Legal administrator of estate best option

cattie

I hope I'm posting in the correct place. I've recently drafted a new will via an online company. I have no children alive, no grandchildren, divorced & live alone. I do have a sister, older than me who has cancer, so chances are she will die before me. I'm now in my mid 70's.

My issue is that I have nobody else close who knows me really well to be executor & administer my estate. Currently I have listed the daughter of a friend, on the basis that she is one of the few people younger than me that I know.

If I were to pop off tomorrow, I estimate my estate will be worth in region of £900000, which includes my current property, investments & savings. Over half of my estate is destined for around 6 charities, the remaining portion going to around 5 friends, none of who are really close friends as those have sadly died, along with other close relatives, they are just people I've known for a good number of years.

I've decided I will have one of the simple cremations that are so popular now on my demise with no kind of function as a send off. Due to the size of my estate & no close family to inherit, I'm wondering would it be wise to elect a company to be legal administrator of my estate when the time comes? As far as I can gather, it would likely cost around £15k to choose this route with current assets. I'd be grateful for any opinions on this or an alternative suggestion.

Brie

Is there the option to have one of the charities do the work? After all they're going to benefit.

silvercar

I agree with asking one of the charities.

Or any of the offspring of closer relatives that have died?

moneysaver470

Trying not to cry here* but wonderful thing you're doing by giving it to different charities. Having said that, I don't think charities would manage someone's estate given the complexity and work involved so would have to be a solicitor (who charge an arm and a leg)

Keep_pedalling

For such a large estate, I would not touch an on line will writing company with a large barge pole. Have you spoken to the person you have appointed as your executor, and if so are they aware of what they are taking on?

Personally I would have gotten a local solicitor to draft the will and appoint them as executors. I would also start looking at spending some of that £900k on a decent bucket list.

elsien

https://forums.moneysavingexpert.com/discussion/comment/81991510#Comment_81991510

They might if there was enough in it for them.

Mands

https://forums.moneysavingexpert.com/discussion/comment/81991545#Comment_81991545

And if that bucket list includes any travel then engage a paid companion. Someone to carry bags or flag down taxis or, frankly, anything that makes your travel experience easier.

cattie

The person I've currently listed as executor is the daughter of an elderly friend of mine. Both the current executor & her 2 children will be beneficiaries. They know me reasonably well but have no idea of the size of my estate or the fact that they are listed as beneficiaries.

The only other relatives I have are the 2 sons of my sister, both of whom live abroad, we are not close, they have never visited any of my homes over the years & I've never been invited to holiday with them & their families, so I've not chosen to include them in my will or have either of them as executor.

For the most part, the charities I've chosen are quite small, apart from the local branch of Cat's Protection & the Salvation Army & doubt they would be interested in administering my will. As for a local solicitor, one recently went into administration, leaving just one other practice in the area. I'm not keen on choosing a stand alone solicitor really as the one handling my mothers very small estate wasn't very efficient & grossly overcharged. So I believe it could work out even more expensive than the £15k guide from the place I'm considering appointing.

Ha, I wish I had a bucket list, but I don't. I live a fairly simple life, haven't had a holiday in over 20yrs there being nobody to go with & never fancied holidaying alone.

I'd give a fair amount away to the smaller charities now, but I have to consider I could last for a good few years yet & possibly end up needing care. Because I very recently lost another very dear friend following a very short illness, this is what has made me want to do my best to get my affairs in order.

Mands

https://forums.moneysavingexpert.com/discussion/comment/81992526#Comment_81992526

The charities are in line for a bequest of 50k+ each? They absolutely would administer your will.

The Salvation Army has a section on their website about the necessary steps when they are appointed as executors. There is also an email address you can contact them on.

https://www.salvationarmy.org.uk/gifts-wills/guidance-executors

Keep_pedalling

https://forums.moneysavingexpert.com/discussion/comment/81992526#Comment_81992526

With an estate of £900k I really don’t see why you are worrying about care costs, even if you spent all you liquid assets you still have your home to pay for residenciAl care if you need it.

As it seems the person you have appointed as executor has no knolage of you actual worth, I will repeat my previous advice. Get a new will drafted by a local solicitor and appoint a professional as executor.

Albermarle

Also be aware that your estate will be liable for Inheritance tax, so an extra complication for any executor who is not very understanding of money matters.

On the plus side, if half your estate goes to charity, none of that money will be counted for IHT purposes, and what money is liable for IHT will be charged at a reduced rate of 36% instead of 40%.

So £900K minus £450K ( to charity) minus your nil rate band of £325K = £125K X 36 % = £45K tax to pay ( approximately based on the info you have given)