Bought neighbours car and they died before cashing the cheque

dougalmcfrugal

Now the executor of the will has been in contact, returned the cheque and asked the amount (~£10k) be paid into their personal account.

Does this sound right and if so, am I obliged to do so? The car was transferred and in my name for a few weeks before they died. There is a sole beneficiary of the ~£2m estate; a distant estranged relative, not sure if that makes any difference really.

Morally I feel like I should pay but part of me is wondering… also, here is the letter the executor provided- slightly redacted. Not sure if it's pertinent but I was aware the deceased disliked/ fell out with this individual and was seeking to remove them before their untimely death.

As you are aware xxxx sadly died on January 2024 and I have been appointed her executor in accordance with the terms of her last Will dated 2023.

On January 2024 you provided xxxx with your personal cheque, number xxx, for the sum of €0000 in full payment for the purchase of xxxxX registration number xxxxxxx. This cheque had not been presented at the time of her death. As the bank has been notified of xxx death and is in the process of being closed and the proceeds transferred to the Executor's account I have set up for their estate (THEY HAVENT SET UP A NEW ACCOUNT) I am returning the original cheque to you for cancellation.

I would be grateful if you would arrange payment for the vehicle directly to the executors account, details as follows:-

Account Name - this individuals personal account

Sort Code Account Number

If you prefer you can provide me with a cheque instead.

Following the payment of the outstanding I can confirm that on behalf of the estate that there are no further sums owing in connection with the purchase of the vehicle detailed above.

elsien

How do you know they haven’t set up the executor’s account as a new account? 

Keep_pedalling

Most executors will set up an account in their own name simply because it is so difficult to find a bank willing to provide an executors account these days. . When my mother died I simply used a current account in my own name to handle park estate funds until I was in a position to distribute the estate. That account was not used to hold any of my own money, so you can’t possible know that they have not set up a new account to handle estate funds.

This is not a question of morals, you the money to the estate so you have no option other than paying it to the executor. 

p00hsticks

Not many banks these days do executor accounts, and those that do - such as Nat West - expect the executor to set up a personal account in their name to start with and will only change it to an executor account once probate is obtained, which won't happen for a while yet.  . 

So it's not necessarily a red flag for the executor to be asking for the money to be paid into an account in their name. 
The value of the estate and who it has been left to is irrelevant - you owe the money to the estate and need to pay it. 

BooJewels

I'm another who has executed estates recently, using a 'personal' account.  In fact, I used the same account for 3 estates (opened originally for the first one, then thankfully not overlapping) and the only money that has ever gone through them has been for each of the estates.  The bank wouldn't allow me to open an executors account as it happened in lock down and wouldn't have been possible to meet the terms of the account without breaking lockdown restrictions.

I was also removed as an executor from one will after my husband died (no animosity, but the family dynamic and beneficiaries therefore changed), but had I been called upon to act before the new will had been signed, I still would have done it to the very best of my ability.

Just keep good records as you proceed, if you have any qualms about it - your bank transactions will prove the debt was paid and you can really cover your bum by sending a cheque by signed for post etc.

Ayr_Rage

You need to pay for the car otherwise it is theft.

Make sure you get a receipt.

fatbelly

Glad to hear that banks have changed their practice. When mil died my wife set up an 'Executor of...' account with Lloyds to deal with the estate. When after many years the whole thing was finished there was a few k left and she decided to keep it going as a personal account, separate from our joint account. She has asked them to remove the 'executor o' and just put it in her name several times and they always agree to this.

To this day the paperwork is still generated with 'executor of (deceased)'

user1977

Ayr_Rage said:

You need to pay for the car otherwise it is theft.

It isn't "theft", it's a debt owed to the estate.

Keep_pedalling

dougalmcfrugal said:

Does this sound right and if so, am I obliged to do so? The car was transferred and in my name for a few weeks before they died. There is a sole beneficiary of the ~£2m estate; a distant estranged relative, not sure if that makes any difference really.

It does to the executor, they are going to have to liquidate as much as possible to meet a massive IHT liability within 6 months. 

Devongardener

You owe the money to the estate, you have the executor’s instructions in writing.  Just pay it as they request, keep all the paperwork, as long as you are confident that the letter is definitely from the legal executor, there is no reason not pay.

SevenOfNine

Personally I'd confirm that the debt is owed, & will of course be paid. You've got no choice in that, you owe the money.

We've used personal accounts opened purely to process estate funds 4 times, never had specific executor's accounts. A couple of years ago we did receive 1 refund cheque made out in the name of my husband (he was executor) but they'd added "Executor for the name of his dad", he took it to the bank in person & they accepted it over the counter.

But you seem to have suspicions, the deceased indicating they planned to remove the executor & the beneficiary being estranged so you can't ask them anything.  Have you actually had sight of the 2023 will? 10k is a lot of money to hand over to someone who says they are executor for the estate & to pay the debt in to an a/c in their name.

Who registered the death, froze the bank account & arranged the funeral, anyone involved in anything other than the 'executor'? If you know it's them that have done all that then just pay up!

If you have serious doubts I wouldn't do a bank transfer, I'd either send a cheque with "Executor for ***" tacked on to the end, or I'd ask for a copy of the signed will to confirm the name of the executor. Can't really check if there is a newer will than 2023 though I suppose you could agree to pay when probate is granted, though no clue where you'd stand legally with that! We had to wait for that to be granted in order to gather a few refunds, for others just the death cert was enough.