UK Wills Payment of Pecuniary legacies.

In the UK with pecuniary legacies is the order of names in the will important. We have "I bequeath Tom 10000. I Bequeath !!!!!! and Harry £20000 each" . Until the house is sold we only only have £20000 available. Should we settle Tom in full and divide the rest between !!!!!! and Harry or should we pro-rata the total between all 3 beneficiaries.

Comments

  • SiliconChip
    SiliconChip Posts: 1,279
    First Anniversary First Post Name Dropper
    Forumite
    I can't comment on the legal position but in a sililar situation I treated all beneficiaries the same way and when I made an interim payment I pro-rata'd the amounts going to each in the way you suggest, so in your case £4000 to Tom and £8000 each to Richard and Harry.
  • Keep_pedalling
    Keep_pedalling Posts: 16,206
    First Anniversary First Post Name Dropper Photogenic
    Forumite
    I would only distribute those bequests when I have sufficient assets to pay them all in full. The order they are listed in has no relevance and I would be holding back the money you do have to cover any unexpected estate expenses. 
  • Robin9
    Robin9 Posts: 11,970
    First Post First Anniversary Name Dropper
    Forumite
    I can't comment on the legal position but in a sililar situation I treated all beneficiaries the same way and when I made an interim payment I pro-rata'd the amounts going to each in the way you suggest, so in your case £4000 to Tom and £8000 each to Richard and Harry.
    I wouldn't go that far -  in doing so you will have fully committed the full £20k you have available.   £20k is nothing should you have any problems with property and/or it takes a long time to sell.  
    Never pay on an estimated bill
  • user1977
    user1977 Posts: 13,336
    First Anniversary First Post Name Dropper Combo Breaker
    Forumite
    edited 18 January at 3:33PM
    Which bit of the UK might be relevant given there are three separate jurisdictions as far as Wills are concerned - but I would expect the normal principle to be that they get it pro rata. Though I'm not sure how "legal" that is for interim payments and whether anybody is actually entitled to demand a particular proportion.
  • Marcon
    Marcon Posts: 9,999
    First Anniversary Name Dropper Combo Breaker First Post
    Forumite
    In the UK with pecuniary legacies is the order of names in the will important. We have "I bequeath Tom 10000. I Bequeath !!!!!! and Harry £20000 each" . Until the house is sold we only only have £20000 available. Should we settle Tom in full and divide the rest between !!!!!! and Harry or should we pro-rata the total between all 3 beneficiaries.
    Only if the will specifies that payments should be made in a particular order.

    Waiting until the house has been sold would seem the safest route and you can then settle all the legacies in full.
    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
  • Linton
    Linton Posts: 17,027
    Name Dropper First Post First Anniversary Hung up my suit!
    Forumite
    edited 18 January at 4:29PM
    As I understand it the executor must treat all legacies of the same type in the same way. The order of the bequests  in the will is irrelevent. The order of legacy typesafter debts and expenses have been paid is:

    A) Specific : a named object or the contents of a named account
    B\) Pecuniary legacy: Specific sum of cash.
    C) Residual legacy: % of what is left

    So specific legacies are paid out first.  If the item bequeathed was not in the estate at death the legacy fails 

    Then the Pecuniary legacies are distributed.  Estate assets can be sold to ensure the sums can be paid.  If there still is not enough money pecuniary beneficiaries get the same % of their lump sum from the cash that can be raised.

    Finally the residual beneficiaries get their due % of what is left.
Meet your Ambassadors

Categories

  • All Categories
  • 341.8K Banking & Borrowing
  • 249.7K Reduce Debt & Boost Income
  • 449.2K Spending & Discounts
  • 233.9K Work, Benefits & Business
  • 606.1K Mortgages, Homes & Bills
  • 172.5K Life & Family
  • 246.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards