Estate Distribution fees? CHAPS

IreneMot

Hello all, 

I am dealing with an estate that is getting to the point of distribution. There will be 6 payment with a high value that need to be Chaps payments. This comes with a fee of £24 per translation.

How does this get changed?
Is it per person, e.g. taken out of their share of the money.
Is it "taken out of the estate" before distribution. This would be worked out and added to the expenses before distribution, so it would be shared between the beneficiary. 

The only problem with the latter is that some beneficiaries would be better than others because the share is not equal.  

Brie

It's an expense of the estate so out of that before distribution. 

But I'm wondering why CHAPS are needed at all.  Can't you just do a bank transfer?  Maybe more than 1 for each beneficiary.  On the other hand if the amounts are so very high that CHAPS is the only way then I can't imagine anyone would begrudge losing £24 to get the dosh safely.

user1977

I wouldn't get very excited about how it's treated, but assuming the cost is less than the interest saved by the recipient then I would just deduct it from their share. If they don't like that, they can get paid by a cheaper method and wait for it to clear...

IreneMot

Brie said:

It's an expense of the estate so out of that before distribution. 

But I'm wondering why CHAPS are needed at all.  Can't you just do a bank transfer?  Maybe more than 1 for each beneficiary.  On the other hand if the amounts are so very high that CHAPS is the only way then I can't imagine anyone would begrudge losing £24 to get the dosh safely.

Thank you. 

I did think of normal bank transfer, but there are limits on how much you can send and how frequently e.g. 2 payments per week and a max of 4 per 28 days.  

doodling

Hi,

Old fashioned I know but you could always write cheques (assuming you have a chequebook for the account from which you are making payments).

JGB1955

If the proceeds are in the same bank as the beneficiary you may find you can transfer six figure sums instantly.  I was able to pay all the beneficiaries of my father's estate in lump sums - fortuitously we all have Nationwide accounts!

bobster2

Many banks have increased their (free) faster payment limits.

https://www.wearepay.uk/what-we-do/payment-systems/faster-payment-system/transaction-limits/

E.g. Santander is £25,000 per payment - up to £100,000 per day. Lloyds will do £250,000 by faster payment in branch (not online). Nationwide will go up to £100,000 if it's someone you've paid before.

However, you may fine that suddenly doing multiple faster payments in a short period of time triggers their fraud prevention algorithms and they lock your account - necessitating a call to get it unlocked.