Do I need an interest bearing Executors account?

Marcon

Rostellan said:

Thank you for your comments really interesting and enlightening on my distinct duties as an executor, I guess I am trying hard to sort it as one of the main beneficiaries is my wife, maybe too hard. Thanks again for your help.

I think you're making your own life needlessly difficult by 'doing more' than an executor needs to/should be doing, and could also inadvertently create complications. It would be much simpler - and in line with your executor responsibilities - to carry out the requirements of the will as stated.

There's nothing to stop you offering whatever support and assistance is needed to get your MIL's flat sorted out in a 'husband' capacity!

eddddy

lincroft1710 said:

As executor, you are obliged to carry out the wishes of the deceased and distribute the estate according to the wishes of the deceased. If an asset of the estate is worth less because of neglect or disrepair, then that is that. It is not the duty of an executor to make good with any monies that are part of the estate.

I can't comment on the role of an executor (because I know very little about that), but it might be helpful to understand the probable situation with the flat - assuming the MIL was a leaseholder of a leasehold flat in England/Wales.

A leaseholder typically doesn't have the option to delay repairs to the building until after a sale.



It sounds like the situation is probably like this:

• The freeholder of the flat is doing a "Section 20 Consultation" because major works to the building are required

• Once the consultation is complete (which potentially could be any day), the freeholder could send a Service Charge bill immediately to each leaseholder.

• It's very possible that the lease requires the bill to be paid within 14 days or 28 days.

• There is no scope to ask for payment to be delayed because the flat is for sale, and I very much doubt that there's scope to ask for a payment delay because the estate is being managed by an executor 

• Replacing a facia sounds like an expensive job - perhaps each leaseholder's contribution will be tens of thousands

• The law says that, if a Service Charge bill isn't paid on time it's a breach of the lease, and the freeholder can take enforcement action - and the leaseholder is responsible for paying the costs of that enforcement action. (No court order or similar is required)

Often, enforcement action taken by a freeholder, and the resulting costs to be paid by the leaseholder, might be...

• Sending reminder letters about unpaid Service Charge - £60 per letter
• Instructing a solicitor to start enforcement proceedings - £1k to £2k
• Instructing Debt Collectors - £???
• Instructing a solicitor to take the leaseholder to court to establish the debt - maybe £4k+
• Instructing a solicitor to start procedure to forfeit the lease (i.e. to cancel the lease, and repossess the flat) - maybe £10k+

So it sounds to me like the OP is being sensible in retaining funds, in case that Service Charge bill arrives, and should definitely pay the bill within the required timescale. 

lincroft1710

eddddy said:

lincroft1710 said:

As executor, you are obliged to carry out the wishes of the deceased and distribute the estate according to the wishes of the deceased. If an asset of the estate is worth less because of neglect or disrepair, then that is that. It is not the duty of an executor to make good with any monies that are part of the estate.

I can't comment on the role of an executor (because I know very little about that), but it might be helpful to understand the probable situation with the flat - assuming the MIL was a leaseholder of a leasehold flat in England/Wales.

A leaseholder typically doesn't have the option to delay repairs to the building until after a sale.



It sounds like the situation is probably like this:

• The freeholder of the flat is doing a "Section 20 Consultation" because major works to the building are required

• Once the consultation is complete (which potentially could be any day), the freeholder could send a Service Charge bill immediately to each leaseholder.

• It's very possible that the lease requires the bill to be paid within 14 days or 28 days.

• There is no scope to ask for payment to be delayed because the flat is for sale, and I very much doubt that there's scope to ask for a payment delay because the estate is being managed by an executor 

• Replacing a facia sounds like an expensive job - perhaps each leaseholder's contribution will be tens of thousands

• The law says that, if a Service Charge bill isn't paid on time it's a breach of the lease, and the freeholder can take enforcement action - and the leaseholder is responsible for paying the costs of that enforcement action. (No court order or similar is required)

Often, enforcement action taken by a freeholder, and the resulting costs to be paid by the leaseholder, might be...

• Sending reminder letters about unpaid Service Charge - £60 per letter
• Instructing a solicitor to start enforcement proceedings - £1k to £2k
• Instructing Debt Collectors - £???
• Instructing a solicitor to take the leaseholder to court to establish the debt - maybe £4k+
• Instructing a solicitor to start procedure to forfeit the lease (i.e. to cancel the lease, and repossess the flat) - maybe £10k+

So it sounds to me like the OP is being sensible in retaining funds, in case that Service Charge bill arrives, and should definitely pay the bill within the required timescale. 

An obligation as leaseholder is different to making a decision to carry out repairs in the hope a property would sell more easily or for more money.


In this case, even if the freeholder will be carrying out essential repairs in the very near future, it could still be months before the executor could sell the flat and service charges, council tax and utility bills will be eating into the estate. The OP is in an unenviable position as executor, and should not distribute any more of the estate.