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Original poster

Not sure if I'm allowed to spend my inheritance money

25 replies

DownUdderer · 24/01/2021 02:59

Hi, I've just joined money saving expert but I'm waiting to be accepted. So I thought why not see if I could get guidance from Mumsnetters too!

I have a friend and they have debts that are big and have been slowly paid off over the last ten years.

They're getting a huge inheritance and of course paying off the debts would be the best first step, but the will stated that the money must be used for a house or business.

Can the money be controlled in this way?

There is no trust.

I would like to push my friend towards proper financial advice but I'm not sure where to suggest. Or who to suggest.

Can any kind Mumsnetters make any suggestions?

Thanks

OP posts:

RedHelenB · 24/01/2021 07:09

Is it a trust? If not the money will just come to your friend and they can do what they like with t the money, no one will know.

Original poster

DownUdderer · 24/01/2021 07:19

Yes. I agree with you! There's no trust. My friend doesn't believe me and is very uncertain. I think they'll need some good advice from somewhere, a solicitor perhaps.

OP posts:

ForensicAccountant · 24/01/2021 08:12

It’s a bit daft to put such a clause in a will without taking steps to administer this.
I am pretty sure all your friend’s creditors want full repayment when they find out.

CupoTeap · 24/01/2021 08:15

Is it enough to buy a house outright?

SparklePiggy · 24/01/2021 08:15

Is your friend secretly hoping it is correct, to delay the payment of her debts?

Dcadmam001 · 24/01/2021 08:21

Surely paying off debts is the first step to getting a mortgage etc for a house - it’s just sorting your finances out for when you own a house. If you phrase it like that to her she might feel happy that she’s complying with the wishes of the person ( although as others have said once it’s her money she can do what she wants)

BeaSmithers · 24/01/2021 08:45

If it isn't a trust, then any wording on the will is merely a 'wish' and not legally enforceable. Many people put these things in wills....for some people it's a control thing, but often people think they're being kind and helping someone out. Your friend can do what they want with the money.

Original poster

DownUdderer · 24/01/2021 09:23

Thanks I've told my friend this. I was hoping someone might suggest citizens advice or something similar that could help my friend understand. They're not financially clued up. I've told my friend to pay off debts then think about buying a house, but they're just unsure. I think I'll suggest talking to a solicitor for guidance.

OP posts:

RedHelenB · 24/01/2021 10:32

There really is no need to spend any money on a solicitor in this instance. Pay the debt off and then see a financial advisor for options for what to do with the rest but oy if we're taking about a very large amount.

VanGoghsDog · 24/01/2021 10:56

Can the money be controlled in this way?

Nope. And solicitors always tell people not to put this sort of thing in their wills.

I mean, the testator might haunt her, but that's about all.

No solicitor required.

HeronLanyon · 24/01/2021 11:01

Just been executor with will and have probate solicitor and have made my own will v recently.
My understanding is unless the monies have been put into a trust (managed by trustees and distributed only in accordance and for the purposes of the trust) then there is no control and you friend will receive the monies and can do as she sees fit.
Likely not to get monies for quite a while awaiting probate and then a further 6 month period to avoid any disputes without leave of a court.
Agree with everyone else the desires of the testator are not legally enforceable without a trust. Paying off her debts is likely to be the very first step towards buying a property if that is what friend wants to do.

Original poster

DownUdderer · 24/01/2021 11:55

Thanks guys. You're helping me really appreciate the answers. thanks. I think I had started doubting myself when I said that the money could be spent on whatever they wanted to spend it on. There's no one to stop them!

OP posts:

VanGoghsDog · 24/01/2021 14:48

Likely not to get monies for quite a while awaiting probate and then a further 6 month period to avoid any disputes without leave of a court.

Probate is currently really slow due to Covid, ours this year took 6m.

No idea what you mean about the "further six months", I've inherited twice on the past couple of years, first time was three months after the death, most recent probate took six months but the distribution was only a couple of weeks after that.

No-one oversees this, as soon as you get the grant of probate the banks release the money and executor can carry on from there. No court is involved.

HeronLanyon · 24/01/2021 16:18

vangogh if there may be a validity issue (someone not inheriting etc) they can challenge the validity of a will as of right (ie without getting leave of a
Court) for 6 months after date of probate. Most solicitors advise executors very strongly not to distribute before that period as any distribution before the 6 month which is then successfully challenged becomes the executor’s personal liability ! Once 6 months is up anyone challenging has to get leave of the court and any distribution then successfully
Challenged becomes a liability of the estate.
That’s why in lots of cases distributions (or the bill of them) are held back for that 6 month period.

