Do legaties need to sign off on estate accounts?

[Mattdamon]

I was under the impression that only an executor and/or the residual beneficiaries need to sign off on the draft state accounts, but the solicitor acting for the executor is asking for the legaties to sign off on the accounts saying that 'in this instance we have been carrying out work on behalf of the legatees in relation to their properties and so we want to ensure that the costs and expenses are agreed by the relevant parties.'

Does this sound correct or can they distribute the estate without all the legaties signing off the estate accounts?

Thanks in advance.

[EnglandPi]

There is no need for the beneficiaries or legaties to sign off the accounts but if the solicitor is asking them to sign the accounts it is just the solicitor being efficient. to avoid any disputes further down the line but no signature is actually required.

[Mattdamon]

Englandpi, thanks for the reply.

Can the solicitor refuse to distribute the estate because one of the legaties has not signed off on the accounts?

[EnglandPi]

The beneficiaries don’t sign off the accounts. They only sign as a formality and there is no requirement for them to sign anything. The solicitor cannot refuse to distribute the estate. If they did, they would be going against the terms of the will.

[Mattdamon]

Thanks again,
So the solicitor is saying if we don't all sign they may need to delay the final payments by 32 days.

[EnglandPi]

Tagging for second opinion @pt2537 des8

[Mattdamon]

The solicitor is saying
'The executor has requested that funds be retained for 32 days in case of any dispute being raised following the final bill that may need to be defended'.

[EnglandPi]

The solicitor is saying
'The executor has requested that funds be retained for 32 days in case of any dispute being raised following the final bill that may need to be defended'.

That’s a different story. The solicitor takes instructions from the executor and is just obeying the wishes of the executor which the solicitor is bound to do. Have you seen the accounts of the estate?

[des8]

Bear in mind that the executor has up to a year in which to settle an estate (and even this is a very elastic time schedule) so if the distribution is made within this time limit, it has not been delayed.
Legacies paid outside of this time may be entitled to interest.

Is a month's delay all that important?

[Mattdamon]

Thanks for yourswers.
It has been going on since August 2018,
it's a long story, but in short,
The residual beneficiary has been threatening various actions from a few months into the process. The legatees have always maintained that the wishes in the Will should be fulfilled and never challenged anything.
The residual beneficiary has for the last six months been threatening to challenge the legal fees, but has finally decided to accept them if she receives her money within 14 days of a letter sent on the 26th of Feb. We (the legatees) received notification of this on the 9th of March with the request to sign letters of authority agreeing to the accounts etc.

[Mattdamon]

To add, a months delay more is not an issue for us other than if the residual beneficiary might use it as an excuse to cause more trouble.
The solicitor has also said that if she does challenge the fees then they will use the estate funds to defend the claim which could mean that if the money from the residual estate is used up then it will eat into the other legacies!

[des8]

Situation clearer now.
I can fully understand the solicitor/executor wanting to minimise the risk of the awkward one causing problems after distribution.
However that is one of the risks that an executor assumes when they take on the task, and why if they are sensible they take out executor's Insurance.
The solicitor will be carrying Professional indemnity insurance, and she is ensuring that all "i's" are dotted and "t's" crossed in case she needs to make a claim

If there is a court case to defend, and the beneficiaries' claims are adjudged to be ill founded and malicious, the beneficiary could face an adverse costs order. The costs of defending would then not be taken out of the estate

[Mattdamon]

Thank you Des8,
so is it fair/reasonable to withhold the funds of the legatees because of a possible claim brought by the residual beneficiary.
Also I don't see what difference the extra 32 days will make If one of the legatees is unwilling to sign off the accounts. If anything it is more likely to enflame the situation with the residual beneficiary since she has accepted the fees on the condition of getting her funds by the 12th.

With regards to signing, It is tricky because we are not exactly happy with the work of the executor and solicitors but ultimately I don't think any of us legatees are likely to bring a claim since the residual beneficiary is the one who has messed about the most and suffered the consequence financially (hence she was threatening to make a claim against the fees). One out of four legatees does not wish to sign on the grounds that even with more time he won't be able to understand the figures properly and thus won't sign what he doesn't understand. I actually agree but I am over it all and have signed just to try and get it done as are the other two legatees.

[des8]

is it fair/reasonable to withhold the funds of the legatees because of a possible claim brought by the residual beneficiary.

I'm not sure that is the right question!
Shouldn't it rather be "is the beneficiary right to consider disputing the costs?" especially as you hint many of you were unhappy

But in any event the trouble with having executors who act unsatisfactorily is that it is difficult to do anything about them.
They can be removed and replaced, but that takes time and money and is not easy because of the need to show how the executor is not suitable.

So most people just put up with what they got and like you realise it's not worth the hassle to challenge them

[Mattdamon]

We were/are unhappy with how we were treated, particularly in light of the fact that we have never challenged anything, and you could argue that we would agree that much of the fees are unnecessary, but we feel that is as much or more down to the residual beneficiary as the solicitors and executor, so we are non sympathetic to her wanting to make a claim. Even if we wanted to, as you say it's a long road with much risk so it would be unlikely we would ever go down that route. We did think about trying to get the executor removed earlier on but again like you say it's (for lack of a better expression) a ball ache so we decided to grit our teeth and ride it out and hope that the residual beneficiary would see sense. Unfortunately we think she has been getting bad legal advice which has now cost her around three quarters of her inheritance not including the cost of her own council, it's completely insane!

So now I suppose I feel we are potentially at the end of the tunnel but if the executor holds back the funds for another 32 days then we might miss the chance to end this. What I don't understand is what difference the extra 32 days will make if the legatee will not sign off the accounts.

Thanks for your advice, I very much appreciate it