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Solicitor refusing to distribute to executors - and refusing to refund overpaid IHT

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Comments

  • boingy
    boingy Posts: 1,923 Forumite
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    edited 17 April 2024 at 7:59AM
    If you hired the solicitors then fire the solicitors. Why continue with them when you clearly don't trust them?
  • bobster2
    bobster2 Posts: 991 Forumite
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    edited 17 April 2024 at 9:13AM
    Surely if OP is Executor and solicitors are not Executors (but have simply been hired to help with the process) then...
    OP should be able to open a new Executor's account (or account for that purpose) and ask solicitors to transfer all estate funds into that - so that OP can take care of all distributions from the estate.
    When I was an Executor - and I hired a solicitor to help with probate and a house sale - they were very keen to get the proceeds of that sale out of their client account and into my executor's account ASAP. They didn't want it hanging around there for more than a few days. They did give me the option of handling distributions (for a fee) but I chose to do it myself to save money on fees.
  • user1977
    user1977 Posts: 17,969 Forumite
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    I can understand the solicitor's caution about the payment to the beneficiary (especially if the OP's response is that they don't want to even ask the beneficiary!) - but ultimately the OP can sack the solicitors and require them to hand over the funds to the OP anyway...
  • tooldle
    tooldle Posts: 1,607 Forumite
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    I’ve recently hired a solicitor to assist executing an estate. Their t&cs are very clear. I sign off the estate accounts and calculations. Are you saying OP, you approved / signed off tax calculations and later spotted an error? 
  • Malthusian
    Malthusian Posts: 11,055 Forumite
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    edited 17 April 2024 at 11:02AM
    tooldle said:
    I’ve recently hired a solicitor to assist executing an estate. Their t&cs are very clear. I sign off the estate accounts and calculations. Are you saying OP, you approved / signed off tax calculations and later spotted an error? 
    Even if the OP did sign off the calculations, the solicitors are still on the hook to the OP for their incorrect calculations; that's what you pay them for.

    As for the original question, I agree with others - the solicitors should pay the estate funds into the "Executors of Mx Joe Bloggs" account (which they cannot possibly refuse - whatever happens to the funds after the solicitors send them to an account in the name of the estate is not the solicitors' responsibility, as they are not executors), and then the OP can transmit them to the beneficiary as they see fit. There is no good reason for the funds to rest in the OP's personal account.
  • tooldle
    tooldle Posts: 1,607 Forumite
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    tooldle said:
    I’ve recently hired a solicitor to assist executing an estate. Their t&cs are very clear. I sign off the estate accounts and calculations. Are you saying OP, you approved / signed off tax calculations and later spotted an error? 
    Even if the OP did sign off the calculations, the solicitors are still on the hook to the OP for their incorrect calculations; that's what you pay them for.

    I’m not suggesting otherwise, simply seeking clarification on the course of events as the term ‘negligence’, has been used. 
  • I can't speak to the IHT side as I didn't have to deal with it, but to add to the chorus, the advice given matches that of closing my parent's estate as Executor - solicitor engaged to deal with property transfers/sales etc, all proceeds then forwarded to my Executor account, beneficiaries given disbursements directly by me after any legitimate estate expenses taken. If you are sure of what you have engaged them for, just get them to give the Executor (you) the cash and deal with it however you want....
  • BooJewels
    BooJewels Posts: 3,006 Forumite
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    The funny thing is, when we recently sold an estate property using solicitors for conveyancing - I asked if they'd distribute the relevant percentages (purely the net balance of the house proceeds) directly to beneficiaries (two execs, both major beneficiaries and a third lesser beneficiary) and they refused - saying that distribution was the executors job. 

    The grounds for refusal was that they weren't allowed to send funds to anyone directly that they hadn't done a full ID check and AML searches on.   In the end we compromised and they sent the other executor her percentage and mine and the third beneficiary's directly to me and I sent the third portion on myself.  In that situation, as we both (the execs) had to appear in person with photo ID, they definitely wouldn't have been able to send anything to someone living overseas and in poor health.

    So it can only be down to the individual policies of each practice as to how they manage such situations.
  • HHarry
    HHarry Posts: 991 Forumite
    Part of the Furniture 500 Posts Name Dropper
    I’ve had it both ways as Executor.  The first time I received all monies and distributed, the second time they preferred to distribute themselves (which was fine for me) so what they are suggesting isn’t unusual.

    But if it’s not what you / the Beneficiary want then you either need their consent, or to dig your heels in and submit complaint 3.
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