Advance Residual Beneficiary Payment

sheffix2

Currently I'm at the stage where probate has been granted and awaiting sale of house. Pecuniary beneficiaries have been paid out. I am the executor and 1 of 2 residual beneficiaries. Apart from the house sale I feel sure I have gathered all the assets (mostly savings) & dealt with arising debts. I don't anticipate any future expenses other than those associated with the house.
The other residual beneficiary is asking if I can advance some money so they can help their son with a house purchase deposit. 
This seems reasonable given a significant amount will still remain in the executor account awaiting the sale of Dad's house & final accounting.
Is it acceptable to do this or should I be wary of doing so until the estate is fully finalised?

Flugelhorn

It is up to you (and easier with there only being 2 residual beneficiairies  - if you feel there is enough in the exc account to deal with any future expenses then it would be OK to make an advance payment 

Keep_pedalling

Making an interim payment is fine under these circumstances. 

Marcon

Keep_pedalling said:

Making an interim payment is fine under these circumstances. 

...but document in writing exactly what has happened. It's amazing how quickly memories cloud over!

Keep_pedalling

Marcon said:

Keep_pedalling said:

Making an interim payment is fine under these circumstances. 

...but document in writing exactly what has happened. It's amazing how quickly memories cloud over!

Yes, it needs including in the final estate accounts.

sheffix2

Thanks for your kind responses.
What is the most secure way of transferring a large amount to the beneficiary. I used cheques with the pecuniary beneficiaries but would imagine a bank transfer in the branch is safer in this case?

Keep_pedalling

sheffix2 said:

Thanks for your kind responses.
What is the most secure way of transferring a large amount to the beneficiary. I used cheques with the pecuniary beneficiaries but would imagine a bank transfer in the branch is safer in this case?

I would use on line bank transfer, but if you have never sent him money in the past do a £1 test transfer first to make sure you have not mistyped any of his bank details.

Keep_pedalling

One other thing to suggest for your brother, is that if this inheritance is likely to put his estate into IHT teretory he might like to make this gift through a deed of variation which would avoid the gift needing to rely on the 7 year rule to drop out of his estate. 

BooJewels

I recently did the same where there were 3 residuary beneficiaries and because funds were received quickly after death, in excess of what would be required to finalise the property sale, I distributed in 3 tranches - an initial deposit from cash assets (keeping plenty back for further bills), the specific proportions of the net house sale and a closing amount at the end when I was sure everything was paid and accounted for and I divvied up the remainder.  

What I did do was keep everyone the same and document it clearly with dates in the estate accounts.  So if you do distribute an interim amount to the other beneficiary, give yourself the same relative proportion too.  Just ensure that you leave enough in the estate to cover contingencies.

fdb66

sheffix2 said:

Thanks for your kind responses.
What is the most secure way of transferring a large amount to the beneficiary. I used cheques with the pecuniary beneficiaries but would imagine a bank transfer in the branch is safer in this case?

Just do a transfer from your banking app/online banking. It should check the payee details for you, and you could do a small transfer first and verify that was received before sending the rest.

Grumpy_chap

It would seem to me that the fairest thing to do if the Executor agrees to make an advanced residual beneficiary payment would be to make that to all residual beneficiaries on an equal basis.