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Executor's account query

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  • Executor's account query

    Hi all

    My younger brother & I are executors for my (late) twin brother's estate.

    Absolutely no problems with probate, beneficiaries etc. All is progressing without any problems whatsoever. (See, it can be done amicably! )

    The query arises from a meeting with the bank. (Lloyds).

    The (very nice) young lady there has advised us to transfer the 'money' portion of the estate into an executor's account.(It is currently in a sort of 'holding' account)

    But the executor's account doesn't attract interest, whereas the holding account does.

    Has anyone come across this before?

    What would you guys advise?

    Nb the house is still on the market after 2 years (Brexit?), so as yet doesn't figure into the equation (other than the fact that it might be some time yet before the will is settled.)

    Only 1 other beneficiary (sister), & no great panic (so far!)
    CAVEAT LECTOR

    This is only my opinion - "Opinions are made to be changed --or how is truth to be got at?" (Byron)

    You and I do not see things as they are. We see things as we are.
    Cohen, Herb


    There is danger when a man throws his tongue into high gear before he
    gets his brain a-going.
    Phelps, C. C.


    "They couldn't hit an elephant at this distance!"
    The last words of John Sedgwick
    Tags: None

  • #2
    I'd leave it earning a miserly amount of interest

    There is nothing special about an executors account.
    It is advisable to hold the money in a separate account, but that is all, and as your family seem to get along together there should be no probs.

    Comment


    • #3
      Hi des8

      Exactly the conclusion we are tending towards.

      The 'money' portion is reasonably large (not enough to give up the day job, though ).

      Seems daft not to get interest on it.

      Also, I thought there is a general duty for the executor(s) to 'maximise' the estate. (If you see what I mean).
      CAVEAT LECTOR

      This is only my opinion - "Opinions are made to be changed --or how is truth to be got at?" (Byron)

      You and I do not see things as they are. We see things as we are.
      Cohen, Herb


      There is danger when a man throws his tongue into high gear before he
      gets his brain a-going.
      Phelps, C. C.


      "They couldn't hit an elephant at this distance!"
      The last words of John Sedgwick

      Comment


      • #4
        Quite correctly the executors have a fiduciary duty to maximise the estate, but generally this means obtaining the best price for the assets.
        There is also a duty to preserve the assets.
        So if the executor opts for high interest and neglects the security aspect and loses the lot he will be in the doodah

        Comment


        • #5
          Originally posted by des8 View Post
          Quite correctly the executors have a fiduciary duty to maximise the estate, but generally this means obtaining the best price for the assets.
          There is also a duty to preserve the assets.
          So if the executor opts for high interest and neglects the security aspect and loses the lot he will be in the doodah
          So no 'fact-finding' jolly to the Beeehamas, then?
          CAVEAT LECTOR

          This is only my opinion - "Opinions are made to be changed --or how is truth to be got at?" (Byron)

          You and I do not see things as they are. We see things as we are.
          Cohen, Herb


          There is danger when a man throws his tongue into high gear before he
          gets his brain a-going.
          Phelps, C. C.


          "They couldn't hit an elephant at this distance!"
          The last words of John Sedgwick

          Comment


          • #6
            Hi Charitynjw,

            Sorry missed this one over the weekend. Yep agree with Des8. Have debts been dealt with? Could an interim payment be made at this stage pending the house sale? With the way things are going at the moment it may be a while before the house sells unless the price is dropped hugely which no-one wishes to do.

            Any specific legacies could be paid out and then you could get an indemnity from the residuary beneficiaries that should any debts come to light then they will be pursued for a share of the debt?

            Maybe just a holiday to the Bahamas at this stage
            I am a qualified solicitor and am happy to try and assist informally, where needed.

            Any posts I make on LegalBeagles are for information and discussion purposes only and shouldn't be seen as legal advice. Any practical advice I give is without liability. I do not represent people on the forum.

            If in doubt you should always seek professional face to face legal advice.

            Comment


            • #7
              Originally posted by des8 View Post
              Quite correctly the executors have a fiduciary duty to maximise the estate, but generally this means obtaining the best price for the assets.
              There is also a duty to preserve the assets.
              So if the executor opts for high interest and neglects the security aspect and loses the lot he will be in the doodah
              No high interest account, so hopefully no doodah day for us!
              CAVEAT LECTOR

              This is only my opinion - "Opinions are made to be changed --or how is truth to be got at?" (Byron)

              You and I do not see things as they are. We see things as we are.
              Cohen, Herb


              There is danger when a man throws his tongue into high gear before he
              gets his brain a-going.
              Phelps, C. C.


              "They couldn't hit an elephant at this distance!"
              The last words of John Sedgwick

              Comment


              • #8
                Originally posted by Peridot View Post
                Hi Charitynjw,

                Sorry missed this one over the weekend. Yep agree with Des8. Have debts been dealt with? Could an interim payment be made at this stage pending the house sale? With the way things are going at the moment it may be a while before the house sells unless the price is dropped hugely which no-one wishes to do.

                Any specific legacies could be paid out and then you could get an indemnity from the residuary beneficiaries that should any debts come to light then they will be pursued for a share of the debt?

                *Maybe just a holiday to the Bahamas at this stage*
                Hi Peridot

                All outstanding debts have debts have been paid (HMRC were a nightmare!)

                Have to admit though, this got me wobbling!

                *Maybe Costa Del Luton?*
                Last edited by charitynjw; 11th March 2019, 11:26:AM.
                CAVEAT LECTOR

                This is only my opinion - "Opinions are made to be changed --or how is truth to be got at?" (Byron)

                You and I do not see things as they are. We see things as we are.
                Cohen, Herb


                There is danger when a man throws his tongue into high gear before he
                gets his brain a-going.
                Phelps, C. C.


