Solicitors/Executors Say We Have to Wait 6 Months

[redschuhart]

My wife's father died in October 2017. He chose a firm of solicitors to act as executors of his estate. To say they have been less than forthcoming with the procedures and what happens when is an understatement. Probate has now been granted, in May this year.
The thing that we do not clearly understand, and that has not been clearly explained to us by these solicitors, is this 6 month wait before beneficiaries can receive their inheritence. They are saying it's because of indemnity insurance, but is this correct? Do we have to adhere to this or can this wait be reduced?

[Amethyst]

I believe this is a 6 month period where an advertisment notice is placed after probate for unknown creditors to come forward before the estate is split and passed on to beneficiaries. If it is distributed before expiry of the notice it could be the executors that are liable ( presumably that's what they mean by indemnity )

Peridot will know for certain whether this is actually a legal requirement or simply a bottom covering exercise.

[des8]

Hi and welcome.
Technically there is no legal reason why the executors of an estate can't distribute the assets immediately on obtaining the grant of probate.
However they do so at the risk of having to pay from their own pocket if a previously unidentified beneficiary or successful claimant appears later.
To insure themselves against such problems a prudent executor will effect an indemnity policy to cover such an eventuality.
It would be a condition of such a policy that distribution would not take place until after the passing of 6 months from the date of the grant of probate

[Amethyst]

Thanks Des8 xxx

[Peridot]

Hi Redscuhart,

If the executors are the solicitors, then they will ensure that they do wait the 6mths, in case any claim is forthcoming against the estate. If they paid everything out then they could potentially be personally liable if a claim was later forthcoming and they had not kept back funds to deal with it. They will also have to wait for DWP to confirm there are no outstanding payments due to them for example if an overpayment had been made and HMRC have to provide clearance on any tax issues both during the persons lifetime and following their death. As with any public department they can unfortunately move in their own time, which can be frustrating to say the least.

Unfortunately estates can take a while to value the assets and complete the necessary forms to obtain probate which may be part of the reason for the apparent delay in obtaining the grant..

The clock doesn't start ticking as far as the 6 month window is relating to any potential claims being made against the estate under the

Inheritance (Provision for Family and Dependants) Act,

until the Grant has been issued.

In addition they have to ensure that any creditors have come forward although this is generally covered with the section 27 notice that Amethyst mentioned which can be placed as soon as the person dies and has to be published for a 2month period so this should already have been done. This is a separate issue to the 6 months limit.

Hopefully that clarifies things?