Bullying Beneficiary - What are their rights to estate accounts?

Hammy21

Hi All,

My sister died intestacy with no children, so her estate must be divided between her siblings. My living brother's children wanted to buy her house at a considerable discount. This was rejected as it would mean the siblings giving up most of their share of the estate. My brother's children have been bullying me and harassing me ever since.  I am the Estate Administrator. 

They are now sending me letters asking me for the estate and bank accounts, which I am willing to show to the beneficiaries (my siblings). I am just not prepared to send out copies of the estate accounts as it has not been finalised and will make no sense (the house is still unsold) to the beneficiaries. 

They have forged their father's signature in this request. I know THEY have no entitlement to view the accounts as they are not beneficiaries, but has my brother? Are the actual beneficiaries entitled to see the accounts and bank accounts before the estate has been finalised?

I have read online that only Residual beneficiaries are allowed to see estate accounts, not ordinary beneficiaries?  Can someone please confirm this as there is a lot of misinformation online about this?

I do not want to send any accounts out before the estate is finalised as I am afraid my nephews will nitpick through them and accuse me of something just to cause havoc.

mattojgb

Residual beneficiaries are those that do not have a defined gift in the will (e.g. house, £500). They are entitled to receive a copy of the estate accounts. The principle is that they get to see how the residuary was arrived at so they can check they have received the correct share (and not necessary if the gift is defined). In view of the intestacy there are no defined gifts so all the beneficiaries are residual beneficiaries.

Marcon

Hammy21 said:

Hi All,

My sister died intestacy with no children, so her estate must be divided between her siblings. My living brother's children wanted to buy her house at a considerable discount. This was rejected as it would mean the siblings giving up most of their share of the estate. My brother's children have been bullying me and harassing me ever since.  I am the Estate Administrator. 

They are now sending me letters asking me for the estate and bank accounts, which I am willing to show to the beneficiaries (my siblings). I am just not prepared to send out copies of the estate accounts as it has not been finalised and will make no sense (the house is still unsold) to the beneficiaries. 

They have forged their father's signature in this request. 

You are letting the situation continue and it's obviously causing you considerable distress.  Does your brother know what's going on - especially that his little darlings are forging his signature? If not, tell him. If he does, and is condoning it, then I think you need to get tough. Say that unless their antics desist, you will be using the services of a solicitor (which costs will come out of the estate, thus reducing the value available for beneficiaries to inherit) and all future communication will be via that solicitor. 

Firmly say that no estate accounts can be drawn up until the administration of the estate has been concluded and you will not enter into any further correspondence on the matter, but will distribute as required by law at the appropriate time.

Beneficiaries have no right to see the bank accounts (if they aren't also an executor or administrator), and I suggest you don't start winging those round if you can avoid doing so. Curiosity isn't a good reason to do so, although it is always an understandable one!

Hammy21

Thank you both for your advice, which has certainly helped. Yes my brother does know what they are doing, he is also angry they did not get a cheap house. 

So they are all residual beneficiaries.....and I understand they must then see the final estate accounts. But can they call on the accounts before the estate is finalised?And...are residual beneficiaries entitled to have copies on the bank accounts whenever they please? Would I be breaking the law by not providing copies of the estate accounts and bank accounts mid process?

mattojgb

The only requirement is to provide a final set of estate accounts. I wouldn't show them bank accounts. Maybe some interim accounts would help (only you are in a position to judge), but you don't have to make any available.

RAS

Since your brother is a beneficiary, you need to send him a copy of the estate accounts when you have finalised and distributed the estate. Neither he nor anyone else is entitled to a running commentary.

Tell them all to step back.

Savvy_Sue

RAS said:

Since your brother is a beneficiary, you need to send him a copy of the estate accounts when you have finalised and distributed the estate. Neither he nor anyone else is entitled to a running commentary.

Tell them all to step back.

I'd suggest using wording along these lines: 

Marcon said:

You are letting the situation continue and it's obviously causing you considerable distress.  Does your brother know what's going on - especially that his little darlings are forging his signature? If not, tell him. If he does, and is condoning it, then I think you need to get tough. Say that unless their antics desist, you will be using the services of a solicitor (which costs will come out of the estate, thus reducing the value available for beneficiaries to inherit) and all future communication will be via that solicitor. 

Firmly say that no estate accounts can be drawn up until the administration of the estate has been concluded and you will not enter into any further correspondence on the matter, but will distribute as required by law at the appropriate time.

Beneficiaries have no right to see the bank accounts (if they aren't also an executor or administrator), and I suggest you don't start winging those round if you can avoid doing so. Curiosity isn't a good reason to do so, although it is always an understandable one!

It might not even cost very much to instruct a solicitor to send such a letter: just that, not asking them to take over at this stage. And it might shut this down faster, rather than encouraging them to continue to badger you. 

sheslookinhot

Why are the children of a sibling of the deceased deemed residual beneficiaries? I would have thought, possibly wrongly, that only the deceaseds’ siblings are beneficiaires.

To the OP, tell your brother that if his children want a cheap house then he, your brother, can forego his share of your sisters estate.

Hammy21

The children of the sibling (my brother) are not residual beneficiaries, but my brother is and he is old so they do everything for him. They can get him to sign any document they want, and my brother is a nasty individual anyway who is bipolar along with two of his children.

Hammy21

Thank you everyone, this is very helpful. Macron I will follow your advice and if they wont settle down I will get a solicitor to write the letters for me going forward. 

Newly_retired

Good decision. 

In my experience there cannot be any accounts produced until any debts and liabilities are known and the house is sold, so what they want to know now is how much money is in the estate accounts, and how much the house is worth, so they can have an idea of what their father might inherit. 

It is up to you whether you want to supply the children with any information, but they have no right to it, though their father has, as a beneficiary.