Executor won't authorise any payments

[dunkertruck]

Hi all,

My Grandad died in October 2022 and his will was deemed quite simple. He has 2 executors being his daughter (my Auntie) and his niece. There are 6 beneficiaries, my Auntie, my Dad and his 4 grandchildren (which includes myself)

It has taken some time as he did have a considerable amount in his estate but we were told just a few months back that only a Stocks and Shares account was outstanding.

The solicitor got in touch just last week to ask my Auntie if all beneficiaries would like an interim payment just now as the Stocks and Shares part was causing an issue for some reason. We all agreed to take a partial payment of £50,000 each.

However, the solicitor got back in touch today to say that the other executor, my Grandad's niece, was refusing to authorise this.

Is this legally ok? There is no reason for her to hold any payments back as she isn't a beneficiary, and we know only 1 of his accounts is outstanding.

The 'Executor's Year' has passed and so we see this delay as highly unnecessary. Would we be within our rights to speak to a Solicitor about removing her of her role? My grandad made her an executor so that there would be no issues. She has also instructed the solicitor dealing with it all to not speak to any of us beneficiaries when we phone or email asking for an update. I don't think she can legally do this either.

Any advice most welcome before we take further action.

[Pezza54]

Although there is no set time for an executor to settle an estate, 9-12 months is a reasonable amount of time unless the estate is exceptionally large and/or complex.
Inheritance tax has to be paid within 6 months of the deceased's date of death so the value of your grandad's stocks and shares should have been calculated 9 months ago. Selling shares is quick as the price of shares can rise and fall rapidly. If the price of the shares have risen or fallen since the date of death and there is a delay in selling them beneficiaries may gain or lose out financially. If the value of the shares have fallen significantly and there is no valid reason why the executor did not sell them as soon as possible, the beneficiaries may have a claim against the executor.
Executors have a duty to keep beneficiaries informed about the administration of the estate and answer their appropriate questions.
It seems to me the solicitor was being fair when he or she offered a partial payment which all the beneficiaries agreed to.
You should contact the other beneficiaries about seeking a solicitor's advice. A single letter from a solicitor warning of legal action against the executor will hopefully change the niece's decision to withhold partial payment.

[dunkertruck]

Hi and thanks for the swift reply. We received further info yesterday and that is basically the Niece doesn't think Solicitor is doing his job properly. This is why she is holding out on approving interim payments. Not quite sure what she means by this but we have since asked for an update as to why as well as a statement of accounts regarding the estate, etc.

In regards to us beneficiaries contacting the Solicitor for updates she has expressly refused to approve this. I was under the impression we, as residual beneficiaries, were completely entitled to contact the Solicitor to ask for an update? I may be wrong however.

[atticus]

Have you contacted this executor to try to get to the bottom of the problem?

[dunkertruck]

Yes, our Auntie has been in touch and she is refusing interim payments due to what she believes has been poor updates by the Solicitor.

She has written to him to state she wants nobody dealing with him other than herself and my Aunt (both executors) even if one of us was just phoning him for an update to the progress. I think this is wrong but legally she may be correct... ethically, well.

She has also refused to making interim payments as she has asked for confirmation there is enough money left over to ensure all debts have been paid, ongoing bills and expenses covered until settlement. She is also asking him to confirm 'statutory notices' have been applied for (no idea what this is) and that all bankruptcy searches of beneficiaries have been returned as clear? (again, no idea what that is)

I feel she almost has a personal vendetta with the Solicitor for some reason but to the detriment of the beneficiaries who just want this saga over.

[atticus]

Without knowing more, her questions seem appropriate. Bear in mind that if there is an error the executors may be personally liable.

Statutory notices are a means of putting a time limit on claims against the estate, and following that process protects executors from liability.

[Pezza54]

Your niece is probably worried about additional solicitor fees if the solicitor replies to all the beneficiaries letters. The solicitor fees are going to be deducted from the estate. Your niece, and your aunt (unless she gave up her role as executor) have a duty to ensure the solicitor acts efficiently and if necessary consider terminating the solicitor's service contract.

[dunkertruck]

Are you able to answer on the matter of whether I, as a beneficiary, can contact the Solicitor (Administrator) to ask for an update on the progress?

My understanding is he has been 'employed' by the 2 executors to carry out the process and as such we can contact him as Administrator?

[dunkertruck]

Your niece is probably worried about additional solicitor fees if the solicitor replies to all the beneficiaries letters. The solicitor fees are going to be deducted from the estate. Your niece, and your aunt (unless she gave up her role as executor) have a duty to ensure the solicitor acts efficiently and if necessary consider terminating the solicitor's service contract.

We get the feeling she is clearly holding him to task. However, we all feel it is a very simple will. No property to sell, 6 beneficiaries clearly named and all his accounts were logged with the solicitor before his death and so there is no 'hidden' money anywhere.

Statutory notices seems overkill considering this, and also I have just found out not even a legal requirement.

It would seem we just have to keep playing the waiting game.

[atticus]

No doubt you can explain to your niece why she should take the risk of personal liability.

[dunkertruck]

She's not my niece, she's my Grandad's niece. My Grandad was a Forensic Accountant for a large shipping company most of his life, I very much doubt he would've exposed anyone in the family to any personal liability. At the very least she could be offering an interim payment of half of the due money or some other conciliatory gesture rather than trying to create ill-feeling and bitterness. These things tend to draw that out of people right enough.

[Pezza54]

You stated your grandad's estate is worth a considerable amount.
If there is a delay in distributing assets after probate (which there appears to be in your case), the executors have a duty to invest money at the best possible interest rate for the benefit of the heirs.
When you get to view the statements of account check that interest has been added.

[atticus]

Are you able to answer on the matter of whether I, as a beneficiary, can contact the Solicitor (Administrator) to ask for an update on the progress?

My understanding is he has been 'employed' by the 2 executors to carry out the process and as such we can contact him as Administrator?

Sorry, I missed this. By all means seek that information. I suggest that you do this in writing, by letter or email.

[Pezza54]

Sorry, my mistake. Should have wrote "his niece" not "your niece".

[dunkertruck]

Thank you for your answers, very much appreciated!