Not enough money left in will

QuimbusFlestrim

My father passed away and left a specific instructions in his will from 9 years ago when he first sold his house. I am the sole executor.

He left these instructions in this order in the will:

1) He left £5k for my brother;
2) £5k for my father's friend;
3) £5k for each of his grandchildren (4) from his savings account;
4) £500 to a charity;
5) and Everything else should be mine.

In total £30, 500k specifically named with the residue coming to me.

We sold his house about 9 years ago and this has mostly been taken up with care home fees over the years and his savings have dwindled. 

He passed away with £16k in his bank account and £20k in a savings account. He owes care home fees and funeral expenses (which I have now paid) leaving less than £1k. His estate only amounts to less than £21k. I am the executor and do not want to employ a solicitor for such a small amount, but am unsure how to divide up the final £21k. Although his intention was that I would get the bulk of his estate, it looks as if I will end up with nothing, which I am sanguine about.

How should I divide out the amounts?
Should the grandchildren get the whole amount because he specified it should come from his savings, whereas the rest should come from his estate (although unspecified)?
Should the estate be divided proportionately between the 7?
Should the grandchildren get £20k as this is from his savings as explicitly stated, and the others get the £1k divided proportionately ?

There is also strange clause which I do not know how to operate. 

It states that he kept a savings account specifically for the purposes of giving to his grandchildren. He wanted £5k to paid to each one to purchase premium bonds, that they could only receive when they were 30 and not a day before. It seems like an odd request and NS&I allows the monies to go to the children at 16. Should I pay the cash to the my brother and ask him to sign an undertaking to ensure that his kids do not get the cash until 30 or should I spend money out of the estate setting up some form of trust? I am happy to hold the PB in my name and pass these onto my children when they are 30 but am I in breach of the terms of the will?

The will is not very clear in this regard. 

I know setting up trusts will take up most of the cash that would go on Premium Bonds so would be a really wasteful use of the estate for no benefit.

In addition, it states that I should purchase a gravestone and pay for flowers every year on his and my mother's grave as I get the bulk of the estate. As I do not get anything, should I pay for the gravestone from the estate prior to distribution as this is part of funeral expenses? This will eat into the estate even more. 

sevenhills

QuimbusFlestrim said:

1) He left £5k for my brother;
2) £5k for my father's friend;
3) £5k for each of his grandchildren (4) from his savings account;
4) £500 to a charity;
5) and Everything else should be mine.

If there is just £21k left, its unlikely that anyone in authority will question what you do.

I would say £1k each and a small sum to charity, you keep the rest.

Not a good way to set out a will. Maybe you could talk to the people involved and reach an agreement?

Shelldean

sevenhills said:

QuimbusFlestrim said:

1) He left £5k for my brother;
2) £5k for my father's friend;
3) £5k for each of his grandchildren (4) from his savings account;
4) £500 to a charity;
5) and Everything else should be mine.

If there is just £21k left, its unlikely that anyone in authority will question what you do.

I would say £1k each and a small sum to charity, you keep the rest.

Not a good way to set out a will. Maybe you could talk to the people involved and reach an agreement?

I didn't think you could vary the will without a deed of variation. And you couldn't vary beneficiaries that are under 16?
Happy to be proven wrong tho?

sevenhills

Shelldean said:

I didn't think you could vary the will without a deed of variation. And you couldn't vary beneficiaries that are under 16?
Happy to be proven wrong tho?

I think the OP is worried about all the estate being used in solicitors fees.

He needs to do what he thinks is best, but be honest and open.

It was a poorly made will, the intention of the willmaker is obvious.

Shelldean

Tbh I wouldn't have a clue how to solve this one 
As to change a will you need all beneficiaries to agree but you can't agree if under 16.

Seems a stalemate to me 😞

pramsay13

If he had £36000 at the time it looks as though he meant you to get around £5000 so the same as your brother, the friend, and the grandchildren. As said it has been poorly worded (was it drawn up by a solicitor?) but I would be inclined to pay £500 to the charity assuming it was something close to his heart, and then divide the remaining money equally between the others involved which would be around £3400 each instead of £5000. I think that is the fairest way to ensure the intention of the will is carried out. 

bobster2

Why have you started a second thread on the same topic? 6 hours after starting the first???

https://forums.moneysavingexpert.com/discussion/6508819/not-enough-money-left-in-will

QuimbusFlestrim

bobster2 said:

Why have you started a second thread on the same topic? 6 hours after starting the first???

https://forums.moneysavingexpert.com/discussion/6508819/not-enough-money-left-in-will

A poster asked me to post here. I cannot work out how to delete the old post. 

Rob5342

According to this the people with a fixed amount should he a proportion and the person left the remainder should get nothing. Maybe you should use that as your starting point, and see if the people over 18 would be prepared so have some of their share go to you.

http://www.bobbetts.co.uk/cms/catarticle/wpwhatifnotenoughmoneytopaydebts.html#:~:text=If all the debts can,get what is left over.

Linton

I am not a lawyer but...

AIUI the only way the age stipulations of the will could possibly be enforced is by a discretionary trust which perhaps would be OTT for £20K. However PBs cannot be held by a trust.

ISTM the will restrictions are unenforcable.  So I think you could safely ignore that part of the will.  Who is going to object anyway?

As regards the headstone and flowers, a will cannot require that someone else does something especially with their own money.  It can only specify who should get the estate assets.  Anything beyond that is only a wish.