when is Estate winding-up finalised

[scriptwriter]

As executor and chief benefic of Will, probate granted end March. Solicitor said can now pay small legacy to close relative, who is not happy with amount left - they were sent a cheque, which they have not acknowledged or cashed, as they have asked me for more, which I have verbally agreed to. Solicitor advised me against this, and said they should get their solicitor to contact him to negotiate, but I do want to give more. Relative now pressing me to agree sum now, and said I should know what's left in Estate, but I have heard that I have to wait 6 months before I can be certain there are no further claims on Estate. If OK to pay beneficiary now, does this mean Inland Revenue have finished with the Estate (not in IHT bracket anyway), or do they do whatever it is they do after the Estate is actually wound up? (ie at the end of, or after, the 6 month period).

I want to pay relative sooner rather than later, and relative can't see the point of going through solicitors when we have agreed between us. Is solicitor just after dragging this out and getting more legal fees? I wont commit to relative exactly how much extra I will pay yet, but am now worried if it is not what they were expecting they will contest the Will (as they have hinted at). The Will is perfectly legal, but relative (close relative) was shocked and upset at amount left and I do want to give them more. But does this still leave them the rest of the 6 months to try and get more if they are still not happy?

Solicitor is so vague to me about when everyone has finished looking at Estate, so it will just cost me more for him to be vague again - hence this question on this site.

any suggestions?

[Buenchico]

>>>"they have asked me for more, which I have verbally agreed to"<<<
AAAGH!!! No! No! No! A thousand times no! (Er, except as stated below, of course!).

As executor of the will, the law obliges you to pay out exactly what the will states, not a penny more nor a penny less. Any other action is ILLEGAL!

However, of course, you're free to give your OWN money (including what you're due to receive from the will) to whoever you want to. If, by giving more money to the 'awkward relative' than the will states, you're simply depriving yourself (and no other beneficiaries) of what you might receive, that's entirely up to you.

>>>"Solicitor advised me against this . . ."<<<
Well, at least the solicitor seems to be earning a bit of his/her money anyway!

but
>>>" . . .and said they should get their solicitor to contact him to negotiate"<<<
Just how badly was the will drawn up? A will normally leaves either a specific legacy (e.g. "£1000") or a specified fraction of the residual estate (e.g. "five per cent") to a beneficiary. Either way, simple mathematics should dictate the sum to be paid, not negotiations between solicitors!

Read the will again. Then read it once more. If you're absolutely convinced that you've assessed the correct sum to pay to the awkward relative, pay that exact amount (to the penny). Unless you're expecting that someone will suddenly prove that the deceased person owed them thousands of pounds, you can probably ignore the 6 month period referred to in your post. It certainly has no bearing upon any potential claim from any beneficiaries of the will.

Chris

[brenda]

scriptwriter-------Chris has answered your query in a totally correct way. Please do not get involved in paying this relative money at this point.You must as Executor follow the terms of the will exactly .
When all is settled with the will and the beneficiaries have all received what is due to them under the terms of the will you can do as you wish with your own money.
If a beneficiary does not accept the money due to them from the will and does not cash the cheque -- that is their problem not yours.
Your bit as executor has been done..
Let the relative sort out his problem , not you.Do not be threatened by a suggestion that the will be contested -- let them go ahead if they wish and leave things in the hands of your solicitor -- do not get involved please.
Contesting a will is expensive , and unless the money involved overall is a huge, huge amount , is not worth pursuing as your relative find out.
Best of luck.

[dzug2]

Was the close relative financially dependent on the deceased? That could (and only could) make a difference.

Waiting 6 months is not a legal requirement - but if you don't then you as executor are personally responsible for any debts that may emerge, and must retrieve them as best you can from the beneficiaries you have paid out to

[scriptwriter]

Buenchico, Brenda, dzug2 - thanks guys for your excellent answers - I am now a lot clearer and Buenchico thanks for making me laugh as well. Relative not dependant on deceased - though they claim they were depending on the money coming to them - but that's a different matter. Solicitor did advise me that they have up to 6 months to contest will from date of Probate.

Does anyone know what next stage is once relative is paid out? (the only other benefic apart from myself). I'm not sure what the last stage of Estate being 'wound up' is - presume all authorities finished with it, but not sure.

Cheers.

[Buenchico]

Thanks for the reply.

Prepare a Statement of Accounts, showing where all of the money you've dealt with has come from and been paid to. Send 'grumpy relative' two copies, asking him to sign one and to return it to you.

Keep all relevant documents in a safe place for 12 years.

Job finished.

Chris

PS: The chances of Mr Grumpy getting anywhere by attempting to dispute the provisions of the will in court would seem to be nil but, if you want to read the relevant legislation, see here:
http://www.legislation.gov.uk/ukpga/1975/63

[mark01]

Hi Scripwriter - are you the sole beneficiary under the will, are most of the assets of the estate realised, bank accounts, building societies, etc. Is there any realty to dispose of (property to sell). All assets and liabilities would have been declared prior to obtaining probate and IR would have told you if any IHT was payable, before probate was granted.

Was your relative given a pecuniary (cash) legacy or was it a part share of the residue as Buenchico has asked.

It is difficult when someone very close to you has recently passed away. I have been in the same position as you when my parents died and I tried to do the 'right thing' for some of their friends who had 'lost out'. Emotionally I felt drained at the time, but felt relieved after making some difficult desicions. Best of luck to you.

regards, Mark

[scriptwriter]

Hi Mark01,
I'm chief beneficiary and the relative is pecuniary legacy, so cheque has been sent for that amount. Estate was pretty straightforward, as deceased parent had been in nursing home for few years and I was the only one of the children who looked after them (and made arrangements etc - no help offered) Didn't realise how much there was to Probate and everything or how stressful it can be though - even though straightforward, but glad now I got a solicitor to deal with it. But I don't feel I've had time to grieve properly - still feeling a bit fragile.

[mark01]

Yes, it is difficult in dealing with these issues following the death of a close relative.

Please take your time whatever decision you make with your relative - try and keep a clear head.

As your relative is not the main beneficiary (only a legatee) he/she is not entitled to receive a copy of the estate accounts. A copy of the probated will is available for anyone who wants it (at a small cost) and obviously the gross and net value of the estate will be shown.

regards, Mark