When is it Reasonable to Expect a Partial Distribution of an Estate?

Cloth_of_Gold

I and the person I live with have been left (apart from a couple of small bequests to charities) someone's entire estate. This consisted of savings and investments and a half share of the value of the house that the deceased lived in. The estate is below the inheritance tax threshold and probate was granted in March. In mid June, the Executor (the deceased's solicitor) told me that he now had all the savings and investments, apart from the money in the deceased's current account, which he expected to receive shortly. He also told me that the house, which was only occupied by the deceased, had been sold, subject to contract, by the person who owns the other half and that the buyer was not in a chain. He said that once the proceeds of the sale had been realised half would be paid into the estate and this, plus the deceased's savings, less his fees, etc. would be paid to us. 

Since then we have heard nothing more and I see on the estate agent's website that the house is still showing as being sold subject to contract. I'm slightly surprised that with no chain at either end the sale has not yet completed, although I realise these things can often move quite slowly. I am wondering though if there has been a hitch (perhaps because of the recent rise in interest rates) and the sale might delayed for an extended period or even fall through. The title register at the land registry was not up-to-date at the time of the death but I understand that this can be expedited if necessary so I don't see why that should cause a delay.

I intend to contact the solicitor soon and ask for an update and if things are still moving and the estate is likely to be settled in the next few weeks we are happy to wait. If however, there is likely to be a considerable delay in finalising the house sale for whatever reason, or it has to go back on the market, is it reasonable to request an interim payment of at least some of the savings and investments? If not, do we have to just wait until the house sale has gone through and he has the estate's share of the proceeds so that he can pay everything all at once, however long this takes?

msb1234

You can ask for an interim payment - they can say no. The more work the solicitor has to do, such as replying to your enquiries, the bigger their fees will be!

Cloth_of_Gold

msb1234 said:

You can ask for an interim payment - they can say no. The more work the solicitor has to do, such as replying to your enquiries, the bigger their fees will be!

Naturally I realise that they can say no, my question is whether my request would be a reasonable and normal one to make. There is no point in even asking if the wise people on here advise that the request will not be, or is unlikely to be, granted. The reason I came on here to ask first was because I want to limit the number of times I contact the solicitor so as not to run up any unnecessary fees.

RAS

Based on other posters comments here, solicitors take longer to distribute an estate than amateurs, not least as they will wait for creditors to appear after posting notices, and often want 6 months to elapse to ensure no-one claims under the Inheritance Act. 

Beyond that, making an interim distribution requires two sets of estate accounts to be created. Whether that is a useful use of the estate's money may depend on the relative values. If 90% the estate is in the house, much of the rest could be taken up in fees and other disbursements. If the house is only 20% of the value, it may make sense.

Head over to the house buying and selling forums and you'll find many buyers who weren't in a chain who somehow ended up in one. However, being subject to contract doesn't mean there is a chain, just that the seller is keeping options open in case the sale fails.

msb1234

Is there a reason why you need the money now rather than just wait for it? If so, then you could point this out to the solicitor and see what they say? At least then you’d know the situation. If you also ask when you can expect payment of the full bequest that can be answered in the same correspondence thus saving you extra legal fees. 

Newly_retired

Unless you have an important and urgent need of the money, I would be inclined to wait another month before enquiring. There can be all sorts of good reasons for a delay in completing a house sale/ purchase. The solicitor may also have taken a long summer break. Other complications may have occurred. 

Cloth_of_Gold

Newly_retired said:

Unless you have an important and urgent need of the money, I would be inclined to wait another month before enquiring. There can be all sorts of good reasons for a delay in completing a house sale/ purchase. The solicitor may also have taken a long summer break. Other complications may have occurred. 

Thanks. We don't have an urgent need of the money but it is likely to be a fairly significant sum and if there is going to be a long delay it would be useful to know that so that we can plan accordingly. However, as you suggest, I think I will leave it for a month or so before contacting the solicitor.