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Distribution of funds to beneficiaries

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  • Distribution of funds to beneficiaries

    Sorry if this is the wrong place but need a little bit of help.

    My dads cousin passed away in December 14 and named my dad, aunt and uncle as beneficiaries. A solicitor is handling the estate. At the moment the DWP are checking to see if he owed any pension credit, which we think he might. We have heard that this could take a while.
    The estate totals around £140,000 (my parents used to help with the accounts of the cousin so we know the rough figure)
    My father who is 76 has a growth on his liver which could be cancerous. His health is a concern. He is hoping that due to his share he will be able to buy a new car (he has all his faculties and doesn't act like a 76 year old)
    The solicitor says she cannot release the funds until the DWP has been paid back, although we know that the amount will be less than £10,000. Is there any way my parents and the other 2 beneficiaries can get the funds released and sign a contract/indemnity agreement etc stating that they are taking over the estate and will be liable for all claims (if any) and the solicitor can be released as executor. It seems wrong that they cannot release the money when it is a fraction of the estate that will be owed and they are a close family and all agree to the proposal. My dads cousin would be upset to think that they were unable to enjoy the money that he wanted them to have and we would like my dad to get the car before his health stops him from driving.
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  • #2
    Re: Distribution of funds to beneficiaries

    The answer is no Any solicitor who distributes the estate before the DWP have completed their checks AND if probate is being sorted that comes 1st. If the solicitor doesn't follow this criteria then he/she risks being liable for those monies. Thought have you considered the Motabilty Scheme, assuming he qualifies of course

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    • #3
      Re: Distribution of funds to beneficiaries

      He doesn't qualify for motability, they have some savings but this windfall would buy a new car without the need to touch the savings. The probate is through but DWP are just being so slow! My parents are quite willing to get a binding contract that releases the solicitor from any approaches from DWP, they have no problem paying the amount, if any that the DWP asks for as the estate is so large it just means that they have some capital to spend. We thought there might be some contract in law that the solicitor could draw up moving all the onuses onto the beneficiaries to make them liable for any debt.

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      • #4
        Re: Distribution of funds to beneficiaries

        There is no reason why the solicitor cannot make interim payments to beneficiaries, except they are scared of their own shadows.
        Presumably your father is not looking to buy a supercar, so with an estate of the size you suggest the solicitor is being super cautious and should be able to release a small amount to him without endangering his own purse.
        As executor it is the solicitors decision and you cannot appeal to higher authority.
        Go back and try again.

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