Estate sign off and distribution

[des8]

Re: Estate sign off and distribution

First you apply to the court that she produces an inventory and accounts for her actions

Applying to the court for an order would, in the uk, probably set a precedent. The earlier comment I made I have just realised was following a Canadian court decision (sorry)
It would have to be in the High Court and cost

However, remember that probate was only granted back in February (I've just flipped back through the thread!) and, although your father passed away 8 years ago, the executor normally has upto 12 months after probate is granted before action is taken against them.
So although you are feeling frusrated, you might find it difficult processing this.

[crustypants]

Re: Estate sign off and distribution

HI, an update to this is that the estate still hasn't been settled. In the will there is a £6000 inheritance due to my son to be put in trust until he is 21. The executrix solicitor told me that under section 32 of the trustee act 1925, I can take upto half of it for immediate use to benefit my son. I have notified the executrix that is my intention and now she has come back saying that before doing releasing any funds her solicitor has suggested having an indemnity letter in place, and she's not budging. Is this something she is supposed to get drawn up or is it for me to get drawn up? if its down to me, can I write one myself (obviously signed by me) or do I have to get one drawn up by a solicitor? I must admit, id never even heard of one before!

Thanks in advance for any help or advice I'm given

[des8]

Re: Estate sign off and distribution

On the basis of your previous posts if you do it yourself the chances are the executrix (and her solicitor) will find fault with it!

I would suggest having it drawn up by a solcitor, even hers.

[crustypants]

Re: Estate sign off and distribution

Many thanks again Des8. what I thought was a really basic and simple will and estate, she is managing to turn into epic proportions. Am I right in thinking an indemnity letter is purely to absolve her of any liability or wrong doing in the case of any mismanagement of the advanced money?

Kind regards

[des8]

Re: Estate sign off and distribution

It is to cover her against claims that your son might bring against her in relation to releasing part of his legacy before he gains control of it himself.

I understand that your son inherits £6000 when he reaches 21.
In the meantime the trustee can use the money for his benefit.
In this case you want them to release 50% of it to you so you can use it for his benefit.
Obviously this means it goes out of the trustee's control, and a solicitor would be failing in their duty if they did not point out to the trustee the danger inherent in this course of action.
If you should use the money for any other purpose than the benefit of your son........
I am not suggesting for one minute that you would use the money other than for the benefit of your son, but a solicitor will always look at that risk.
Perhaps the solicitor should also advise the trustee to effect a Trustee and Management Liability Policy

[crustypants]

Re: Estate sign off and distribution

The will actually specifies that the 6000 inheritance is placed in trust until he is 21 by his parents. So once the money is distributed, it is our decision where it goes, that sort of takes her out of the equation anyway surely.
randomly, it was her solicitor who suggested to her to offer this option of advancing half to us. Maybe he sees it as a way of earning more reddies.

[des8]

Re: Estate sign off and distribution

If the will stipulates you, the parents are to set up the trust, I'm at a loss to understand why she needs a letter of indemnity.

I'm tagging another beagle Peridot, a solicitor who hopefully can throw a light on this
[MENTION=85500]Peridot[/MENTION]

[crustypants]

Re: Estate sign off and distribution

me too Des8, too be honest, I've been baffled by a lot of her stipulations of me, but I've tried to toe the line all the way along to speed up the process. at some point though I've got to stop and ask myself why does she keep delaying delaying delaying. as mentioned before, it is a really really simple will. it was just reall badly worded by her.

[des8]

Re: Estate sign off and distribution

Peridot is not on at the moment, but hopefully she will be able to assist.

[Peridot]

Re: Estate sign off and distribution

Hi,
Sorry for the delay, I hadn't realised I'd been tagged.
A parental indemnity would be the usual way to deal with paying an inheritance for a child to their parents. The parents would then be responsible for the legacy and it's investment until the appropriate age they should receive the inheritance. If the parents spent it or didn't invest it sensibly then the child could sue them. Without a parental indemnity the executor would be liable.
However, in this situation it is very dependant on the wording of the Will. More recent wills incorporate a lot of clauses often referred to as the STEP provisions. If the 2nd edition STEP provisions are used then there would be a clause dealing with execs accepting a parental indemnity (unless it states specifically that this clause is not included in the Will). However if the 2nd edition STEP provisions are not included you need to consider the wording of the Will and refer to the Trustees Act for what can be done by the trustee (in this instance the executor becomes the trustee unless someone else is named).
It is a very common occurrence to obtain a parental indemnity and I wouldn't assume there is anything underhand going on with regard to this.

