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Question about being an executor and beneficiaries querying things

2 replies

hermionegrangerat34 · 05/01/2011 22:57

I wonder if anyone can help with a query on behalf of my mum? She and her brother have been 'executing' her dad's - my grandad's - estate since his death about 3 years ago. The house finally sold last year, and they have pretty much finished now. But now one of the beneficiaries (the residue was split about 15 ways!) is asking for accounts because they don't think they've been given enough and suspect that they've been diddled. I'm also an equal beneficiary, and don't think I've been diddled,but my mum is sick with worry that she's being accused of wrongdoing, to the extent that she's scared to open her email in case there's another letter, so I want to check what she can reasonably be expected to produce in the way of accounts? they have done the probate all themselves, so they don't have 'proper' accounts, but they do have a spreadsheet and an executor bank account.
I think the problem is that the beneficiary who is questioning things was expecting to inherit a lot more. There wasn't ever much money, and what there was mainly went on insurance, council tax etc while the house remained empty, so what was distributed was mainly just the house price - and that was very little, and half what it was originally on the market for courtesy of the credit crunch! But I think from something my mum said that she and her brother have also charged a smallish fee to the estate for their time (which was substantial) and I'm worried that this might not in fact be OK, though she thinks it is (I think she was told by her brother it was normal, and that maybe worry that it was in fact wrong is why she's so concerned about being questioned....).
Sorry this is so long! The question is, first, can an executor charge a fee? And do they have to produce accounts on demand, and if so do those accounts have to be in any particular format, audited, or whatever? I'd be very grateful for any info or advice as my mum is very very stressed and I seem to have become chief go-between!

OP posts:
Resolution · 06/01/2011 00:24

The executor can't charge for their time UNLESS there is a charging clause in the will allowing them to do this, and they are acting in their professional capacity. They'll have to pay that part back in to the estate I'm afraid, otherwise it is theft. They can charge for their reasonable expenses, but time is something they must not charge for.

Estate accounts must in law be filed at the probate registry after the estate has been wound up. When the executors applied for probate they will have promised on oath to file these accounts. There's nothing magical about them. It needs to simply list what money has come in (and the sources), and how it's been distributed. It must also deal with any assets that have been passed to beneficiaries in specie (ie as they are). They needn't feel their integrity is being questioned. I think it quite reasonable for any beneficiary to want to see estate accounts. After all, you want your bank to keep sending you statements. These are just the same.

hermionegrangerat34 · 06/01/2011 18:32

Thanks!

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