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

user1977

uknick said:

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.

So why is that a problem for you? Still don't really understand why you're asking - the estate pays the legacy whenever they have funds to do so. Whether they get those funds from selling an asset or from a loan from an executor isn't really your business - in fact, you don't (I think) have a right to know that sort of detail.

SiliconChip

user1977 said:

uknick said:

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.

- in fact, you don't (I think) have a right to know that sort of detail.

I'd agree with you at the time the payment is made, although when the estate is eventually settled the OP may be able to get the final accounts which might clarify whether the funds came from estate assets or from a temporary loan. Storm in a very small teacup as far as I can see.

Marcon

Spendless said:

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? 

The executor year is a convenient myth. If the properties have been hard to sell, and the executor believes it is in the interests of the estate to delay the sale, there's unlikely to be any successful action a beneficiary can take - especially if the executor has offered to pay out a beneficiary using their own cash by making a loan to the estate (which is what, in practical terms, it amounts to).

Absolutely nothing to stop them doing so and it would prevent any action by the beneficiary in question - their inheritance is cash, and if they get the required amount of cash, exactly what's the beef? You might think your interests are 'best served by the executor selling...' but any complaint would be from other beneficiaries who have yet to receive their inheritance.

user1977

SiliconChip said:

user1977 said:

uknick said:

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.

- in fact, you don't (I think) have a right to know that sort of detail.

I'd agree with you at the time the payment is made, although when the estate is eventually settled the OP may be able to get the final accounts which might clarify whether the funds came from estate assets or from a temporary loan. Storm in a very small teacup as far as I can see.

I think only residuary beneficiaries are entitled to the accounts. If all you're getting is a fixed legacy (and you've received it), why would the rest of the estate be of interest to you?

TBagpuss

As others have said, it's not really your business - if you are due to get a specific cash legacy and you receive that specific cash legacy then how the executors have arranged that, and whether they have loaned money to the estate to enable it to be paid, is a matter for them.

If there are other factors which are relevant then it would be sensible for you to add them so that people can answer the question in context, but as it stands, if you are entitled to a cash legacy and don't have an interest in the property to be sold or the residuary estate than it's really none of your concern as to when or how quickly the property is sold.

uknick

Thanks for all your responses.  You have confirmed what I thought, nobody has come across any legislation dictating where the funds must come from.
 

Marcon

uknick said:

Thanks for all your responses.  You have confirmed what I thought, nobody has come across any legislation dictating where the funds must come from.
 

That's because there isn't any such legislation!

Keep_pedalling

If this is your mother’s estate you refer to in a previous thread, I really can’t see why you would want to put of getting your £50k while it’s real value is decreasing with inflation every day.

uknick

To conclude this, yes there is no legislation I was looking for.

The cash arrived yesterday from the estate's Executor Account.  If I'd known it was coming from there, it was implied it might come from the executor's personal bank account, I wouldn't have wasted your time by asking the question.

When I saw where it came the light suddenly came on in the dim, dark recesses of my mind.  Of course it can come from other sources to the estate.  How else would executors be able to take make use of a Probate Loan?

Again, sorry for being slow on the uptake for this.