Difficult beneficiary

Time_2020Jan

I’m non-professional executor for my late father’s estate.  A sister, residuary beneficiary, has been particularly difficult with many requests for accounts, asking how decisions have been made, valuations for assets, wanting to know debts and has tax been paid etc. 

A bit of back history, sister wasn’t involved in dad’s life for nearly 20 years (her choice).  Dad was terminally ill and left her equal shares Will alongside myself and other sister.  Sister didn’t attend hospital for visits, didn’t come to funeral etc.  She hadn’t fallen out with Dad for any reason, just think time had passed and he wasn’t in her life much so she wanted to stay out the whole terminal illness ‘event’ and turned down requests to visit. 

I’ve been handling the estate and fine so far, no issues.  All payments to beneficiaries made and debts paid.  We are interim status - as there is a house to be sold in 5 years with a further profit share going to sister. 

Sister had a personality change it seems – she unexpectedly emailed 15+ times asking for accounts, receipts, what payment went to what beneficiary, amounts, valuations, how was administration, decisions made etc.  Did not want to meet up or phone, cut off all contact except email.  I’ve explained we are interim period and given a financial summary (as my solicitor advised was best) and that Will made the decisions.  6 months later, she’s come back to say give her same information as before again plus accounts etc – and if I don’t comply within a month she will do Account & Inventory Order and “force me as executor to do what’s right”.  It’s like she’s denied receiving any information or money before. 

I’ve asked her why she wants this level of detail – but responses are ‘she’s entitled to it.”

I’m having a hard time being controlled here, and my time is limited to do the accounts and details she’s asking for.  Has anyone else been in this situation?  I’m meeting with solicitor for some advice on what I do provide/not provide. 

I’m struggling with her morals on never being in contact with my dad, but taking his money and then wanting to scrutinise his accounts and have all his details.  She had £30,000 inheritance and is due more when house sells.

Albermarle

Personally I would not reply directly to any questions, and let the solicitor reply.

It sounds like you will not be having much of a relationship in future anyway.

Time_2020Jan

Thank you Albermarle that’s good advice. I think you’re right, future is looking bleak.

Someone told me “where’s there’s a Will, there’s a relative”. Very true!

poseidon1

Why exactly is there a 5 year moratorium on selling your father's property, and is this (long) delay a partial reason for sister's current aggression and nit picking?

As regards executor's accounts, were interim accounts prepared and circulated with the first distributions to estate residuary beneficiaries, and did those accounts clearly show the only remaining estate administration task is the eventual disposal of the property?

Incidentally is there likely to be an appreciable gain on eventual sale? Bear in mind that beyond 3 tax years after deceased's death, the estate CGT allowance of £3,000 disappears entirely with a 24% tax rate on all gains thereafter. Therefore a sale after 5 years gurantees no CGT allowance available - see HMRC guidance below

https://www.gov.uk/guidance/capital-gains-tax-rates-and-allowances

With this in mind, you could be found at fault in not considering an assent of the property pre sale in favour of the beneficiaries in equal shares, thereby freeing up 3 lots of £3,000 CGT exemptions and potentially reducing individual CGT rates to 18% depending on your respective income tax status.

Given your sister's volatility, best to ensure your admin and tax planning is beyond reproach.

Time_2020Jan

Thanks to WillowLeaf and poseidon1 for responses.

I’ve kept a timeline and all correspondence in case it does escalate.

5 years was to give time for the spouse to leave the house, but live there mortgage free for a time.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82098591#Comment_82098591

Family friend had a similar scenario, with an estranged sister making all sorts of unsubstantiated claims and threats. The friend, who was the Executor, and their solicitor had all bases covered. After a suitable waiting time the solicitor wrote to the Sister threatening a 'Put up or Shut up' order. Nothing further heard……

Put Up or Shut Up Probate

A 'Put Up or Shut Up' order, also known as a Cobden-Ramsay order, is a legal directive that requires a claimant to either issue their claim within a specified timeframe or lose the right to do so. This order is particularly useful for executors and trustees who are frustrated by claims that are not progressing. The order ensures that the executor can continue with the administration of the estate without the risk of personal liability if a claim is later pursued. Executors can apply for this order to protect themselves from potential claims that have not been properly initiated.

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/82099542#Comment_82099542

A bit unusual for a surviving spouse not to be given a lifetime right to occupy the marital home.

Is the 5 year period as dictated by your father's will, and will the spouse have the financial means to acquire their own property at the expiry of the rent free occupation period ?

If this arrangement is not stipulated by the Will is this another bone of contention with the sister?