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No idea what this means - can anybody help?

BIL is joint executor with his late father's spouse (not his mother).  His father died last year, in October.  He has done most of the work in relation to sorting out all the forms in order to apply for probate.  The co-executor is refusing to sign the forms unless she is given a sum of money she believes she is entitled to.  The sum of money is relating to things she purchased for her late husband whilst he was in the care-home prior to his death, such as clothes and toiletries.  These amounts were rejected by the OPG when she tried to claim for them from his account when he was alive.
BIL notified HMRC and DWP of the death of his father and a tax refund and attendance allowance refund was issued to the co-executor.  The co-executor cashed the cheques in her personal bank account despite there being a joint executors' account for any monies to be paid into.  She said that she kept it to pay for the shower that broke in the house - which is not her house, but she has the right to stay there for her lifetime under the term of the will.
BIL has sought legal advice to try and get probate signed and notified solicitor of the co-executor of the refunds and the fact that she did not pay any of it into the joint executor account.
Her solicitor wrote and said the following which is what they do not understand.  Can anybody explain what this means?
 You may not be aware that many organisations and in particular, DWP and HMRC have a practice of sending their refunds in the form of a warrant and not in favour of the executors but in the name of the person registering the death. It is frequently the case that during the administration these amounts are set against the entitlements of the person receiving them 

The co-executor has been bequeathed a lump sum in the Will alongside the lifetime right to reside in the property.  What is this paragraph suggesting?  That she can keep the money and offset it against what she has been bequeathed, or offset against what she feels that she is owed?  Does it not simply form part of the estate and then the Will is distributed upon receipt of Probate?

Thanks in advance.

Comments

  • Hoenir
    Hoenir Posts: 5,632 Forumite
    1,000 Posts First Anniversary Name Dropper
    The refunds are treated as an asset when calculating the value of the estate When it comes to distributing the monies held within the estate. They are then deducted prior to payments being made. 


  • Grumpy_chap
    Grumpy_chap Posts: 17,016 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper Combo Breaker
    The co-executor is refusing to sign the forms unless she is given a sum of money she believes she is entitled to.  The sum of money is relating to things she purchased for her late husband whilst he was in the care-home prior to his death, such as clothes and toiletries.  These amounts were rejected by the OPG when she tried to claim for them from his account when he was alive.

    How much is the value of clothing and toiletries?  From a pragmatic perspective it might be worth simply paying for this whether right or wrong?
    Why did the OPG not approve the spend on what is seemingly basic items?


    Her solicitor wrote and said the following which is what they do not understand.  Can anybody explain what this means?
     You may not be aware that many organisations and in particular, DWP and HMRC have a practice of sending their refunds in the form of a warrant and not in favour of the executors but in the name of the person registering the death. It is frequently the case that during the administration these amounts are set against the entitlements of the person receiving them 


    She has received tax refunds to the value £X.
    She will inherit a sum £Y through the Will.
    When the proceeds of the Estate are distributed, the sum £Y will be reduced by £X already received.
  • kelloggs36
    kelloggs36 Posts: 7,712 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    edited 6 December 2024 at 10:36PM
    There was an agreement made in court that she could claim certain things such as contribution towards bills etc in the house that she lived in that belonged to her husband whilst he was in the care home.  She did not request anything towards these things and actually stated that she had not spent any money on these things.  The court said that an agreement should be reached between her and the other holders of the LPAs.  This agreement did not mention anything towards such items.  It was after his death that she has said that she wants to make a claim against his estate for the items and won't sign probate forms until she has received the money.  Surely, no money can be distributed prior to probate being received anyway so they are stuck in this situation where, over a year has passed, and nothing has happened other than her banking the refund cheques for herself.  The impact is that none of the beneficiaries are able to receive any money they have been bequeathed.  She is deliberately holding it all up by holding them to ransom!  There is a piano which one of the family members wishes to have,and she has agreed to this, but only once probate has been received, so again, as she is refusing to sign it, nothing can happen.  Her solicitor is ignoring all the points raised, just saying she is entitled to keep this money she has banked, but has not mentioned or acknowledged the refusal of her signing probate.  
    BIL is seriously considering just sitting back and waiting for her to die (she is in her 80s) now.  Is this an option?  This could be many years of nothing happening.
  • Hoenir
    Hoenir Posts: 5,632 Forumite
    1,000 Posts First Anniversary Name Dropper
    edited 6 December 2024 at 10:44PM
    A claim can be made against the Estate prior to probate being submitted. It will be included as a liability. Settled once probate is granted. 

    Assume there's far more behind this tale than just the money. As the property, the major asset of the estate. Will at some point be passed over to the children of the deceased. 
  • mattojgb
    mattojgb Posts: 150 Forumite
    100 Posts Third Anniversary Name Dropper
     These amounts were rejected by the OPG when she tried to claim for them from his account when he was alive.

    She said that she kept it to pay for the shower that broke in the house - which is not her house, but she has the right to stay there for her lifetime under the term of the will.

    Was a claim rejected by the OPG or just never made?

    Was the house solely in the father's name? If so (and without knowing the full facts - it may be worth doing everything possible to placate the wife in order to avoid a claim under the inheritance act.
  • Mands
    Mands Posts: 817 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    There's a previous thread, from 6 months ago, which includes a great deal more detail.

    https://forums.moneysavingexpert.com/discussion/6524493/what-next/p1
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