Inheritance repayment request after 5 years

[brummydot]

Hi, I hope someone can help. Some very close friends had a tragic accident 10 years ago and they kindly included me in their will. I received two amounts of money, the last being just over 5 years ago. I have now received a letter from a solicitor that is apparently representing the executors advising me not to spend any of the money as it may need to be paid back. I am distraught by the fact that it has been over 5 years ago and as you can imagine I am in complete shock.
I understand that mistakes can happen and have read other posts relating to this but none that go back 5 years. Can anyone help or give me advice.
The letter received says that they are unable to give any further details at present but hope to do so in 3 to 6 months. This is terrible and upsetting as the money has been used to pay some of our mortgage.

[Kati]

Re: Inheritance repayment request after 5 years

to LB [MENTION=91215]brummydot[/MENTION] ... I'll tag @des8 for you (he might be able to advise ) xx

[des8]

Re: Inheritance repayment request after 5 years

Hi an welcome.
A very unpleasant surprise.

I think (but open to correction as always) that the Statute of limitations would come into play in these circumstances and the time limt would be 6 years.

Without knowing the basis of the possible claim, it is ifficult to comment.
However executors are personally liable to the extent of all the assets which have passed through their hands during the course of the administration.
This means that if they have paid out all the estate and there is a subsequent claim against it they are personally liable to meet that claim unless they have taken steps to protect themselves.
If an executor has paid over the assets voluntarily (ie without a court order telling him to) the presumption is that he has sufficient assets to pay all legacies.
Executors only have a right to a refund from the beneficiaries in these circumstances if liabilities appear of which they had no previous notice.

However, even if the executor has a right to a refund, that doesn't mean he/she will get it!
If the beneficiary has changed their position (ie disposed of the money so it can't be regained) the executor will be out of luck.
Normally, paying off a debt or mortgage is not considered a change of position, as it is assumed one can take out another loan, or obtain a mortgage.
This of course is not necessarily always so, as it depends on the age and financial position of the beneficiary.

Were the original executor(s) solicitors/bank or lay persons?
If they were lay persons did they effect an Executors Liability Policy?
Was your legacy a specific amount or were you a residuary beneficiary of the estate?

At this stage I would not worry overmuch, as you don't know enough of the circumstances giving rise to this warning.

[brummydot]

Re: Inheritance repayment request after 5 years

Thank you for a very quick response.
I believe one of the executors was a solicitor but the other was a friend of the deceased. I know I will have to wait until I receive further details from the solicitor I received the letter from and will see where we go from there. Thank you.

[des8]

Re: Inheritance repayment request after 5 years

If the original executor was a solicitor, or employed a solicitor, they should have protected themselves from unforeseen claims by posting a section 27 notice.
If they did this, it would be a creditor who would be following the legacy, as there would be no claim against the executor.
Also the solicitor is almost bound to be covered by a liability policy covering him in the event of errors!