Does a specific cash legacy have to be paid from estate funds?

uknick

Or, can it be paid by the executor from their own pocket?

Everything I've seen says the legacy should come from the estate, but I've never seen anything in the statutes that say the executor can't pay it.

I know this is a strange question, as most people wouldn't care where the cash came from, but in my case there are advantages to have it paid from estate funds.

poppystar

Why would you not pay it from estate funds? If it’s a legacy then that’s where it is paid from. The executor should be keeping estate money separate from their own.

JGB1955

If it's paid from the executors own funds it (presumably) becomes a gift on their part, with all that entails......

uknick

The estate has little cash, mainly property which has to be sold to satisfy the cash legacy.  The executor has dragged their feet over selling the properties and is worried the executor year rules might be enforced.

I think it's a gift, however I'm looking for something legal to support my thinking. 

Brie

if the executor pays ££ from their own pocket then what's to stop the beneficiary stating later on that the estate still owes them the money?  I wouldn't want to be assuming that they wouldn't as money does funny things even to the nicest of us.  

YBR

Perhaps the mechanism you're looking for equates to a loan to the estate to pay a bequest of a fixed-amount of cash? Which is then paid back out of the proceeds of a property sale?
Not sure if this is a legal and proper option though.

uknick

YBR said:

Perhaps the mechanism you're looking for equates to a loan to the estate to pay a bequest of a fixed-amount of cash? Which is then paid back out of the proceeds of a property sale?
Not sure if this is a legal and proper option though.

I'm actually the receiver of the legacy and want the legacy to come directly from the deceased person.  Not via a 3rd party.

I'm not sure there is anything legal to stop the 3rd party from doing what they propose.  But, before I pay for a legal opinion, I thought I'd ask here first.

user1977

uknick said:

YBR said:

Perhaps the mechanism you're looking for equates to a loan to the estate to pay a bequest of a fixed-amount of cash? Which is then paid back out of the proceeds of a property sale?
Not sure if this is a legal and proper option though.

I'm actually the receiver of the legacy and want the legacy to come directly from the deceased person.  Not via a 3rd party.

I'm not sure there is anything legal to stop the 3rd party from doing what they propose.  But, before I pay for a legal opinion, I thought I'd ask here first.

I can't see why it would matter from your point of view. If the executor wants to lend funds to the estate so your legacy can be paid out earlier, that's up to them.

Spendless

uknick said:

YBR said:

Perhaps the mechanism you're looking for equates to a loan to the estate to pay a bequest of a fixed-amount of cash? Which is then paid back out of the proceeds of a property sale?
Not sure if this is a legal and proper option though.

I'm actually the receiver of the legacy and want the legacy to come directly from the deceased person.  Not via a 3rd party.

I'm not sure there is anything legal to stop the 3rd party from doing what they propose.  But, before I pay for a legal opinion, I thought I'd ask here first.

Ok, so the executor has taken their time over selling the properties and using the money from them to pay out the beneficiaries, to the point they're getting worried about someone taking action?? So what the executor wants to do is pay your inheritance out of their own pocket instead.

I'd share your concern - I mean why have they dithered in the first place? There's too many stories on here of executors not doing what they're meant to and rarely if ever a happy ending to those waiting their share. Are there more beneficiaries than yourself and what do they think? 

Keep_pedalling

I see no problem with this, it is not a gift more like a loan to the estate which is short of liquid assets. The executor will be paid back on the sale of the property.

I can’t for the life of me think why this is a problem for the beneficiary.

uknick

Keep_pedalling said:

I see no problem with this, it is not a gift more like a loan to the estate which is short of liquid assets. The executor will be paid back on the sale of the property.

I can’t for the life of me think why this is a problem for the beneficiary.

In my particular case there could be, as my interests will be best served by the executor having to sell one of the properties to pay the legacy.  There is more detail behind the reason for my question but, none of that is really relevant to the answer as to whether the law states who must pay the legacy.

I don't think it does, but before I spend another £300 or so with my solicitor by asking the question, I thought I'd first put it here in case someone had come across the issue before.