Will / trust

Skint_yet_Again

We have still not received a valid grant of probate. Either the wording is incorrect or no hologram. 

Not sure what to do about the pecuniary legacy.??  Still waiting for the house to sell & council tax finally agreed cat F exemption applies. Council tax will become payable at 100% in 6 months then at 200% 6 months after that which would be upwards of £2500 a year. There is over £150k in savings so should hopefully be plenty to cover until house sells. 🤞 Should I pay the pecuniary legacy before estate is settled while we are still accruing debts (water, energy, council tax) ??

Savvy_Sue

If you are CONFIDENT that the 'plenty' will cover all the expenses which may arise, then you could go ahead and pay the pecuniary legacy. If it's a very large% of the £150k, I'd hold back. 

Also I found that while the house was unoccupied prior to sale, the water bill was frozen - obviously we were only using tiny amounts, on brief visits, but no charge for these. 

Skint_yet_Again

Thanks @Savvy_Sue. I don’t think I am confident so I think I will wait. The pecuniary beneficiary does not know yet as I believe they would be asking for it and I know they could do with the money. The codicil is £3k but who knows if / when house will sell or if something expensive will need to be done / paid for. 

Water is on a meter & we are receiving bills albeit low usage. I’m looking for a lower standing charge energy tariff.  

Skint_yet_Again

Still waiting for grant of probate with hologram 😞 complaint has been made but they seem to be in no rush 

No house viewings. Nearby houses have sold at similar/ higher prices. 

How long do residuary beneficiaries have to wait before receiving anything? Is it after the house sells? Council tax is in exemption for 6 months after Probate then will be due af 100% for another 6 months then 200%. Gas / electric & water bills are coming due once actual probate arrives I will set up direct debits from the executor account. 

What would happen if the house never sells? 

Tresinia511

The house will sell.  2 houses for sale by me which would have flown off the shelf anytime in the last 5 years,  been on market since autumn.  The house WILL sell.  I wouldn't think about it now again until spring, then review 

Skint_yet_Again

Skint_yet_Again said:

How long do residuary beneficiaries have to wait before receiving anything? 

Can anyone advise re this please? 

Can pecuniary beneficiaries get paid before house sale & before residuary beneficiaries? 

poseidon1

Skint_yet_Again said:

Skint_yet_Again said:

How long do residuary beneficiaries have to wait before receiving anything? 

Can anyone advise re this please? 

Can pecuniary beneficiaries get paid before house sale & before residuary beneficiaries? 

Depends on the amount of the legacies relative to the cash you have on hand to meet ongoing property costs. Certainly they get paid before residuary beneficiaries but not at the expense of cost of maintaining the house until sold.

If the estate is a little strapped for cash you dont want to pay out to pecuniary legatees only to find there is only a little left in the kitty for ongoing estate liabilties until sale. If you were a professional solicitor executor in this position, you would excercise appropriate prudence. Hopefully you are not being pressured by the legatees?

I appreciate that statutory interest may begin to run on the legacies, but that can't be helped in the case of an asset rich, cash poor estate. 

Skint_yet_Again

Thanks @poseidon1 the pecuniary legatee doesn’t know but I know they could do with the cash. 

Estate = 

Cash £180k +
house £170k probate value
pecuniary legacy £3k
no iht

Isa’s are still running. I understand the interest is tax free and non-taxable interest of the estate for 3 years? 

Property empty and on the market. 6 months more exemption on council tax, then will pay 6 months at 100% = £120 a month approx. Then 200%. After 5 years 300% then 400% after 10 years. 
Insurance under £500 & gas/electric & water meter to pay. 

Probate granted in Nov. Just waiting for documentation (a whole other saga). 

Edit - so residual beneficiaries get nothing until house sold & all outgoings paid but we could pay pecuniary legacy? 

poseidon1

With that significant level of cash cushion I see no reason to delay paying the legacies of such a small amount, other than the fact probate has been delayed for a little while.   

Once probate obtained I would certain satisfy the pecuniary legatees and tick that off your 'to do' list.

Savvy_Sue

As for your concerns over the sale of the house, it's easy to get hung up on how much a house is worth. It's worth only as much as someone is prepared to pay.

So if it doesn't sell, you reduce the price, and maybe you send it to auction without a high reserve. You have evidence that it did NOT sell for what the beneficiaries thought it was worth. End of discussion.