Probate - distributing to beneficiares before all funds in

oddquerydotcom

Hi all,

I'm asking this on behalf of a friend so please bear with me.

Her husband sadly passed away suddenly and she is now having to deal with the probate element. She has obtained the grant of probate and has set up an executors account to deal with the finances. Her husband had a joint share in his old family home after his own mother passed away (25%, roughly worth 50k, wholly owned, no mortgage). He didn't have a huge amount of assets so even with this included in the tax calculations she is still under the nil rate band.  

She is eager to settle her mortgage on her home with young children to think of. She would rather pay off the mortgage as soon as possible (personal choice of hers), and she has two opportunities per annum to make a larger lump sum repayment. She wants to make one this week. But is asking, does she have to wait for the sale of the property that her husband was a part owner of? In terms of probate, is it something she has to wait for before she can start using the proceeds of his estate to do? She is the named owner of this house. She intends to put it into trust eventually for her kids so wants it paid off for them as soon as. 

Thank you SO much for any tips or guidance you can offer.

Flugelhorn

Is she the only beneficiary?  If so then it is really up to her how and when she uses the funds so long as she has some kept back to deal with unexpected debts 

p00hsticks

oddquerydotcom said:

 does she have to wait for the sale of the property that her husband was a part owner of?

Apologies if I'm misunderstanding, but you say he had few assets other than this 25% share in a property, so I'm not following where the money to pay off the mortgage would come from prior to the house being sold ? 

SiliconChip

I'd agree with @Flugelhorn (but taking into account what @p00hsticks says), I made an interim payment to beneficiaries from my mum's estate using money from savings accounts then paid out the balance when her house was sold. Please bear in mind that if there are other beneficiaries they must all be treated the same unless they agree otherwise.

I'd also suggest that your friend seek advice (on here will be a good starting point, but please get her to post herself, second hand information is very frustrating) about the plan to put the house into trust, this rarely achieves what it sets out to do.

SVaz

1.  Why on earth did she set up an executor’s account ?  Presumably everything now belongs  to her anyway. 

2. Putting her home in trust - Why?   There are so many things that could go wrong with this.   

Was her husband not a joint owner of their home? 

I’m assuming Life insurance is enabling the mortgage to be settled,  which is hopefully written in trust and is outside the estate. 

It sounds like CGT will be payable on the other property though.