Cheques from deceased person

Misha96

Last year, a dying friend wrote a number of cheques for several people not included in his Will. The majority of the cheques were not banked and have been handed over to the executors. 

There is contention about the status of the cheques. Some recipients believe they will receive the sum they were gifted following grant of probate. I don’t think the cheques have more than a paper value unless the executor wishes to gift the money from his share of the deceased liquid assets.

 Who is correct?

MattMattMattUK

Misha96 said:

Last year, a dying friend wrote a number of cheques for several people not included in his Will. The majority of the cheques were not banked and have been handed over to the executors. 

There is contention about the status of the cheques. Some recipients believe they will receive the sum they were gifted following grant of probate. I don’t think the cheques have more than a paper value unless the executor wishes to gift the money from his share of the deceased liquid assets.

Who is correct?

It is complicated, especially as the recipients handed the cheques to the executor(s), they should have cashed them. I am guessing that you feel that you should get that money, rather than the recipients intended by the deceased? 

The reality is that this would almost certainly need a judge to decide if it is not agreed to pay them out from the deceased's estate. 

Tucosalamanca

I'd view a cheque as being similar to a promise to pay.

Should they not be treated as liabilities and honoured before the estate is distributed?

The cheques should have been cashed by the recipients, rather than handed to an executor, that would have prevented this situation.

I don't think it's a case of 'gifting', rather an executor looking to bump people who would otherwise have legitimate claim to the money. Pretty dishonourable behaviour, imo.

elsien

I would count them as a debt to the estate which need to be paid before anything else is distributed. 

No idea why the people concerned decided to hand them to the executor rather than pay them into their accounts- did the executor ask for them?

FlorayG

Is there a reason they were not cashed? I think there's more to this than the OP is letting on; if someone gives ME a cheque I pay it in ASAP and even if I didn't, I wouldn't think to hand it to the deceased's executors

Sea_Shell

Misha96 said:

Last year, a dying friend wrote a number of cheques for several people not included in his Will. The majority of the cheques were not banked and have been handed over to the executors. 

There is contention about the status of the cheques. Some recipients believe they will receive the sum they were gifted following grant of probate. I don’t think the cheques have more than a paper value unless the executor wishes to gift the money from his share of the deceased liquid assets.

 Who is correct?

What timescales are at play here?

Time between writing and handing out the cheques and dying?

It probably doesn't change the legal status, but if a significant period (weeks rather than days) , then the recipients haven't helped their situation.

The accounts should be frozen and so the cheques are probably invalid, but IANAL.

Misha96

Sea_Shell said:

Misha96 said:

Last year, a dying friend wrote a number of cheques for several people not included in his Will. The majority of the cheques were not banked and have been handed over to the executors. 

There is contention about the status of the cheques. Some recipients believe they will receive the sum they were gifted following grant of probate. I don’t think the cheques have more than a paper value unless the executor wishes to gift the money from his share of the deceased liquid assets.

 Who is correct?

What timescales are at play here?

Time between writing and handing out the cheques and dying?

It probably doesn't change the legal status, but if a significant period (weeks rather than days) , then the recipients haven't helped their situation.

The accounts should be frozen and so the cheques are probably invalid, but IANAL.

I think it was only days.

Misha96

elsien said:

I would count them as a debt to the estate which need to be paid before anything else is distributed. 

No idea why the people concerned decided to hand them to the executor rather than pay them into their accounts- did the executor ask for them?

I don't know whether the executor requested the cheques. I think it likely that he will regard them as debts to the estate.  Thank you.

FlorayG

Misha96 said:

Sea_Shell said:

Misha96 said:

Last year, a dying friend wrote a number of cheques for several people not included in his Will. The majority of the cheques were not banked and have been handed over to the executors. 

There is contention about the status of the cheques. Some recipients believe they will receive the sum they were gifted following grant of probate. I don’t think the cheques have more than a paper value unless the executor wishes to gift the money from his share of the deceased liquid assets.

 Who is correct?

What timescales are at play here?

Time between writing and handing out the cheques and dying?

It probably doesn't change the legal status, but if a significant period (weeks rather than days) , then the recipients haven't helped their situation.

The accounts should be frozen and so the cheques are probably invalid, but IANAL.

I think it was only days.

Ah you neglected that important bit of information in your first post, it looked like it had been months. If the deceased was compos mentis when they wrote those cheques then the estate should honour them; after all, if the recipients had paid them in the day they got them then they would have had the money

Misha96

Tucosalamanca said:

I'd view a cheque as being similar to a promise to pay.

Should they not be treated as liabilities and honoured before the estate is distributed?

The cheques should have been cashed by the recipients, rather than handed to an executor, that would have prevented this situation.

I don't think it's a case of 'gifting', rather an executor looking to bump people who would otherwise have legitimate claim to the money. Pretty dishonourable behaviour, imo.

Tucosalamanca said:

I'd view a cheque as being similar to a promise to pay.

Should they not be treated as liabilities and honoured before the estate is distributed?

The cheques should have been cashed by the recipients, rather than handed to an executor, that would have prevented this situation.

I don't think it's a case of 'gifting', rather an executor looking to bump people who would otherwise have legitimate claim to the money. Pretty dishonourable behaviour, imo.

Having read the contributions here I believe the cheque values will be regarded as estate debts. 

Yorkshire_Dangermouse

I'd tend to agree, that if the cheques are still 'valid' (typically 6m after they are dated) then they should be included as a debt of the estate.

I suppose that the recipients may have handed them back anticipating that the bank accounts would be closed, and the cheques would be rejected?