Probate granted - one executor delay tactics

Newly_retired

You don't say how much there is in savings and other accounts, but it is perfectly possible to make an interim distribution, provided there is more than sufficient left for ongoing debts, bills and costs. It can certainly be a long drawn out battle with the DWP if they come into the picture, but Pension Credit sounds unlikely in your case.

longwalks1

doodling said:

Hi,
Legally, the executors could have distributed the contents of the bank accounts the second after the death if the bank would release the money to them.  The executors authority comes from the will, not from probate, which effectively provides a warranty as to what the will is and who the executors are (and provides a hook for HMRC to ensure they get whatever cut they are due).

There is however a practical consideration - the executors need to have on hand sufficient cash to meet the liabilities of the estate (or they would have to reach into their own pockets).  This means that sufficient cash should be retained by the executors to pay for all the stuff you list and any other costs which might come up before the estate is wound up - house clearance costs, insurance, repairs, paying a gardener to keep the place looking nice whilst you are trying to sell it, any up front costs for a conveyancer for the sale, etc. etc. etc.

it isn't clear how much cash is in the estate compared to those prospective costs, if there is a massive surplus of cash then an interim distribution to beneficiaries may be justified, if things are a little tighter then it might not.

Hi Doodling
we completed IHT forms and no IHT to pay, we had to use father in laws unused allowed from when he passed 10 years ago.  So hopefully HMRC will stay well away. 

The 4 accounts (current, savings, ISA and the life insurance policy) each have more than enough in them to keep the house going for years.

we were thinking of leaving £4000 or £6000 in an account to cover all house costs, which should be more than enough, and distribute the rest as per mums wishes now we have probate.

our headache is going to be convincing one of the other 2 executors this makes sense, because at present he seems almost frightened to distribute the accounts as per the will.

longwalks1

Marcon said:

Buildings insurance is the crucial one. 

Hi Marcon
buildings insurance is still running and is paid up til April ‘24 at present.  Will renew it if the house hasn’t sold by then.

longwalks1

Jowwie said:

I can appreciate the concern of one of the executors. There is guidance out there suggesting you should be waiting six months after probate has been granted before distributions.

Were any means tested benefits being claimed by your mum such as pension credit? In our case we have a DWP investigation into the estate which did not start until a few weeks after probate was granted. We have now been waiting even longer for DWP than we had to for the probate department. No distributions can be made until this completes.

Hi Jowwie
no means tested benefits were being claimed by mum so hopefully no need for DWP to get involved.  Still getting over the headache of the inheritance tax forms!  

I feel for you waiting on DWP, probably no real way of chasing them and working to their own timescale 

longwalks1

We’ve had another chat with the 3rd executor, he’s now saying everything should stay as it is until the house is sold because it would mean searching for new home insurance when mums currently expires (April ‘24) whereas it will automatically renew if everything stays as is.

and that a new account (with new account number/sort code) will cause all sorts of problems with utility companies and direct debits that are currently in place.

as for the possible zero-rate council tax if offered by Hertfordshire council, he doesn’t want to ask in case it’s granted and then someone comes to the house to check and catches him clearing the garage or mowing the lawn.  

Frustrating 

Keep_pedalling

longwalks1 said:

We’ve had another chat with the 3rd executor, he’s now saying everything should stay as it is until the house is sold because it would mean searching for new home insurance when mums currently expires (April ‘24) whereas it will automatically renew if everything stays as is.

and that a new account (with new account number/sort code) will cause all sorts of problems with utility companies and direct debits that are currently in place.

as for the possible zero-rate council tax if offered by Hertfordshire council, he doesn’t want to ask in case it’s granted and then someone comes to the house to check and catches him clearing the garage or mowing the lawn.  

Frustrating 

Have you actually informed the insurance company of her death? The insurance may auto renew but it will almost certainly be invalid if you have to make a claim.

Please ignore your idiot sibling, inform the bank, insurance company and the LA that will force the issue with them.

Hoenir

longwalks1 said:

We’ve had another chat with the 3rd executor, he’s now saying everything should stay as it is until the house is sold because it would mean searching for new home insurance when mums currently expires (April ‘24) whereas it will automatically renew if everything stays as is.

and that a new account (with new account number/sort code) will cause all sorts of problems with utility companies and direct debits that are currently in place.

as for the possible zero-rate council tax if offered by Hertfordshire council, he doesn’t want to ask in case it’s granted and then someone comes to the house to check and catches him clearing the garage or mowing the lawn.  

Frustrating 

Sounds as if there has been a complete lack of action. Not the role of an executor. Has anybody been informed of the death? 

km1500

longwalks1 said:

Marcon said:

Buildings insurance is the crucial one. 

Hi Marcon
buildings insurance is still running and is paid up til April ‘24 at present.  Will renew it if the house hasn’t sold by then.

it may be paid, up and running but unless you have informed them of the death of the policyholder it will be invalid

tooldle

My solicitor advises not to distribute until 6months after grant of probate. This allows for claims to be made by other parties with a potential interest. In practice, depending on the amount of cash versus the value of the property, a partial distribution may be possible without exposing the executor(s) to risk. 

Daniel54

longwalks1 said:

We’ve had another chat with the 3rd executor, he’s now saying everything should stay as it is until the house is sold because it would mean searching for new home insurance when mums currently expires (April ‘24) whereas it will automatically renew if everything stays as is.

and that a new account (with new account number/sort code) will cause all sorts of problems with utility companies and direct debits that are currently in place.

as for the possible zero-rate council tax if offered by Hertfordshire council, he doesn’t want to ask in case it’s granted and then someone comes to the house to check and catches him clearing the garage or mowing the lawn.  

Frustrating 

Yikes ,maybe it would helpful for the three executors to jointly take advice from a suitably qualified solicitor

Maintaining  the house  and garden is the duty of he executors.That is a totally separate issue from one of the executors occupying the house. I have had no problem at all with the local authority suspending council tax for an unoccupied house upon death,and would expect this to be by far the most common outcome.

Once advised,utility  companies will suspend payments until the estate is able to pay them,post probate.Pretending the deceased is still alive is sub optimal,to put it mildly.

The declarations in the insurance policy are already invalid and will remain so until a suitable policy is put in place.You  cannot buy an insurance policy in the name of someone who has passed,although insurance companies do maintain cover for a reasonably short period up until advice of death and policy transfer to the executors

The estate is paying premiums that will not meet any claim,and therefore wasting money.

Your third executor needs a head wobble.