Executor ruining estate advice please

luflo1998

My FIL died in Juy 2020. His daughter was named sole executor with estate divided equally among his three children my husband, his brother and sister (executor). At confirmation the estate was valued at over £1m which included a small business, various properties (which were rented out), residential home and many personal assets (which were of high value but not included in confirmation inventory). My husband has grave concerns about how the executor is handling the estate and is worried it is now losing money because of her decisions.

The residential house was sold in 2022 and my husband received his share of that but since then he has heard nothing. No update of progress. He has asked for updates but none have come forward. The estate solicitor told us that he had withdrawn from acting for the executor because she was not taking his advice. He transferred all funds held to her at that point - we have no knowledge of the amount or where the money is. We know that she has not put the rented properties on the market at all. The small business she has decided to continue running (it will not be making a profit as business rates are over 40k per annum). There is also one employee of the business, her uncle who she favours - he will have been receiving a salary over the past four years. The business premises are on the market but at an overinflated price, £150k over the valuation. It is also now in a state of disrepair because it has not been looked after for instance the grounds which were immaculate four years ago are now overgrown with grass ove 50cm tall. 

Questions are - how can she continue running a business four years after death, surely property should be sold for value or put into an auction? How can estate be paying to run this business? Surely she is accountable for not putting assets up for sale? She has also not shared any personal chattels since date of death with my husband, they are all in her house.

We thought this would be a fairly simple process of selling assets and distributing - yes potentially a couple of years but not four with little progress.

The other beneficiary, my husband's brother and the executor are very very close and are in regular contact.  We are concerned that the remaining estate after selling the house has now been damaged greatly and there will be very little left. Would she be personally liable for this?

luflo1998

In Scotland

Marcon

luflo1998 said:

My FIL died in Juy 2020. His daughter was named sole executor with estate divided equally among his three children my husband, his brother and sister (executor). At confirmation the estate was valued at over £1m which included a small business, various properties (which were rented out), residential home and many personal assets (which were of high value but not included in confirmation inventory). My husband has grave concerns about how the executor is handling the estate and is worried it is now losing money because of her decisions.

The residential house was sold in 2022 and my husband received his share of that but since then he has heard nothing. No update of progress. He has asked for updates but none have come forward. The estate solicitor told us that he had withdrawn from acting for the executor because she was not taking his advice. He transferred all funds held to her at that point - we have no knowledge of the amount or where the money is. We know that she has not put the rented properties on the market at all. The small business she has decided to continue running (it will not be making a profit as business rates are over 40k per annum). There is also one employee of the business, her uncle who she favours - he will have been receiving a salary over the past four years. The business premises are on the market but at an overinflated price, £150k over the valuation. It is also now in a state of disrepair because it has not been looked after for instance the grounds which were immaculate four years ago are now overgrown with grass ove 50cm tall. 

Questions are - how can she continue running a business four years after death, surely property should be sold for value or put into an auction? How can estate be paying to run this business? Surely she is accountable for not putting assets up for sale? She has also not shared any personal chattels since date of death with my husband, they are all in her house.

We thought this would be a fairly simple process of selling assets and distributing - yes potentially a couple of years but not four with little progress.

The other beneficiary, my husband's brother and the executor are very very close and are in regular contact.  We are concerned that the remaining estate after selling the house has now been damaged greatly and there will be very little left. Would she be personally liable for this?

I'm sorry you are having such problems, but I think you're over-estimating what this site can do. Getting some advice from a lawyer in Scotland is surely the only sensible step? There is very little information on which to base an answer, and your SIL isn't going to take a blind bit of notice of random strangers on the internet.

This has already dragged on for four years.  Not getting proper advice could cost considerably more than seeking professional help... Even if she does have some personal liability, if there's nothing left with which to pay your husband and his brother, it's going to be a pyrrhic victory, so you need to get on with it.

Sea_Shell

There is always the other option of just walking away from it all and getting on with your life.

He's at least had something from the estate, following the sale of the residential house, which doesn't always happen in these circumstances.

Devongardener

What has the executor done about paying inheritance tax on such a large estate?  It has to be paid within 6 months of death.   No distribution of funds can take place until the net value of all the assets is calculated, and all debts paid, so the proceeds of the sale of the house should not have been distributed already.
You definitely need legal advice, but also arrange a formal meeting with all beneficiaries.  There’s a lot of information on Google about executor’s duties I. Scotland, read it and go to the meeting armed with hard facts.  

user1977

Devongardener said:

What has the executor done about paying inheritance tax on such a large estate?  It has to be paid within 6 months of death.   No distribution of funds can take place until the net value of all the assets is calculated, and all debts paid, so the proceeds of the sale of the house should not have been distributed already.  

The house couldn't have been sold without Confirmation, and that wouldn't have been obtained without paying any IHT due.

There can be interim distributions of the estate if the executor is confident that the remaining assets are sufficient to cover any debts and the costs of the executry.

But I agree the OP's husband should seek legal advice.

GDB2222

The only thing I would add is that I have sympathy with anyone who takes on the job of executor. They are usually untrained, suffering from the loss of a relative or close friend, and it's a lot of work. So, I would offer to help, rather than stand back and criticise.

Still, 4 years is a long time. 

luflo1998

Thank you, help was offered but some people think they are able to cope yet don't understand the gravity of the situation. Lawyer's appointment will be made this week as it has gone on too long.....