Division of money from Mum and Dad's estate

Hi there,

We are coming to the end of sorting out my parents’ estate, and there is a final amount of money that needs to be divided between me and my sister.

There is £5000 pounds to be split 50/50 between us. However, I have some expenses I have incurred against the estate amounting to £1000.

Can someone help us out here and explain the calculation we need to apply and the amounts each of will receive.

Thank you. James.


Comments

  • The_Unready
    The_Unready Posts: 595
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    edited 25 October 2023 at 10:19AM
    Is it not as simple as £5k minus estate costs (£1k paid to you) and the remaining £4k split between you, so £2k each? So £3k for you in total, £2k for your sister. Or have I missed something?
  • BooJewels
    BooJewels Posts: 2,714
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    All expenses are paid from the estate before any final distribution (assuming you have receipts etc and any other executor accepts the expenditure as legitimate).  The distribution should be the very last transaction.

    So you have £5,000 in the estate, the estate reimburses you the £1,000 first - leaving £4,000 as the balance in the estate.  Then that remaining balance of £4,000 is distributed according to the terms of the Will to you and your sister 50/50 - i.e. £2,000 each.

    All of the expenses you've incurred should be documented in the estate accounts you draw up for any residuary beneficiaries - i.e. you and your sister.
  • Sea_Shell
    Sea_Shell Posts: 9,209
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    edited 25 October 2023 at 10:42AM
    As others have said, expenses are deducted first.  You split the remainder.

    However, does you sister know that expenses have accrued, or is this going to come as a shock?

    Have you kept her in the loop?

    Are these legitimate costs?  Eg not for your "time".

    Do you think she'll make a fuss over £500?
    How's it going, AKA, Nutwatch? - 12 month spends to date = 2.57% of current retirement "pot" (as at end January 2024)
  • JosephK
    JosephK Posts: 225
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    Deduct legitimate expenses first - have you kept receipts or some form of evidence? Then split remaining balance
  • Brie
    Brie Posts: 9,281
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    Is your sister questioning the legitimacy of the expenses?  (it happens a lot - as I well know)

    As long as they are reasonable they should be deducted first as others have said and the 50/50 split on the rest.
    "Never retract, never explain, never apologise; get things done and let them howl.”
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