How to 'store' money for estranged sibling

[AnalLysis]

Hi all, apologies, this is long but I want to be clear.

My DSis and I are due to inherit some money from my late mum's estate. I am being confirmed as executor (Scotland) with the assistance of a lawyer given the size of the estate. There was no will and therefore it's a straightforward split between siblings. However - we have another, older sibling who has been estranged from our mother since her first marriage ended in the 1970s and a stepmother came onto the scene. We have never met this woman, and are both in agreement that this would possibly turn her world upside down and be very distressing, particularly as we don't know the full circumstances surrounding the divorce, custody battle etc. However, ultimately this money is hers. With advice from the solicitor, we have decided that for now, we are going to put a pin in it. Essentially the plan is to be paid half each, then each put a third into a joint savings account for our sibling. The solicitor has advised we both need to sign an indemnity stating our understanding that this chunk belongs to her. We can then take some breathing space to decide how and when to contact her (assuming we can track her down). However this means that we are both going to end up with more than we are due initially, which is an issue for my DSis as she is currently on Universal Credit. She is working full time, but it is looking increasingly likely that she may have to stop working for a period of time to look after her DD who has a degenerative condition and is a year away from being old enough for adult residential care.

We asked whether I as executor could be paid two thirds of the estate (therefore have sole responsibility for looking after sibling's share), but apparently this is not possible unless I've misunderstood.

My question is, given all this, what is the best way to store the money for my estranged sibling without this impacting my sister's day to day life? Obviously her own inheritance will impact UC and this is clearly fine, we've no interest in rinsing the benefit system. It's more that we don't want her income to be impacted by 'holding on' to someone else's money. Would the indemnity be enough to show that this money isn't actually hers?

Thanks for any advice.

Im confused, if there is no will and therefore a straightforward split between siblings, and there are three siblings then why does it need to be split in two and then split again.

Why cant it be split in 3 immediately?

Exactly

Yes it sounds like you're making this really hard on yourself. Is this your older sibling so same mother?
You could get your solicitor to track down your sibling, then transfer them the money and state that you aren't ready to meet them but would like to at a later date or use this opportunity to reconnect with your older sibling.

You don’t store it. You track her down now and ask the solicitor to write a boring letter to arrange for the money to be transferred to her.

Do you know where she is? Could it be placed in some kind of trust if not?

She is legally entitled to the money and you have no legal right to keep it from her because you don't know the backstory.

Why on earth is a solicitor agreeing that the third sibling does not receive their inheritance now?

It goes 3 ways according to the law.

I don't understand what the issue is at all?

This needs to be posted to the legal branch rather than the money branch, surely?

Because there's nowhere to send it to. They don't have any details of the sibling.
OP in this case you should be able to pay a third party to store it. Look up heir hunter companies.
It shouldn't be in any of your names!
I'm surprised the solicitor hasn't advised this.

Is it that you think your sister may not know that your mother was her biological mother? Was she really young when they separated?

Does anyone know (family, friends, neighbours) where the the older sibling is? If yes then the solicitor writes her a letter outlining her inheritance. If not then find someone to track her down then get a solicitor to write to her.

As an executor you don't get to decide to "hold on" to someone else's inheritance. For all you know this estranged sister could be very hard up and greatly in need of the money. Or be profoundly comforted that your DM included her in her will.

It sounds rather fishy that you've decided you know what's best and that coincidentally that means you keeping hold of the money. Just make arrangements to pay her and let her worry about the aftermath.

This sounds really dodgy, if there is no will how are you legally allowed to keep money from your sibling. You don't need to say anything to her, the solicitor can write her a formal letter to issue with the money. The indemtiniy is not much good to her if the poor woman never finds out, I think it looks like you are trying to swindle her.

Surely you, as the executor should be able to hold get amount in a separate account without involving your sister? Or if the solicitor is also an executor, they can?

I have no legal qualifications, but this seems really odd. When someone can't be found, the money is lodged somewhere without involving family, so why is this not possible in this instance?

We had a situation where many people in our extended family inherited from a reclusive lady nobody had met.

The solicitor did all the leg work and then sent out the money once everyone was tracked down. Nobody held onto the money apart from the solicitors.

This isn't your money I don't know why you would have it at all!

I think you are well-meaning, but I also think that you need to find your sister as soon as possible and give her the money that belongs to her.

Perhaps she already knows that her mother is dead?

There's no need to make this so complicated, why are you deciding it's a 3 way split to include a woman who hasn't been near your mother in 40+ years??
Being an executor in Scotland is easy, liquidate the assets and divide them up, there's no obligation for your DSIS to receive the whole amount which will affect her UC, you can easily hold it for her.

Agree, find her, give her the money, and maybe welcome her back in to the "fold"

It's not that she can't be found, it's that OP thinks she should not get her legal inheritance now.

@WasabiWinner

OP doesn't want to. OP thinks they have the right to decide not to give it to the woman.

It was quite strange back then for a child to go with the father and have no contact with their mother at all? I agree with others just get the solicitor to try and find her, send money and a letter explaining and job done. Can make contact later if want. If she can’t be found then no issue

This seems all shades of wrong to me too.

The money should be split into 3, the two of you get your share. The third stays in an interest bearing account under the name of 'Executors of XYZ' and then efforts are made to trace the person via solicitors.

I don't get that impression at all. I think that OP and her sister want probate over, but want to take time to tread carefully over contacting this person. Add that they don't know where she is or what her circumstances are at this point.

Personally I think they're being over-careful. It's not really their problem if this throws a bomb into her world. If it does, there's no amount of sensitive handling that will make any difference. I'd just find her/let the solicitor find her, and get on with it. It's not for OP and sister to feel obliged to pick up the pieces if the contact isn't welcome. None of that part of it is their responsibility

There’s no way you should be keeping any inheritance , just leave it in a separate bank account until she is traced - it does sound like you just want to control the situation when it’s not yours to control really , she should be traced and funded

Employ a tracing agent (or get your solicitor to do so).