Where to put estate sale proceeds?

vigman

Hi

Hope this is the right section. 

We will be selling my mother’s home soon and I’m just wondering where is best to put the sale proceeds (c £400k) before distributing between three siblings after expenses?

Obviously this amount isn’t covered by the banking guarantee and also would get no interest in a current account but seems awkward to split up before distribution?

Equally, where do I put my share (£133k?) please

TIA

user1977

There is a temporary higher limit for proceeds of property sales:

Temporary high balances | Check your money is protected | FSCS

Any reason not to make an interim distribution (after a conservative estimate of expenses)?

Hoenir

When the monies are received make an interim distribution to the beneficiaries. After making due allowance for any unsettled liabilities. 

Famau

I had a similar quandary.  I actually distributed most of the funds the moment they came in and could be released - holding back just a modest amount to cover potential income/estate tax.  So finding interest-earning accounts wasn't an issue.

Regarding your 133k - all depends on circumstances.  Do you need early access; what is your savings position; what is your age; what is your risk appetite and so on.  Perhaps while pondering these sort of questions depositing the funds into a couple of easy access interest-paying accounts might be best.  A good rate with Atom for example at 4.85% so long as no withdrawals in a given month.  But you will need at least two accounts with separate institutions of course for protection.  Lots of alternatives out there

Good luck with it all....

Bigphil1474

When we did  my dads house, we just distributed it as soon as received, but we weren't using a solicitor for the estate management, just the sale of the property. Not as much as you are dealing with though, but the solicitor may issue you the funds individually if they are handling the estate, and that would be after costs.

Maybe ask what the other 2 beneficiaries want to do, but I'd probably split it into 2 payments each to 2 separate establishments. Assuming you are the executor, if you are all due £133k, I would pay out £130k each and leave £9k for miscellaneous, and pay that out later if not used.