executor deciding to make gift from estate funds to someone not named in will

propertyrental

What action can a joint executor and Beneficiary take if another joint executor unilaterally decides to make a significant cash gift to a 3rd party using estate money? 

Flugelhorn

is the other exec also a beneficiary?
if so then the money comes out of their share of the estate

Marcon

propertyrental said:

What action can a joint executor and Beneficiary take if another joint executor unilaterally decides to make a significant cash gift to a 3rd party using estate money? 

Maybe try explaining their responsibilities/the legal requirements? What is blindingly obvious to one person may be a completely closed book to another (or possibly their eyes are being wilfully kept shut...). Try referring them to https://www.thegazette.co.uk/all-notices/content/102309#:~:text=If%20the%20executor%20refuses%20to,to%20court%20to%20remove%20them.

propertyrental

Flugelhorn said:

is the other exec also a beneficiary?
if so then the money comes out of their share of the estate

They are Beneficiary of a legacy - a fixed amount.

I am joint Exec and also joint Beneficiary of 'the residue'.

Complicated as they have access to a joint account in their and deceased's names

Keep_pedalling

Unless you can show that the joint account was solely funded by the testator then that account is now owed by the surviving account holder. 

Marcon

propertyrental said:

Flugelhorn said:

is the other exec also a beneficiary?
if so then the money comes out of their share of the estate

They are Beneficiary of a legacy - a fixed amount.

I am joint Exec and also joint Beneficiary of 'the residue'.

Complicated as they have access to a joint account in their and deceased's names

You've referred to a 'cash gift' in your first post. Does that exceed the fixed amount they stand to inherit?

Savvy_Sue

Let's take easy examples. 

There is £1000 to be split equally between A and B. A decides to give someone not mentioned in the will £200. There is then £500 left for B, and £300 for A. 

Of course, B can decide to contribution £100 towards that gift of £200, in which case they get £400 each. But they don't have to. 

The questions before mine are relevant ... 

propertyrental

Keep_pedalling said:

Unless you can show that the joint account was solely funded by the testator then that account is now Yes.owed by the surviving account holder. 

Yes. It was originally the deceased's sole c/a, but as he aged and to help manage his finances, the 2nd name was added to the account. The account continued to be credited soley from the deceased's pensions etc. The joint account holder never made any contribution into the account.

Marcon said:

propertyrental said:

Flugelhorn said:

is the other exec also a beneficiary?
if so then the money comes out of their share of the estate

They are Beneficiary of a legacy - a fixed amount.

I am joint Exec and also joint Beneficiary of 'the residue'.

Complicated as they have access to a joint account in their and deceased's names

You've referred to a 'cash gift' in your first post. Does that exceed the fixed amount they stand to inherit?

No. The cash gift is a lesser amount.

Savvy_Sue

OK, so that clarifies things. My understanding would therefore be: 

Your co-executor has given a.n.other a significant amount of money, using a joint account which has transferred into his name. However this money should all be regarded as estate money. 

You can therefore point out to your co-exec that this must be deducted from his share of the estate, and that any future gifts to people not named in the will must be treated in the same way. You may need to do this in writing, and you may need to instruct a solicitor to write along these lines, especially if you think your co-exec is failing to follow the terms of the will in any other areas. 

That's all unless you are happy with the gift, and happy to share the cost from your own share of the estate. Even then, I'd want my co-exec to discuss such matters beforehand, and get my agreement! 

photodgm

Savvy_Sue said:

OK, so that clarifies things. My understanding would therefore be: 

Your co-executor has given a.n.other a significant amount of money, using a joint account which has transferred into his name. However this money should all be regarded as estate money. 

My understanding is different (possibly wrong). Any money in a joint account is belongs equally to both. Whilst both are alive either could at any time legally spend the money on anything they wanted to or transfer all the money into their own sole account. When one party to the joint account dies the money passes to the survivor.  It is not part of the estate. However if the money in it came solely from the deceased, it is counted as part of the estate for IHT purposes. If someone has a link to something official that can provide a definitive answer I for one would be grateful. 

Marcon

photodgm said:

Savvy_Sue said:

OK, so that clarifies things. My understanding would therefore be: 

Your co-executor has given a.n.other a significant amount of money, using a joint account which has transferred into his name. However this money should all be regarded as estate money. 

My understanding is different (possibly wrong). Any money in a joint account is belongs equally to both. Whilst both are alive either could at any time legally spend the money on anything they wanted to or transfer all the money into their own sole account. When one party to the joint account dies the money passes to the survivor.  It is not part of the estate. However if the money in it came solely from the deceased, it is counted as part of the estate for IHT purposes. If someone has a link to something official that can provide a definitive answer I for one would be grateful. 

See https://www.thegazette.co.uk/wills-and-probate/content/103479 which makes helpful reading.