Distribution of Monies after Grant of Probate

[terminal7]

I am the sole executor of my recently deceased mother. The will distributes her assets between myself and my son. Probate has just been granted - no IHT as under limit. I am now gathering the liquid assets from the relevant financial institutions. The main asset is her flat that had been sold to pay for upcoming care home fees (under a LPA held by myself) but had to be 'frozen' as she died just before contracts would have been exchanged. I suspect that the flat sale will still take 1/2 months before completion.

Can I distribute the monies received from the financial institutions - to my son and myself - as and when received and subsequently distribute the flat sale proceeds in due course? Or do I have to wait until all assets have been liquefied before the distribution takes place? If the former, do I have to distribute monies every time as per the indicated shares in the will or can I front load to my son as long as the final distribution is as per the indicated shares?

T7

[uspaul666]

I’m pretty sure you can distribute as and when you see fit as long as, in the end, it complies with the requirements of the will. Just make sure you keep scrupulous records and make sure you don’t distribute money the estate doesn’t have (or forget some final bill). Don’t be bullied or morally blackmailed into rushing distributions unless you’re very sure it can be covered.

[Lootman]

I’m pretty sure you can distribute as and when you see fit as long as, in the end, it complies with the requirements of the will. Just make sure you keep scrupulous records and make sure you don’t distribute money the estate doesn’t have (or forget some final bill).

Yes, and in fact an executor can distribute funds before probate is granted, as long as they have the funds and are willing to take personal responsibility for the transfer.

When I was in this position I paid off all the deceased's bills, and the funeral, before probate was granted. it made the probate process easier not having to include those.

[Raptor]

I’m pretty sure you can distribute as and when you see fit as long as, in the end, it complies with the requirements of the will. Just make sure you keep scrupulous records and make sure you don’t distribute money the estate doesn’t have (or forget some final bill).

Yes, and in fact an executor can distribute funds before probate is granted, as long as they have the funds and are willing to take personal responsibility for the transfer.

When I was in this position I paid off all the deceased's bills, and the funeral, before probate was granted. it made the probate process easier not having to include those.

I did the same as Lootman. When I got the "grant of probate" I transferred the deceased Share portfolio to me and locked in the "value" as of that date. Once we had sorted out all the other "sales of assets", I paid off the rest of the bills that I had not already taken care of and did a "final" breakdown of the total assets and paid out the relevant.

Mind you 3 years on I have just divided the final "sum" (refund of overpaid LPOA).

Rapor.

[richfool]

I did the same as Lootman. When I got the "grant of probate" I transferred the deceased Share portfolio to me and locked in the "value" as of that date. Once we had sorted out all the other "sales of assets", I paid off the rest of the bills that I had not already taken care of and did a "final" breakdown of the total assets and paid out the relevant.

Raptor, may I ask, was the share portfolio a share dealing (nominee) account and if so, were you able to change the ownership of the account as a whole, or did all the holdings need to be sold and then rebought in your name? I presume the same cannot be done with an ISA?

I am (also) pondering a situation where some beneficiaries under the Will may wish to continue holding their share of the investments and where some will want to take the cash.

[Raptor]

I did the same as Lootman. When I got the "grant of probate" I transferred the deceased Share portfolio to me and locked in the "value" as of that date. Once we had sorted out all the other "sales of assets", I paid off the rest of the bills that I had not already taken care of and did a "final" breakdown of the total assets and paid out the relevant.

Raptor, may I ask, was the share portfolio a share dealing (nominee) account and if so, were you able to change the ownership of the account as a whole, or did all the holdings need to be sold and then rebought in your name? I presume the same cannot be done with an ISA?

I am (also) pondering a situation where some beneficiaries under the Will may wish to continue holding their share of the investments and where some will want to take the cash.

It was an S&S ISA with iWeb. All holdings transferred to my iWeb Trading Account (cannot be transferred to another ISA) and it cost just £25.

Raptor.

[PinkDalek]

… Can I distribute the monies received from the financial institutions - to my son and myself - as and when received and subsequently distribute the flat sale proceeds in due course? Or do I have to wait until all assets have been liquefied before the distribution takes place? If the former, do I have to distribute monies every time as per the indicated shares in the will or can I front load to my son as long as the final distribution is as per the indicated shares?

You've had some replies but what does the Will state?

I ask as the one I fairly recently dealt with had a requirement that all distributions (interim or otherwise) had to be recorded by Deed (at some cost of course) during a specified Discretionary Period. The front loading suggested by you would therefore have been formally recorded in such a Deed.

No, you don't have to have realised all assets before interim distributions but you should check the Will and ensure that all other potential liabilities, known or not, are covered.

[PinkDalek]

Raptor, may I ask, was the share portfolio a share dealing (nominee) account and if so, were you able to change the ownership of the account as a whole, or did all the holdings need to be sold and then rebought in your name? I presume the same cannot be done with an ISA?

May I suggest you start a separate Topic on this?

You could then, for instance, discuss this https://www.gov.uk/government/publicati ... upon-death if a spouse or civil partner is involved, without diverting from the OP.

[Lootman]

what does the Will state?

I ask as the one I fairly recently dealt with had a requirement that all distributions (interim or otherwise) had to be recorded by Deed (at some cost of course) during a specified Discretionary Period. The front loading suggested by you would therefore have been formally recorded in such a Deed

The question I would ask myself in that position is "What did the deceased have in mind when he wrote that clause?"

If he was merely trying to ensure that a ledger existed of all monies moving out of the estate then I think that is sound bookkeeping practice anyway, and something that an executor should do in any event to protect himself and ensure that the process is open.

If instead it was because the deceased anticipated fights and squabbles, and wanted an independent audit of the disposals, then that is another matter. But then that might be an argument for choosing an independent executor rather than a relative and/or one of the beneficiaries.

Depending on which, as an Executor I might use my discretion about whether or not to formally comply with that directive, given the cost to the estate and the inconvenience and delay that it causes. But as always an Executor has to watch his or her back.

[PinkDalek]

… what does the Will state?

I ask as the one I fairly recently dealt with had a requirement that all distributions (interim or otherwise) had to be recorded by Deed (at some cost of course) during a specified Discretionary Period. The front loading suggested by you would therefore have been formally recorded in such a Deed.

The question I would ask myself in that position is "What did the deceased have in mind when he wrote that clause?" ...

The clause was drafted by solicitors and although the deceased knew of it and its IHT planning opportunities, would not have given it much thought. It was similar to an inbuilt Deed of Variation which, by its very name, is usually done by Deed.

It was in there to ensure that all the IHT and legal aspects were formally covered on a complicated estate. I resisted the formal Deeds, the records that you mention (mind you not "ledgers", I haven't seen that term for 20 years, nor anything about independent audits etc) being fully supportable and no whiff of any family squabbles, and had drawn up my own Executors' Minutes but the solicitor acting for the Executors is/was very much a belt and braces man and we eventually decided to enter into the Deeds.

The costs for which were effectively split between a number of beneficiaries, so not too much of a burden each and professional indemnity insurance applies to it!

I seem to recall your experience as an Executor was where you were the sole beneficiary of your Mother's Estate. If that were the case, I may not have bothered with the Deed.

[terminal7]

First thank you all for your helpful comments.

The will is actually very simple - just stating that all capital to be distributed between myself (75%) and my son (25%).

T7