Estate Accounts Sign Off

[Mercury45]

Hello,
After 1 year of my mom passing away and lots of issues, I have been informed the Draught Estate Accounts are ready to be signed off by the Executor.
I am 1 of 3 Residue Beneficiaries, Estate value about £130,000 to be shared. After a long due dilligence process my Brother has been informed he will be having deduction of between £4000-£5000 from his share. My mom lived with him for the last 6 months of her life, so not quite surely what financially went on.
he has said he will put “ a process in place to prevent sign off” Surely they would not be making a deduction if they thought it was not correct?
Can he prevent sign off by Executor?
If he refuses to sign and the other 2 beneficiaries do, can this stop distribution?
Thank you

[Amethyst]

Are any of the 3 beneficiaries the executor? Is the £4k-£5k being deducted from your brothers share being redistributed to the other two beneficiaries or is it a costs thing? ( just wondering if the other two beneficiaries have a choice in the matter of the deduction or not )

Tagging Peridot to check in once you've answered above xxxx

[Mercury45]

Hello,
None if the 3 are Executors, only 1 Executor who has dealt with through Solicitors.
No indication as to how the deduction will be split or used, is that upto the Executor ? Do we have any say in how it is used?
I suppose will not know until Accounts are received.
Thank you

[Amethyst]

Nope, you'll need to go through those. It sounds like your brother may have had money off your mum while she lived with him that he hasn't be able to account for so could be being deemed as early inheritance etc ( maybe your Mum lent / gave him some money to buy a car or some such as a thanks for having her living with him (I'm an optimist lol )) I'm sure the three of you can work it out ( variation or even just agreement between you all to gift part each ) as if things end up being challenged it could easily eat up that £4-5k so everyone ends up losing out. It's not my area though so wait for Peridot to look in - although I think you'll need the accounts and to know a bit more why his share is being reduced by the executor first xxx

[Mercury45]

Hi, Thank you
Im little confused.
if he did have money from my mom, I’m not concerned as he did look after her for 6 months which I could not of done and she loved it there anyway, she probably did give him something but was never discussed.

So do all 3 Beneficiaries have to sign the final Accounts before distribution?
If he doesn’t sign and the other 2 do what happens, we remain in Limbo for eternity?
Can he challenge the reason for deduction?
If he challenges who pays for this, the Estate?
They must have a strong argument for doing so?
its been a nightmare from start to finish with the Executor, costs to Solicitor already over £10,000 for estate worth only £130,000, just want this to end.
Can he stop Accounts being drawn up and sent out, or does he have to wait until they are sent to us.
we are not in communication with the other beneficiary so unable to discuss, families!
Thank you

[Amethyst]

I've asked Peridot to pop in for you xxx As a residuary beneficiary ( the estate is being split between the 3 of you after everything else is paid ) you are entitled to see the accounts, but I'm not sure whether you are entitled to see them before or after sign off. Has your brother been given reason for the deduction as far as you know ?

[Mercury45]

Hi, Thank you
Only told me that through all the due dilligence they have done, going through my moms bank account etc.. which I have not been able to see, my brother has not shared them with me either( does make you suspicious) that they will be making a deduction on previous questions they have asked him, no specifics as yet. Lot of questions and scrutiny has happened which is why it has taken so long.
I only come back to they must have sound reason to deduct money?

[Peridot]

Hi Mercury45,

As a residuary beneficiary you are entitled to see the estate accounts. However it is only recommended good practice that suggests residuary beneficiaries should 'ok' them in addition to the executor. The executor can still distribute even if all beneficiaries don't approve the accounts although with solicitors acting they may not be happy to proceed until they are approved by all of you.

I would want to see them and actually find out why the sum has been deducted from your brother's share. As you say there must be a good reason for them to do this. Once you have received the draft estate accounts lets see what the £4-5k is in relation to. It may be that once your brother has seen them he accepts the reason? It may also be there are cross wires and the £4-5k is being deducted from the estate as a whole so all the residues reduce.

I wonder whether money has been moved from mum's account after she had died,, or whether your brother had some personal items that were valued around that figure which would then be fair to reduce his amount by the value of the items? There is probably a perfectly valid reason why this decision has been taken but you need to know what it is. I can understand your brother getting irate if he has not had the reason explained and hopefully all will come clear and calm things down.

Just an aside would you and the other residuary beneficiary be amenable to passing an amount to your brother, once the distributions have happened to even things out so all of you receive equal shares. This of course would be an arrangement between the residuary beneficiaries outside dealing with the estate and not part of negotiating the distributions and finalising the estate. Just trying to think of alternatives to try and calm your brother down to at least get things moving for you all.

Wait to see the accounts and if no explanation has been given as to why your brother's legacy has been reduced then you need to ask the question.

[Mercury45]

Thank you Peridot.
who decides where the £4-£5 k goes, the Executor?
what is a draft proposal? When does the final account get signed off?
yes I would be willing to give some of my share to him but not the other beneficiary.
What actions can he take if he wants to challenge the Accounts? Is he likely
to win, as I’m sure they don’t do these things lightly?
will he have to pay himself if he challenges?
will it be clear in the Accounts as to why they have deducted monies?
not aware of any money being moved after her death but money was transferred 2 days before she passed away that was used to pay for her funeral etc...
no personal items worth any where near that amount.
sorry, back to original question, can he stop draft accounts being sent out?

thank you

[Peridot]

Hi again,
You need to slow down. You don't even know the reason for the deduction of his share. Once you have established that (hopefully it will be indicated in the accounts or in a covering letter when you receive them) then you can decide whether it is fair, a misunderstanding or something that needs correcting.

The preparation of the draft accounts is ongoing, what would be the point in preventing them sending you a copy of the draft? How could he prevent them sending him something in the post. I was under the impression he was refusing to sign them off as approved which of course he can do but until he knows why there is nothing to argue at the moment. You need to see the draft accounts to see what is going on and no he can't prevent the solicitors sending them to him.

If the £4-5k is in respect of other bills then that would be demonstrated in the accounts. If it is purely a deduction from his share for something he has received previously then the £4-5k would be divided between the remaining residuary beneficiaries.

Once approved the accounts are final.

Once you have all seen the draft accounts any challenge at this point would just be asking the question why has his share been reduced. As I say there must be an apparently good reason. Did he receive money for the funeral expenses for example when you have indicated the amount was paid from your mother's account?

This is all speculation at the moment you can do nothing until you have seen the draft accounts and asked for the reasons for the reduction of your brother's share. Wait to get the accounts and pop back if it is not clear why and the solicitor's have not provided an acceptable reason.