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Are the beneficiaries or executors liable for taxes etc in aFter a death in Scotland

4 replies

DroothyNeebor · 08/06/2014 18:25

Scottish law.
The jist of it is a relative died last year.
There was a will made through their bank who were made executors.
The bank lost the copy of signed will and there have been several problems since then, ie sending out documents to wrong address, trying to pay into wrong bank accounts, sending out letters asking to fill in forms which were not included and the info given for contacting solicitors was incorrect ( meaning I had to go sleuthing to find out how to contact the solicitors on my children's behalf )

So I'm a bit sceptical about the latest development
The will been proved and confirmed through the Sheriff court.

Monies were paid out to the beneficiaries last month

Now the solicitors are saying there is tax due, please send a cheque to us ASAP
And by the way there may be money due back to DWP which the beneficiaries of the estate will have to pay out of the money they've already had placed in their bank.

Is this normal?

I'm not a lawyer but when my mum died I had to check with tax office and DWP and list anything due as a debt on the estate before even considering dispersing money and confirming the estate

OP posts:
chipsandpeas · 08/06/2014 18:30

as far as im aware (in scotland) the estate should settle all taxes etc before distributing to the beneficiaries

sounds like the solicitor has screwed up somewhere along the line

Musicaltheatremum · 08/06/2014 18:45

My lawyers did my husbands estate. Everything was paid out and I got the balance. (Including the lawyers fees)They should not be coming back to you for monies after the event.
I would write complaint letter.

poshfrock · 09/06/2014 06:45

This is definitely wrong! I am a probate lawyer, albeit not in Scotland, but the principle is the same.
All creditors should be paid before distribution of the net estate. That includes taxes (what tax by the way? ) and any refunds due to the DWP. Sometimes this can delay distribution which can be annoying for beneficiaries who are waiting for money but better that than to have the situation you are now in.
Did the Executors place statutory notices asking creditors to come forward and effectively putting a deadline on claims? In England the notices go in the London Gazette and at least one paper local to where the deceased lived. Not sure what the equivalent would be in Scotland. If they haven't placed any notices the creditors could continue to come forward for the next 6 years or so!

Anyway, the real point is that if the Executors have distributed too early then they are liable for unpaid creditors. Write and tell them that. And as an aside NEVER a point a bank as an Executor. They are very expensive and mistakes like this seem to happen all too frequently.

DroothyNeebor · 09/06/2014 12:46

Thank you so much for the replies.

The tax is due as the bank account was paying the estate gross interest

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