Executor without executor account. Problems?

starlights

I’m sorry if this is the wrong board, I wasn’t sure where my query belonged.
Myself and my daughter are executors for my mother. We did not have an executor account but I opened a ‘space’ in my Chase account so that anything to do with my mother’s affairs went through there. This has worked very well. 
I now wonder if we will have a problem though. The house is being sold and the beneficiaries are myself and my brother. (The solicitor has asked my daughter to send a letter indicating that she agrees with the money going into an account in my name only). When I receive the money and this is then split between myself and my brother. This then will look as though I have gifted him a great sum and if I don’t live for 7 years my beneficiaries could lose out on tax etc.
I don’t think I have time to open an executor account now. Can this amount transferred to my brother just be explained by showing my mother’s will if there are complications down the line?

maman

I don't think it will be a problem. I did almost exactly the same thing when my mother died.

 My brother and I were executors and we agreed that I would do all the paperwork and he'd do practical stuff like clearing the property and dealing with the estate agent.

I used a 'spare' account that I already had and also kept a spreadsheet showing what all payments and receipts were for. When it was completed, I transferred the money to my two brothers who were also beneficiaries. I did get a phone call from the bank to ask why I was transferring a large sum of money to one brother (different surname so they didn’t know who he was) but when I explained all went through fine. 

RAS

If anyone queries it, brother can just get a copy of the grant of probate indicating you were executor. Maybe send the other beneficiaries copies of the letter re paying money into your account?

starlights

Thanks, just my brother and I are beneficiaries. He is abroad which is why he wasn’t an executor.

poppystar

If your brother wasn’t abroad I’d be tempted to instruct the solicitor to split the house proceeds after costs and send half to you and half to your brother, if only so that this isn’t a niggling worry for you. With him being abroad I suspect that would be more trouble to do than the little piece of mind it would bring. Just document it all and give copies of the accounts and details of the movement of monies to your daughter or whoever will be your own executor. If the account is an interest one (Chase saver?) then also ensure you assign the interest to the estate and can show that to HMRC in the event it puts you over your personal savings allowance. Hopefully that won’t be an issue but keep your eyes on it in case. 

starlights

Yes, I thought a solicitor should be able to split it. I’ll ask again. 

doodling

Hi,

It will be absolutely fine.  Just keep good records - the combination of the grant of probate, your bank statements and the estate accounts should be sufficient to convince people that you were acting as an executor rather than in a personal capacity.  I personally would avoid interest bearing accounts for the money as executor unless you are going to hold it for a reasonable time the interest isn't usually worth the admin.

Note that this may technically be in contravention of your Ts&Cs with Chase (which may prohibit you from using their accounts for monies you hold on trust) but that is a commercial matter between you and them and what they don't know they can't argue about, especially if it is only for a short time.

DancingBadger

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