Executor asking for money back

This

If there should have been taxes paid before the probate was finished, it is fair that that money comes from all the beneficiaries. They should have come out before the money was dived so all should lose equally.

For example:
There was £12 and there were £4 taxes to pay
£12 - £4 = £8 and then the £8 is split so £2 for each brother

If the money had already been spilt
£12 divided by 4 = £3 for each brother
Then there is £4 taxes to pay which is £1 off each brother so each brother gets £3 - £1 = £2 so each brother has £2 left.

However I would definately ask for proof as the fact the brother who is executor managed to give out the inheritance before the debts had all been cleared makes my wonder what other huge mess ups he's made. Like as executor that is like an enormous blunder!

@oncemoreuntothebeachdearfriends Paying out before you know the full tax position is poor anywhere in the world.

OP refers to ‘our bank’ in her posts. If the funds were paid into a joint account then they are a joint marital asset and OP has equal say over what happens to them. It isn’t greedy to point out that it’s unwise to hand over a large sum of money with no proof it’s owed, just to keep the peace. Which, according to OP is what her DH is proposing.

I would ask for sight of the official documentation stating the amounts due and to whom - simply to prevent another request for more money down the line because affairs still weren't properly settled. At least if you've seen the paperwork you a) know it's true and official b) know who to pay the monies to and c) know that this will be the last full and final payment and DB isn't going to come after you for another 10k a year or so down the line.

@naffusername
I think it's important to know what country you are in, some posters seem to assume UK when you are obviously not.

In the uk it’s clear mistakes are down to the executor! Dont pay out until all taxes are paid. DIY is the enemy here. If you use a decent solicitor you don’t get this rubbish. The executor is responsible. However full accounts should be shown if they want money after distribution and op is entertaining this as a possibility. I now would expect to see the will, the accounts and the tax demand! Is it accurate? Is it too high? Can it be argued against? What tax is it? Full details should be given. What do other brothers think?

The op gave the executor their account details presumably. This is all very badly managed and irregular. Bigger fool the executor.

those who say all tax is paid before probate is granted you can still owe tax if the deceased owed income tax as you can pay this after probate

But OP is clear that the brother says the tax is due on the estate owing to the fact that he released the funds too early. I just don’t see how this is possible because probate isn’t granted until the estate fees have been paid.

I’m not sure OP is in the UK.

There can well be other taxes. We paid IHT before probate, but then there were two tax returns to be done for my mother’s income tax for the year before she died and that year. Then there was the estate’s own self-assessment as it received a small amount of interest on delayed payments of insurance. Then if a property sells for more than values at for probate, there can be CGT.

i am keeping back some funds in case the latest form I filled in shows we still owe income tax. I actually don’t believe we do, but best to be cautious rather than ask other beneficiaries to refund the estate.

Before you do anything you ask for a full breakdown of the estate and a full breakdown of all outgoings so executor fees what it’s been spent on with involved to prove. A copy of any tax bills still owing a copy of what was sent to each party copy of how much the house was sold for and any other bills settled. Then you can decide if there £10k is owed

Why are OP and her son greedy for pointing out that it’s unwise to hand over the money with no proof that it’s owed and no way of knowing if it will be paid ? If the inheritance has been paid into a joint account, which sounds very much the case, as OP has referred to ‘our bank’ then the money is a joint marital asset and as such OP has an equal say in what happens to it. Handing over ten grand with no proof it’s even owed just to jeep the peace is insane and l’d be furious with my DH for even suggesting something like this.

This!

Look it's very simple really - if your husband owes it then it should be paid. But the BIL needs to show the proof that it is truly owing. Does seem odd that he's only asking for it now though so long after probate has been granted and the house sold which is why I'd insist on seeing the paperwork.

Ask for all the paperwork, if this happened 2 years ago it seems a bit odd, what was the total amount of her estate? We had a solicitor check ours so that we knew we were right

Pack away your indignation for a minute and look at the facts. Where has the OP indicated that she’s looking at the money as hers ? If my DH was considering handing over ten grand of what is essentially joint marital funds if it’s gone into any kind of joint account, then l’d expect to be involved in the decision as an equal partner in the relationship. And there is no way l would be agreeing to a large sum of money being handed over to the brother with no proof that it’s owed or that he will even pay it.

How can you be sure about that? I don't see enough from the OP to come to any certain conclusion, what have I missed?

An executor is very stressful so your bil has my sympathy.
Once the tax has been confirmed, I would definitely pay my share.

You sound greedy and your son sounds as if he takes after you. Stay out of it, it's your husbands decision and he sounds honest.

As far as l’m aware probate isn’t finalised until any tax deemed due on the estate has been paid, so how was the executor able to release the funds to those inheriting before probate was granted ?

Your assumption that the OP dislikes the brother and is ‘just being a cow’ by disagreeing with her DH is not only rude but utter nonsense. You don’t just rock up at someone’s door three years after the estate has been settled and claim that you’re owed ten grand in unpaid taxes with no proof. OP is one half of the relationship and therefore equally affected by the consequences of her DH just handing over the money to his brother with no proof that it’s owed, or that he even intends to pay the alleged taxes. It is absolutely not the same thing as an employer or a bank accidentally overpaying you because in those cases there will be a paper trail of evidence that you have received funds in error.

The correct thing to do is for DH to try to clarify the circumstances in which the taxes weren’t paid, and ask for the paperwork from the tax office demanding the payment. Then using the references on said paperwork (if it actually exists) contact the tax office himself to verify that the tax is due and if possible, pay his proportion of it directly to the tax office. OP is spot on in her suspicions. If this is genuine then the brother will have the paperwork to prove it and l wouldn’t be handing over a penny until l’d verified it.

OP is not in the UK. There may be fees in other jurisdictions

There are no "executor's fees" unless it's a solicitor dealing with the estate - I was executor of my father's will and the rules are very, very clear that such executor's cannot take a "fee".

It sounds as if BiL didn't properly understand what he was doing.

Edited: I see the OP is not in the UK and so rules on ''executor fees may be different.

Exactly. You see the paperwork , you speak to the professionals (last time I checked the bank wasn't the person to tell you your liability without knowing the full facts and even you didn't see much paperwork ) and find out what the legal requirements are and so on. If there was a genuine mistake then you're only paying what you would have paid anyway.

He needs evidence that the tax needs paying and everything else is in order. Then each brother should pay it, if it’s only due to an oversight that he was underpaid.

I don’t think any of us can advise about what you should do without knowing the legal position where you are. In the U.K. the executor should pay the IHT before distributing funds. What if the beneficiaries had spent it all? The executor would need to just pay it. But it may be different where you are. I’d certainly be paying nothing without full accounts having been shown to me

You are being lied to by son 3
Do you really care about keeping in good graces with a liar?
Does your husband?

If my sister was asking me for 10k I would pay it. If .y brother was asking he'd have to show me the paperwork and prove it.