[crustypants]

Re: Estate sign off and distribution

Hi Peridot, thanks for reply. The will is worded very poorly and as such that has caused the nearly nine year delay. The exact wording is ----
"A trust set up for my grandson #### in the sum of £6,000 to be allocated by his parents at the age of 21"
The executrix's solicitor has also advised her that "It appears to me that it has been expressly provided for that somebody else, The parents, can look after the money for #### until he gets to 21 providing they give a valid receipt". The executrix put it in writing to me as the advice shed been given.
We had also been offered from the outset a chance under "section 32 of the trustee act 1925" to receive half now for his benefit. she is insisting I give an indemnity for that also. My brothers daughter also has exactly the same inheritance due but the executrix has stipulated to them he only has to give a valid receipt. All through this the executrix has been inconsistent and I'm not entirely convinced she knows exactly what she's doing. There are no clauses and it wasn't professionally drawn up. It was done 2 days before my dad passed away by the executrix.
Surely if the will says the trust is to be allocated by the parents then the executrix couldn't be held liable without an indemnity as she is only distributing according to the will?
I really appreciate any help given on here

[crustypants]

Re: Estate sign off and distribution

Just as an aside, she has recently just asked me how I could guarantee that he wont get his money until he turns 21. I replied that I don't think I could give a cast iron guarantee because I was sure that there was a way he could terminate his trust himself at 18 and it wouldn't be prudent of me to offer guarantees if that were the case. I may be wrong obviously.

[Peridot]

Re: Estate sign off and distribution

Hi,
You don't need to guarantee to her that your son won't get the money before 21yrs. The point of a parental indemnity is that if you don't look after the money and invest wisely (or at least take advice and follow that advice on investing) then your son could sue you for the legacy and interest.
I would not accept the half payment unless there is a good reason to do so, just wait for the full £6k. It appears to be getting all sides a bit anxious so why bother muddying things accepting half payments. I think you may be analysing too much trying to second guess matters. There appears to be some confusion over the accounts sign off, for which there has been sensible advice from other posters.
Maybe take a breath, sign the interim accounts and hopefully matters will conclude shortly. The executor is clearly getting anxious herself but seems to be seeking solicitors advice when she is unsure, maybe a bit of breathing room is needed? Appreciate it has been a long time getting to the grant of probate but you're there now and the executor seems to be trying to finalise matters. Hopefully things will plod toward conclusion soon.

[crustypants]

Re: Estate sign off and distribution

Many thanks again peridot. I did return the interim accounts at the end of September 2016, but as I mentioned a little earlier in this thread, everytime I return something that she demands, she then demands something else. It's like a never ending circle. It really is a simple distribution. Four beneficiaries-2grandchildren and me and my brother as residual beneficiarys. And then four check's to charities.
The estate has been collected in since March 16 and the probate was issued February 16.
No she is not seeking her solicitors advice anymore. She told me that when I asked if the legal bill to the estate was still going up everytime she asked for advice.
Can I ask, does the wording that I provided you with correctly entitle my sons money to come to us to place in trust?
And is it normal for an executor to give different requirements for allowing distribution for exactly the same thing (both grandchildrens trusts)
many thanks.

[Peridot]

Re: Estate sign off and distribution

Hi,
It isn't the usual wording but it is clear that the funds can be held by the parents. You will be holding the money on trust for your son. I suspect as she is not communicating with your brother she maybe thinks she is doing you a favour offering half now as to opposed to treating you both the same but is isn't anything novel. It may be that she has become fixated with the 'executors year' (from probate grant).
Maybe take a step back if you can and if things don't move toward completion in the next month, seek some advice yourself as to how you can force her hand to finalise matters. The problem with forcing matters is that invariably stretches things out even further. It does appear that over the last year things have been moving forward.