Will / trust

Skint_yet_Again

After a battle with the probate office a signed, sealed copy has finally arrived with hologram, one month after probate was granted. 

I am going to close some accounts and transfer the money into the executor account, pay off all overpayments/ debts and set up direct debits for ongoing bills & eventually council tax. Will also arrange to pay pecuniary legacy in the new year. 

Can I just leave the ISA’s until 3 years is up or until house is sold and we are ready to distribute (whichever comes sooner) ? In a way it would be easier to close everything and put it all in the executor account (no interest) but am I under obligation to keep isas open for the interest on behalf of the residual beneficiaries? We don’t need the isa money in the executor account to pay the bills. 

Keep_pedalling

Skint_yet_Again said:

Can I just leave the ISA’s until 3 years is up or until house is sold and we are ready to distribute (whichever comes sooner) ? In a way it would be easier to close everything and put it all in the executor account (no interest) but am I under obligation to keep isas open for the interest on behalf of the residual beneficiaries? We don’t need the isa money in the executor account to pay the bills. 

In that situation I would close them and distribute the proceeds to the residual beneficiaries now, you don’t have to wait until you have liquidated the entire estate you can distribute it in stages. 

Skint_yet_Again

I was just a bit wary of starting to distribute until we at least have some interest in the house. Don’t know how long it will take to sell. 

Keep_pedalling

Skint_yet_Again said:

I was just a bit wary of starting to distribute until we at least have some interest in the house. Don’t know how long it will take to sell. 

I based my last post on you comment that you would not need this money to pay bills, but if may do in the future then best not to touch those accounts at the moment. 

Skint_yet_Again

Thanks @Keep_pedalling we can probably distribute part of the estate in the new year. I think of myself as a realist but some would say I’m a catastrophist. 

What if the house doesn’t sell?
what if it needs a new roof?
how many years will we need to pay council tax?

I will not be able to do anything until next year so will try not to think about it over Christmas 

Skint_yet_Again

Post code lottery took £12.25 from dads  account after date of death but before account was frozen. They entered him into a draw and he won £15. This has been paid into the executor account. Do we treat the difference as income of the estate? (£15 - £12.25 =£2.75)

probate_slave

Absolutely, the £2.75 is non-taxable estate income.

Skint_yet_Again

We are now in a position to pay the small pecuniary legacy. Does anyone have a template for a beneficiary receipt? Do I also show them the will? I will also print a receipt from online banking for the Executor accounts when I complete the bank transfer. 

I was thinking 

Beneficiary receipt
Name of Estate
Executors names and addresses 
Name and address of beneficiary 

I, (name of beneficiary) confirm receipt of £x into bank account (xyz) on (date) in full and final settlement of my share of the Estate above, in accordance with the Last will and testament of (name of deceased)

Signed and dated by beneficiary 

Yorkie1

Skint_yet_Again said:

We are now in a position to pay the small pecuniary legacy. Does anyone have a template for a beneficiary receipt? Do I also show them the will? I will also print a receipt from online banking for the Executor accounts when I complete the bank transfer. 

I was thinking 

Beneficiary receipt
Name of Estate
Executors names and addresses 
Name and address of beneficiary 

I, (name of beneficiary) confirm receipt of £x into bank account (xyz) on (date) in full and final settlement of my share of the Estate above, in accordance with the Last will and testament of (name of deceased)

Signed and dated by beneficiary 

When I was left a legacy, the solicitors simply emailed me "We previously wrote to inform you that XXX has left you a legacy of £YYY in her will.

 Thank you for providing us with your bank details. I confirm this sum has now been transferred to your account.

 I would be grateful if you could please confirm receipt of these funds."

I simply emailed back to say "I have checked my account and can confirm receipt of the legacy from XXX."

So it does not have to be particularly formal.

 

doodling

Hi,

Skint_yet_Again said:

We are now in a position to pay the small pecuniary legacy. Does anyone have a template for a beneficiary receipt? Do I also show them the will? I will also print a receipt from online banking for the Executor accounts when I complete the bank transfer. 

I was thinking 

Beneficiary receipt
Name of Estate
Executors names and addresses 
Name and address of beneficiary 

I, (name of beneficiary) confirm receipt of £x into bank account (xyz) on (date) in full and final settlement of my share of the Estate above, in accordance with the Last will and testament of (name of deceased)

Signed and dated by beneficiary 

The beneficiary isn't required to sign a receipt.

Your full and final settlement wording has no meaning - wills aren't contracts, if you get it wrong the beneficiary can still come after you.

I would simply go for "Received: £<X> in respect of the estate of <Y>." and ask the beneficiary to sign and date it.  If they refuse to sign the receipt there is nothing you can do so don't give them an excuse to refuse.