Legal transaction fees

[Frustrated!]

Hi there, wondered if anyone can help? My mothers estate is finally being finalised and I have been asked by executor to get a solicitor to work on the final transaction and payment of monies to myself which could cost up to 2000 pounds. Can anyone tell me why this cost exists when all the solicitor handling the will needs to do is transfer the monies to my account? Why do I have to get a separate solicitor? Thanks in advance.

[PallasAthena]

It's up to the Executor to calculate how much is due to be paid to you which isn't difficult. If you were left a fixed amount that's the exceutor has to pay you, If it's a share of the residual estate then presumably the Executor knows what the residual estate is and can easily calculate how much you are due. it's all simple arithmetic, what does the executor want to hire a solicitor for at this late stage in administering the estate?

And as for you having to employ a solicitor just to get paid, that's just ridiculous. Whatever would you need to do that for? As you say, just give him your bank details and he can transfer it. That's what I have done when I've been an executor.

Could the request have anything to do with the Executor not knowing you personally, so not knowing that you are who you say you are, and he wants a solicitor involved to verify your identity? Potentially it's an issue for Executors because if they pay the wrong person and the real beneficiary later appears to claim their legacy the Executor might have to pay it from their own pocket.

Can you confirm who the the executor is? Is it the firm of solicitors you mention who are "handling the will"? If so sounds like a way of getting work for other solicitors, 'jobs for the boys'! It might be the request has something to do with them needing proof of your identity. That's reasonable, but requiring you to prove your ID via another solicitor isn't. Ask why they want you do it. If they say it's about proof of ID offer to visit their offices bringing with you whatever original documents they want to see - passport etc. They can copy them for their file.Job done.

[atticus]

What is this final transaction?

[Frustrated!]

It's up to the Executor to calculate how much is due to be paid to you which isn't difficult. If you were left a fixed amount that's the exceutor has to pay you, If it's a share of the residual estate then presumably the Executor knows what the residual estate is and can easily calculate how much you are due. it's all simple arithmetic, what does the executor want to hire a solicitor for at this late stage in administering the estate?

And as for you having to employ a solicitor just to get paid, that's just ridiculous. Whatever would you need to do that for? As you say, just give him your bank details and he can transfer it. That's what I have done when I've been an executor.

Could the request have anything to do with the Executor not knowing you personally, so not knowing that you are who you say you are, and he wants a solicitor involved to verify your identity? Potentially it's an issue for Executors because if they pay the wrong person and the real beneficiary later appears to claim their legacy the Executor might have to pay it from their own pocket.

Can you confirm who the the executor is? Is it the firm of solicitors you mention who are "handling the will"? If so sounds like a way of getting work for other solicitors, 'jobs for the boys'! It might be the request has something to do with them needing proof of your identity. That's reasonable, but requiring you to prove your ID via another solicitor isn't. Ask why they want you do it. If they say it's about proof of ID offer to visit their offices bringing with you whatever original documents they want to see - passport etc. They can copy them for their file.Job done.

Pallasathena, appreciate your prompt response! A bit of background ; My mother died way back in October 2020 and due to covid the probate was not completed till December 2021. All my mother had left was her flat which was to be split between us 3 children but myself and brother live oversea's and my brother in law is executor. We allowed my sister who lives in UK to rent the flat out whilst she arranges a buy to let mortgage but since then we've had nothing but delays and excuses. This is what he has said see below :

Regarding the flat purchase, the mortgage offer has come through in the last week, the next process is that it goes to the Solicitor where he can prepare our offer to you and Dominic.
I am hoping that this offer can be prepared in the next couple of weeks, the Solicitor will finalise the asset/debt figures of the estate, ie. Current mortgage property value/rental income to point of exchange/residual monies owed to estate from the nursing home (assets) against monies owed by the estate to LB Bromley/Judge & Priestly residual fees/A Wilson 50% Solicitors fee advance payment debt/any Property Service Charge & Ground residual debt (up to exchange date)/any HMRC debt then less the £10k legacy sum left to Becky and Luke. The remaining asset sum of the estate would then be divided by three and that would be the one third offer figure to you and one third offer figure to Dominic.

The good thing about the mortgage we secured is that it means we do not have to find separate monies to clear the LB Bromley debt first to allow the property title to be changed. The mortgage company is happy for part of the mortgage offer monies to be used to pay the estate debt to LB Bromley slightly in advance, time wise, of the property exchange. LB Bromley will not release their land registry charge on the property (the charge is needed to be lifted in order to allow it’s transfer from your Mother’s name to ours). The timed transactions of our mortgage offer to clear the estate debt and payments to you and Dominic will be conducted by Judge & Priestly in a synchronised fashion.
The simplified actions should follow thus…

1. LB Bromley debt is cleared, (from rental income estate assets money transfer, topped up by mortgage offer monies)
2. Registry Charge is lifted after confirmation by LB Bromley,
3. Other estate debts paid, (from mortgage offer monies)
4. Agreed offer payments paid to Dominic & Leonard, from mortgage offer monies
5. Property title is transferred over from Kathleen Mills to Cathy and myself, transaction complete

If you and Dominic agree, I propose we could put in a sum against the estate debt figure to cover everyone’s Solicitors fees to do the transaction. You would have to have a separate Solicitor and this way you would not have to find monies in advance. (ie. For example, Let’s say it is going to cost £2k each, in legal fees, to do the transaction, we agree to put £6k on the estate debt figure which is then paid by the mortgage offer monies but would reduce your 1/3 proportional figure).
Either way, you would still have to pay for your own Solicitors fees.
I would advise perhaps letting Judge & Priestly put forward a couple of suggestions for independent UK based Solicitors for you guys to choose from. (again, if you chose to have one solicitor representing you both that would simplify matters even further)

Then get a ‘set legal fee’ from them to carry out the transaction, any fees going over the agreed amount caused by any one party to be paid separately by the said individual party (ie. If, say, by exhaustive questioning, it forced legal fees to go up over the set figure we all agreed then that person causing that pays for it separately outside of the agreement)

That would seem to be the best way forward, in terms of time zone ease/personal financial constraints/time, on the transaction legal costs

In terms of your actions now…

1. If both of you could let me know, asap, in principal that this transaction legal fee suggestion is acceptable, we can set about asking Judge & Priestly to get some Solicitor suggestions to you and then, once selected, getting those transactions legal figures from the solicitors into place in the asset/debt sum for the final tally up.
2. Also, if you can both let me have your bank account details, that the accepted offer monies would be transferred into, so we have those details all ready in the Solicitors hands.