How to prevent benefits being effected whilst holding money as an executor.

acR

My elderly mother is executor for her brothers estate. The estate did not need probate and so she has transferred the money to a separate account in her name and then was going to change it to an executor account with Lloyds bank. However we have been told this account cannot be managed on line and  she would have to go into branch every time she needed to make a payment from the account. This is not really a suitable arrangement for an elderly mostly housebound lady. 

The problem she has if she doesn't make it an Executor account it will effect her own means tested benefits. Is there a way to inform the DWP of the Estate money in her name, in a completely separate account, so that it will not effect her benefits until the estate is wound up. She will be a beneficiary eventually but not until the all the bills and other beneficiaries are paid and it may not even be enough to effect her benefits once paid.

DE_612183

Create an executor account with a bank that does online - I used RBS.

Flugelhorn

I had an exec account with RBS - but I got the feeling that it was just an extra current account for me but they just named it "Miss F Horn, exec of Mrs E Horn"

HillStreetBlues

Having a separate account is fine as long as you can show the money is from the Estate.
Did they money paid into that new account go directly from her brothers account?

acR

HillStreetBlues said:

Having a separate account is fine as long as you can show the money is from the Estate.
Did they money paid into that new account go directly from her brothers account?

HillStreetBlues said:

Having a separate account is fine as long as you can show the money is from the Estate.
Did they money paid into that new account go directly from her brothers account?

Yes , it shows as IPA probate closure on the statement.

peteuk

Who benefits from the estate, as execetor shouldn’t she be distributing the funds accordingly. 

sheramber

peteuk said:

Who benefits from the estate, as execetor shouldn’t she be distributing the funds accordingly. 

Not unril all bills are paid.

acR

peteuk said:

Who benefits from the estate, as execetor shouldn’t she be distributing the funds accordingly. 

Yes of course, but as sheramber pointed out, not until all bills have been paid. Some of which can take some time to surface.

Willeri

Use another bank who do offer Executor/Trustee accounts - try Akoni to arrange 

HillStreetBlues

acR said:

HillStreetBlues said:

Having a separate account is fine as long as you can show the money is from the Estate.
Did they money paid into that new account go directly from her brothers account?

HillStreetBlues said:

Having a separate account is fine as long as you can show the money is from the Estate.
Did they money paid into that new account go directly from her brothers account?

Yes , it shows as IPA probate closure on the statement.

The best action would be to notify the DWP that your mother is the legal owner of the account but not the beneficial owner of the capital.
Once all bills have been paid the your mother as executor will distribute the money and account closed.
DM Guide https://assets.publishing.service.gov.uk/media/65d32a810f4eb1ec90a98120/dmgch29.pdf

29099 gives a good example on how a DM  differentiates between legal / beneficial owners.

Pradeep has a building society account. It is in her name so she is the legal owner of the money in that
account. However, she says that the money in the account belongs to her sister Leena who is working
abroad. On the day the account was opened £20,000 was put into it. Nothing has been paid into the
account except interest and no money has been taken out. The DM has evidence from Leena that she
gave £20,000 to Pradeep to save for her whilst she was working abroad and she wants it, and the
interest, back when she returns. The DM decides that Pradeep is not the benefcial owner of the money
in the building society account because she is holding it on trust for Leena

acR

HillStreetBlues said:

acR said:

HillStreetBlues said:

Having a separate account is fine as long as you can show the money is from the Estate.
Did they money paid into that new account go directly from her brothers account?

HillStreetBlues said:

Having a separate account is fine as long as you can show the money is from the Estate.
Did they money paid into that new account go directly from her brothers account?

Yes , it shows as IPA probate closure on the statement.

The best action would be to notify the DWP that your mother is the legal owner of the account but not the beneficial owner of the capital.
Once all bills have been paid the your mother as executor will distribute the money and account closed.
DM Guide https://assets.publishing.service.gov.uk/media/65d32a810f4eb1ec90a98120/dmgch29.pdf

29099 gives a good example on how a DM  differentiates between legal / beneficial owners.

Pradeep has a building society account. It is in her name so she is the legal owner of the money in that
account. However, she says that the money in the account belongs to her sister Leena who is working
abroad. On the day the account was opened £20,000 was put into it. Nothing has been paid into the
account except interest and no money has been taken out. The DM has evidence from Leena that she
gave £20,000 to Pradeep to save for her whilst she was working abroad and she wants it, and the
interest, back when she returns. The DM decides that Pradeep is not the benefcial owner of the money
in the building society account because she is holding it on trust for Leena

Thank you, I think I understand the above, but what does the abbreviation DM stand for ?