Gifting a sum from inheritance

longwalks1

After some advice please, my partner is soon to inherit from her late mums estate, it was split equally between her and 2 siblings.
there was an unofficial agreement between the 3 siblings to gift £18,000 to a close ex family member (wife of a 4th sibling who sadly passed a few years ago). 
Can that £18,000 be transferred to the wife of the deceased brother from the executor account?  Or even £6k from each executor/beneficiary account once the estate is distributed.

one of the siblings (if you read my previous threads on here you’ll know there is one executor who’s been awkward throughout the process) is saying each of the 3 executors can’t gift £6000 to the family friend in the same tax year.  Is that true?

there is nothing in writing, nothing in mums will to says this, it’s was an agreement between the 3 remaining siblings.  Awkward sibling is saying is can’t be done for tax reasons, can’t be done in the same tax year etc.  

thank you all (again) - will be glad when this is all put to bed! 

msb1234

Is it too late to do a deed of variation? https://smithpartnership.co.uk/individuals/deed-of-variation-will#:~:text=A%20Deed%20of%20Variation%20is,entitlements%20associated%20with%20the%20estate.

Flugelhorn

the siblings can do a deed of variation (so long as death was within 2 years) and just transfer the money, won't have any tax implications 

bobster2

longwalks1 said:

one of the siblings (if you read my previous threads on here you’ll know there is one executor who’s been awkward throughout the process) is saying each of the 3 executors can’t gift £6000 to the family friend in the same tax year.  Is that true?

They can each gift as much as they like to the family friend. The amount per tax year only becomes relevant if one of the siblings dies within 7 years AND they've given a significant amount in other gifts during that 7 year period AND they have an overall estate (including gifts) that is getting into inheritance tax territory. 

longwalks1

Thanks all
 Bobster2 - that’s exactly what I tried to explain earlier but gave up after not being listened to.  3rd executor has been an awkward pain since day 1.  I’m not even an executor but asking on here to help out my partner.  

Thanks again, you’ve explained it perfectly.

JGB1955

longwalks1 said:

Thanks all
 Bobster2 - that’s exactly what I tried to explain earlier but gave up after not being listened to.  3rd executor has been an awkward pain since day 1.  I’m not even an executor but asking on here to help out my partner.  

Thanks again, you’ve explained it perfectly.

If you go down the 'deed of variation' route the funds never belong to the beneficiaries - they are distributed, by the estate, to the 'additional' beneficiary.

Savvy_Sue

Plus there is nothing to stop two of the beneficiaries giving what they agreed by Deed of Variation while the awkward squad carry on dithering. It's only those who are adversely affected by the change who need to agree to it. 

Of course it means the beneficiary gets less than intended, but it's a start.