What will happen if I, as a beneficiary, refuse to sign Receipt and Release/Indemnity?

Tulip85

What will happen if I, as a beneficiary, refuse to sign Receipt and Release/Indemnity?

I am happy to agree that I am satisfied with my quoted share of the Estate but as I’ve had little/no involvement with the deceased’s or Executors’ accounting, I don’t agree that I should need to indemnify if the accounts are wrong.

Keep_pedalling

This is not anything any beneficiary has to do and the executor cannot withhold an inheritance if you don’t. Is this a professional executor?

poseidon1

This seems to be a growing phenomenon especially where solicitors are handling the estate administration and wish ( for whatever reason) to provide belt and braces protection for themselves and/or client by shifting potential liability onto beneficiaries.

This was discussed in a Trust discussion forum below

https://trustsdiscussionforum.co.uk/t/beneficiary-indemnity/9556

I am in agreement with Paul_Davies viewpoint in the discussion, ie beneficiaries are not obliged to give indemnities , whilst in the case of charity trustees, the trustee/directors are pretty much forbidden to do so.

But where does that leave the OP if they refuse and distribution withheld?

Rather than a point blank refusal to provide a personal indemnity, OP could counter propose that if the executor has genuine concerns of future claims emerging against the estate after distribution, they explore insurance against that risk as set out in the article below :

https://todayswillsandprobate.co.uk/are-final-distribution-indemnity-forms-causing-you-a-headache/#:~:text=DUAL%20Asset%20also%20has%20a,located%20and%20Inheritance%20Act%20claims.

Effectively, OP you are stating there is no reason at all for you to extend personal protection to the executor for unknown potential claims, when such protection is commercially available in the marketplace.

Tulip85

Thank you so much for your advice.

I will respond as you suggest.

🙂

Tulip85

https://forums.moneysavingexpert.com/discussion/comment/81872328#Comment_81872328

Hi again,

I responded as you suggested but have heard nothing further since. What would be a reasonable time to expect a response from the solicitor concerned?
Regards,

gplion55

Beneficiaries are generally not responsible for this. It is the executor who must manage these things. You should receive your share of the estate whatever and if there is undue delay you can take legal action.

If they insist then ask for a copy of the accounts. That's the least that they should do if you are expected to sign something of this nature.

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/81890246#Comment_81890246

They may be cogitating over your unusual response ,most beneficiaries would have no idea executors can take out insurance in this situation, and it is possible the solicitors themselves were unaware.

GIve it until end of week, then fire off another demand for your estate share, and point out interest should be running if they insist on delaying much longer.

In the meantime and assuming you are a residuary beneficiary , have they ever sent you a copy of the estate accounts you are entitled to, prior to this delayed final distribution?

Tulip85

https://forums.moneysavingexpert.com/discussion/comment/81890571#Comment_81890571

Hi,

Yes, I am a residuary beneficiary. They have provided a copy of the estate accounts but they are very poorly managed, unclearly entered onto a spreadsheet. They have also claimed for items that I don’t agree with. I have told them that I am happy to confirm that I have seen their accounts but will not sign to agree to indemnify them against any mistakes or further claims on the estate.

Regards,

🙂

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/81891158#Comment_81891158

Not a good sign that the accounts they have supplied lack clarity, and maybe a testament to someone's lack of accruate numeracy skills ( solicitor or exectutor).

Hopefully that is not a reflection of how the estate has actually been administered, but certainly supports your position not to sign off an indemnity.

You don't want to have to take legal action to recoup what you are owed, but if delays continue you may well need to threaten such action to demonstrate you will not budge from your position.

Tulip85

https://forums.moneysavingexpert.com/discussion/comment/81891189#Comment_81891189

I have previously taken a solicitors advice to address previous misdemeanours from these executors so I will ask them to follow up if I don’t hear anything soon.

Thanks for your advice.

🙂