ElGuardiandenoche · 24/01/2021 20:47

Just a quick question about the repayment of the debts. Is he in a Debt Management Plan or IVA or in bankruptcy?

Original poster

DownUdderer · 24/01/2021 21:37

He has a debt repayment plan, I'm not about the details he's too embarrassed to tell me.

OP posts:

Original poster

DownUdderer · 24/01/2021 21:37

He's not bankrupt

OP posts:

VanGoghsDog · 24/01/2021 21:58

@HeronLanyon

vangogh if there may be a validity issue (someone not inheriting etc) they can challenge the validity of a will as of right (ie without getting leave of a Court) for 6 months after date of probate. Most solicitors advise executors very strongly not to distribute before that period as any distribution before the 6 month which is then successfully challenged becomes the executor’s personal liability ! Once 6 months is up anyone challenging has to get leave of the court and any distribution then successfully Challenged becomes a liability of the estate. That’s why in lots of cases distributions (or the bill of them) are held back for that 6 month period.

Well, the vast majority of wills are very straightforward and in England at least there really are very few ways a will can be successfully challenged.

My widowed nan left everything to her only surviving son. No-one could contest that.

My dad left everything to my mum except two bequests to me and my brother, he left out my sister but leaving a non dependent out of a will is no grounds for a successful contest of it, so mum was quite right to distribute. (And we pretended to my sister that she wasn't left out and mum gifted her the same amount anyway).

Solicitors may advise that, but again, the vast majority of people don't use solicitors!

HeronLanyon · 24/01/2021 22:06

Agree vangogh there are a lot of scenarios. Nice adjustment made by your family. I did something similar with agreement of everyone else after everything was sorted out to kind of iron out a small wrinkle. Tough stuff eh ? Sorry about your dad.

VanGoghsDog · 24/01/2021 22:10

@HeronLanyon

We didn't adjust the will*, because we didn't want my brother to find out, so only me and mum know. Mum now has to make me her executor (brother is currently) so my brother doesn't find out later and tell my sister (he's a shit, he doesn't talk to sister but he would make sure she knew, just to be hurtful).

Thanks re dad, it's been an odd time!

There would be no tax advantages because the estate is under the IHT limit anyway (as things stand....) and even if there were, assuming I was executor I would sort that from the estate and not have to explain why it was due really.

ForensicAccountant · 24/01/2021 22:19

@VanGoghsDog * There would be no tax advantages because the estate is under the IHT limit anyway (as things stand....) and even if there were, assuming I was executor I would sort that from the estate and not have to explain why it was due really.
Just as well it’s below the threshold as you can’t do that

VanGoghsDog · 25/01/2021 00:47

assuming I was executor I would sort that from the estate and not have to explain why it was due really.
Just as well it’s below the threshold as you can’t do that

Yes I could. I would pay the inheritance tax from the estate, which is where it comes from No reason I'd have to tell my ghastly brother about it. I didn't mean not tell HMRC etc , I just mean not tell my brother or sister.

Of course, I know they can ask to see the executor accounts but believe me, they are both totally self centered and won't care as long as they get some money. Neither of them has asked to see dad's will or looked at it on the probate website (I'd have heard if they had, because of the omission of my sister), for example. And neither offered to lift a finger to help mum with all the shitty admin, so I know they won't poke around when she dies either.

ElGuardiandenoche · 25/01/2021 04:42

@DownUdderer

He has a debt repayment plan, I'm not about the details he's too embarrassed to tell me.

If he’s in an IVA then he will be required under the terms of it to use a portion (depending on the agreement he signed) of the money to the debt any way. If he’s in a DMP then he has no obligation to but he may feel like he wants to pay all or some of it off.

Original poster

DownUdderer · 25/01/2021 09:51

Thanks for telling me that @ElGuardiandenoche. I'll definitely tell them that.

OP posts:

ElGuardiandenoche · 25/01/2021 10:05

If he’s in a DMP and has a lump sum then he can ask to pay full and final sums to each of the debts to get rid of them.

Have a look at the Moneysavingexpert website to get help with paying it back. The Debtfree Wanabe board is great especially for help with f and f’s.

forums.moneysavingexpert.com/categories/debt-free-wannabe

Here’s someone’s experience of them
forums.moneysavingexpert.com/discussion/6234549/full-final-settlement-offers-my-experience-january-2021

Obviously if he’s in an IVA then it will be somewhat different.

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