on the house restristry (England). I get the impression that Step Father thought he was entitled to everything through marriage and perhaps has a bad taste in his mouth realising he will not get 100%. Potentially, he may need to raise funds to cover what he needs to payout, in order to avoid selling the house. I hope I'm due to inherit... the solicitor that has been employed for the past three years has been providing me with limited updates. Probate was granted February 2021 at which time the solicitor remarked 'Once probate is granted we will begin to collect in the remaining assets of the estate, and be in touch with you when we are in a position to distribute.'. No attempt to market the house publicly has been made. 

Keep_pedalling

It is really unfortunate that she failed to make a new will as it does mean your step father inherits the bulk of her estate (only £40k goes to her children).

How much of the estate is taken up by the house? 

Flugelhorn

Keep_pedalling said:

It is really unfortunate that she failed to make a new will as it does mean your step father inherits the bulk of her estate (only £40k goes to her children).

How much of the estate is taken up by the house? 

so 20K each - have you employed a solicitor yourself?

uknick

The law says, if you can show maladministration of the estate has caused late payment to beneficiaries then you can claim interest.  The rate is currently 3.188% starting from when it is agreed the executor year has ended.  The rate is not the Bank of England base rate, rather a rate set by the Courts Funds Office.

The interest, if found to be due, is paid by the adminsitrator/executor not the estate.

A guide to pecuniary legacies and statutory interest | Foot Anstey

 
But, the first thing you have to prove is maladminstration of the estate.  The executor year if exceeded can be used as part of your case but, in today's climate of probate taking more than 6 months in some cases when do you start the year?

How much are you prepared to spend with a solicitor to prove your case?  I've seen a figure of £15k as an example of legal costs to bring such a case.  Can you afford to fund this upfront?  And, don't assume if you win the judge will award costs against the adminstrator/executor.