                "They couldn't hit an elephant at this distance!"
                The last words of John Sedgwick

                Comment


                • #9
                  Or a nice meal out at least
                  I am a qualified solicitor and am happy to try and assist informally, where needed.

                  Any posts I make on LegalBeagles are for information and discussion purposes only and shouldn't be seen as legal advice. Any practical advice I give is without liability. I do not represent people on the forum.

                  If in doubt you should always seek professional face to face legal advice.

                  Comment


                  • #10
                    Hi Peridot

                    https://upload.wikimedia.org/wikiped...Chiang_Mai.jpg

                    As an aside
                    My brother' demise was within a year of my father's demise.
                    My deceased brother was a beneficiary of my father's estate, & as he died before my father's estate was finalised, his (brother) share became part of his estate.
                    I read the HMRC 'rules' on this, & my take on this is that there should be no Inheritance tax on that portion.
                    But HMRC has said "Computer says NO!"

                    Any thoughts?

                    CAVEAT LECTOR

                    This is only my opinion - "Opinions are made to be changed --or how is truth to be got at?" (Byron)

                    You and I do not see things as they are. We see things as we are.
                    Cohen, Herb


                    There is danger when a man throws his tongue into high gear before he
                    gets his brain a-going.
                    Phelps, C. C.


                    "They couldn't hit an elephant at this distance!"
                    The last words of John Sedgwick

                    Comment


                    • #11
                      Hi again,
                      I'm not sure you have interpreted the rules correctly I'm afraid. My understanding would be your father's estate would have IHT due unless an exempt estate eg leaving everything to spouse or below Nil Rate Band threshold. Any inheritance passing to another person who dies after the testator but before distribution for example would have the legacy amount included in their estate value for the calculation of inheritance tax. They received the money (or their estate did), unless there was a clause in the Will something along the lines of, if a beneficiary died within 28 days of the testator then their legacy would pass as if they had pre-deceased the testator (and therefore bypass the beneficiary and go to the substitute for example, then the sum would be treated as part of the beneficiaries estate and therefore included in their inheritance tax calculation.

                      I will have a search about and see if I can find anything further to add, but in the meantime can you point me to where you believe this 'exemption' is in the rules?
                      I am a qualified solicitor and am happy to try and assist informally, where needed.

                      Any posts I make on LegalBeagles are for information and discussion purposes only and shouldn't be seen as legal advice. Any practical advice I give is without liability. I do not represent people on the forum.

                      If in doubt you should always seek professional face to face legal advice.

                      Comment


                      • #12
                        Originally posted by Peridot View Post
                        Hi again,I will have a search about and see if I can find anything further to add, but in the meantime can you point me to where you believe this 'exemption' is in the rules?
                        Lol!
                        Not off the top of my head, I can't!
                        I'll have a nosey on my records

                        I'll be back!

                        CAVEAT LECTOR

                        This is only my opinion - "Opinions are made to be changed --or how is truth to be got at?" (Byron)

                        You and I do not see things as they are. We see things as we are.
                        Cohen, Herb


                        There is danger when a man throws his tongue into high gear before he
                        gets his brain a-going.
                        Phelps, C. C.


                        "They couldn't hit an elephant at this distance!"
                        The last words of John Sedgwick

                        Comment


                        • #13
                          Hi again,

                          I wonder if this is what you were thinking of? https://www.gov.uk/hmrc-internal-man...nual/ihtm06035
                          So if a deed of variation were made the estate could be 'redistributed' although it appears that the inheritance would still have to be included in the 2nd estate but a 'relief' claimed in the IHT 400.

                          If an Deed of Variation hasn't been entered into then the claim for relief wouldn't be possible. So far the only thing I have found that may be along the lines of what I think you mean?
                          I am a qualified solicitor and am happy to try and assist informally, where needed.

                          Any posts I make on LegalBeagles are for information and discussion purposes only and shouldn't be seen as legal advice. Any practical advice I give is without liability. I do not represent people on the forum.

                          If in doubt you should always seek professional face to face legal advice.

                          Comment


                          • #14
                            Cheers Peridot

                            Looks like that might be it.
                            ​​​​​​​Mr Shylock at HMRC wins again!

                            Unfortunately I can't access my emails which I sent to my co-executor.
                            I suspect that's due to this!

                            I've tried 'phoning him, but as 'nobody home' atm

                            I'll try later.
                            CAVEAT LECTOR

                            This is only my opinion - "Opinions are made to be changed --or how is truth to be got at?" (Byron)

                            You and I do not see things as they are. We see things as we are.
                            Cohen, Herb


                            There is danger when a man throws his tongue into high gear before he
                            gets his brain a-going.
                            Phelps, C. C.


                            "They couldn't hit an elephant at this distance!"
                            The last words of John Sedgwick

                            Comment


                            • #15
                              Hi Peridot

                              Found it!

                              Bit of background info.
                              My mother died first, so my father's estate included her portion (suitably time-adjusted by HMRC).
                              Father died - estate was a little over the threshold (circa £60k?) - all sorted with HMRC.
                              Brother died within 1 yr of father.
                              As far as I can see there is a sliding scale for QSR?
                              Guidance on the assessment, collection and accounting of Inheritance Tax
                              Last edited by charitynjw; 11th March 2019, 23:29:PM.
                              CAVEAT LECTOR

                              This is only my opinion - "Opinions are made to be changed --or how is truth to be got at?" (Byron)

                              You and I do not see things as they are. We see things as we are.
                              Cohen, Herb


                              There is danger when a man throws his tongue into high gear before he
                              gets his brain a-going.
                              Phelps, C. C.


                              "They couldn't hit an elephant at this distance!"
                              The last words of John Sedgwick

                              Comment

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