Beneficiary problems

[BeneficiaryMadness]

Hi folks

Wondering if any of you have some advice. I'm sure you do!

My wife and cousin are executors for their late grandfather. As part of the process they have had a few assets to dispose of, all of which have now been sold, and the residual estate is to be split equally between four beneficiaries (the deceased's adult children). Three of the beneficiaries have been fine, and been paid their shares via bank transfer. The fourth has been asked for his bank details repeatedly, via text message and phone call, and is now refusing to pick up the phone or even talk to my wife or her cousin.

The beneficiary concerned - let's call him Tom (not his real name) - has been quite interfering through the process. He likes to feel he is in control at all times, and I think has found the whole thing quite difficult. Part of the disposal was a property, and Tom was hinting that he was disapproving of the amount the property sold for (which was market value, and Tom's brother and sisters were fine with). We think that Tom is doing this to try and make a point, although we're not sure what point he is trying to make.

Naturally both executors want this all closed as it has been a painful process for both of them. Tom is the only block here for them to be able to close the account and put the whole process to bed.

But how can we pay him if he won't give us his bank details? We could send him a cheque, but I suspect he wouldn't bank it, just to make our lives difficult. We don't want the money sitting in the account forever and a day as it is currently in our joint account and if something were to happen to us, then it would potentially get extremely complicated for the poor souls who had to deal with our estate.

We were thinking of sending a bankers draft by special delivery to Tom's address so that we can get a signature confirming delivery, and the money won't be sitting in our account any more. Then the onus is on him to pay it in. As I understand it, bankers drafts can only be cashed by the person they are made out to but what would happen if Tom decided he was going to tear it up in some kind of rage because of an issue he hasn't yet told us about?!

I never thought it would be this difficult to give someone some money. The amounts involved are not enormous, but they are in excess of £10k, so we would like it sorted.

Thanks for any advice you can give.

You need to get proper advice from a solicitor.

Send him it in cash via Securicor (or a service like that)?

I have no idea otherwise. If he's really annoyed you're right he could not bank the cheque or the draft meaning you would have to keep reissuing it when the cheque expires

I would put it in a separate account and say in your will that the money belongs to him and on his death to his heirs.

Send him a cheque by recorded delivery. He has six months to bank it. Text him to you're sending it. If he doesn't bank it get proper advice from a solicitor. Tell him you'll take the cost of that advice from his share.

If we send a bankers draft by recorded delivery that’s out of my hands then though? I’ve paid for the draft and it’s up to them to cash it as I’ve no longer got the money in my bank account?

Hopeful bump

I know this isn't what you asked, but I would not use my usual personal account for the distribution of funds for an estate for which I am executor. All sorts of things could go wrong.

Much better to get an executors account set up, or at least reassign one of your own accounts to only this purpose. The money can then lie there and not cause anyone any issue. When 'Tom' dies, you can pay it to his estate. Simples.

Put it in seperate account and Just leave it there - in your will say it belongs to Tom

Contact Cater Allen bank and set up an Executors’ account and pay the funds in there until he provides bank details.

Why Cater Allen in particular? Any bank will allow you to set up an executors account.

Tell him you’ve informed the inland revenue of his share of the estate? Might make him accept the money , if he thinks he will have to pay tax from it

@prh47bridge

Generally I have found Cater Allen the easiest bank to deal with in setting up Executors and Trustee accounts. Many bank do not offer these services.

@Arewethereyet21 Interesting, I would love to know which banks do not provide executor accounts.

I've had exec accounts from for example, both NatWest and RBS. Using a bank where you already have an account reduces the delays required to provide ID to comply with the money laundering regulations.

@Mumsnut a quick google would establish that IHT is paid out of the estate, and that it must have been paid before the funds are cleared for distribution (probate) to the beneficiaries.