Can Executors in Scotland demand beneficiaries to sign off before distribution?

[gotdone]

Hello All,
In Scotland can the executor of a will demand that the beneficiaries "sign off" protecting the executor from any future claims ? and if a beneficiary refuses, can the executor refuse to handover the inheritance as directed in the terms of the will to a named beneficiary who refuses?
There are 4 children listed as beneficiaries, the immovable assets ( the house) has been left to my sister with the remaining estate (movable assets) to be divided up equally between the remaining 3 brothers. The Will also states that the beneficiaries are to receive their inheritance free of taxes ( death duties/taxes to be paid prior to distribution by the brother and solicitor acting as co-executors for the estate. When the Will was written the value of the house was thought to be approximately the same as a one third share of the movable assets (shares/cash)
Thanks to the GFC the situation now is that the house is likely to be worth double a one third share, but hey, thats life!
I know that the entire estate is combined (movable and immovable) and 40% death duties applies on everything over 325,000. My question is, how does the government apply these taxes? Is it the case that they grab the 40% from the movable assets (just because its easy!)
leaving my sister to walk away with the house and in effect having paid no tax.

[des8]

Re: Can Executors in Scotland demand beneficiaries to sign off before distribution?

Hi and welcome
I believe that where a substantial part of an estate is made up by the value of property which the beneficiaries wish to retain, HMRC allow for IHT on that portion to be paid in instalments over a 10 year period.
Interest is charged.
Probate (in England/Wales anyway) won't be granted until HMRC indicate that arrangements are in place.

Suggest you discuss the matter with the executor and your siblings in an attempt to reach an amicable and fair resolution bearing in mind the testators wishes as well as the strict wording of the will.

Nothing like a legacy to rip a family apart

[gotdone]

Re: Can Executors in Scotland demand beneficiaries to sign off before distribution?

Hello,
thankyou for taking the time des8, I was informed by brother 3 (youngest and executor) by email that my mother had died suddenly in hospital, I was told brother 3 and sister had wheeled my 81 year old mother into a solicitor's office 3 years ago where she changed her Will of over 40 years from equal 25% each to the situation I described, didn't disclose to the solicitor her 40 year serious mental health history (Schizophrenia hearing voices etc etc). There was no disclosure to me concerning the change of the Will. Has refused to respond to any communication, solicitor forwarded extract from the Will by email to me but has not responded to any communication since. Brother 1 (oldest) last known address halfway hostel Brighton Sussex 2003 been untraceable by me since, wouldn't have any knowledge of any of our forwarding addresses so negotiation would appear to be not an option. I myself now live in Western Australia so it is very difficult to get any information regarding this sorry state of affairs. One of my letters not responded to was to ask the Solicitor not to file without all reasonable steps being taken to try and trace him, I would like to try to ensure he is not ripped off any worse than he already has been. Brother 3 it turns out moved in with my mother and sister in Scotland and has been unemployed ever since.

With regards the Will itself relating to taxation all it says is

"Unless otherwise specified any legacy granted by any writing shall be paid or made over as soon as my Executors consider practicable after my death free of government duties in respect of my death and of delivery expenses but without interest"

I have the full expectation they will not respond I will simply get notice at the point of distribution along with, no doubt, some disclaimer to sign off on. Hence the reason for my initial questions.

Yes, you are right judging by these boards nothing like an inheritance to bring out the very worst in people.

[des8]

Re: Can Executors in Scotland demand beneficiaries to sign off before distribution?

Sorry to hear of your plight.
Obviously your location "down under" is a bit of a hindrance to sorting this matter.

As your mother was mentally ill it is possible she did not have capacity to draw up a new will.
From the little you have hinted at, it is also possible that undue influence was brought to bear on her to induce her to change her will.

With this you could possibly challenge the validity of the will, and have the earlier testament reinstated (if the original is still in existence)

I think your first immediate step is to consult a Scottish disputed wills solicitor specializing in contentious litigation.
Make sure the solicitor you engage will see the matter through to court and not hand over to a litigation specialist
This can be extremely expensive, so you will have to balance possible costs against possible gains.

I believe that in Scotland it is difficult to disinherit children and there are rules regarding the division of the estate.
For this reason alone IMO you should consult a professional
The Law Society of Scotland can provide contact details for solicitors (www.lawscot.org.uk)