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How to 'store' money for estranged sibling

96 replies

AnalLysis · 18/06/2023 15:43

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.

OP posts:
AnalLysis · 18/06/2023 17:49

Hi all, was driving hence delay in replying. Thank you for the input. I am concerned that my solicitor has given us potentially dodgy advice on this score, and am glad to have the answers here. To clarify - this is absolutely NOT about keeping money from her. I would not be able to live with myself if I did that, as you say this could be a life saver for her. My initial suggestion to the solicitor was a three way split, with her third being kept in trust until we find her - it was he that suggested we put it in savings for now. I was a bit baffled as to why it needed to come to us first.

to clarify, she was 2 at the divorce so may not be aware of her parentage. But absolutely fair comments that it’s not my job to manage her life.

I’m out this evening but will check back in later. Thanks for advice so far.

OP posts:
Dinkler · 18/06/2023 17:59

It's not your concern what it could be for her though. It's pretty straightforward op. If it's you solicitor giving this advice then contact another.

RedToothBrush · 18/06/2023 18:04

Get a reputable solicitor. This one isn't.

Careerdilemma · 18/06/2023 18:10

You need to track her down. For all you know she could be about to lose her home and the money could be life changing.

Get the solicitor to do it and ask whether there is any way of doing it without specifying it is from her mother. Could they just say that a relative has died without a will and under the intestacy rules (or whatever the Scottish equivalent is) she is entitled to a share.

flagpie · 18/06/2023 18:11

Careerdilemma · 18/06/2023 18:10

You need to track her down. For all you know she could be about to lose her home and the money could be life changing.

Get the solicitor to do it and ask whether there is any way of doing it without specifying it is from her mother. Could they just say that a relative has died without a will and under the intestacy rules (or whatever the Scottish equivalent is) she is entitled to a share.

Goodness you can't lie about an inheritance Confused

GasPanic · 18/06/2023 18:12

It's not your money to choose whether to "store" it or do anything else with it.

As an administrator you are responsible for administering the estate according to the law.

You mention one of your sisters personal situation. But that has nothing to do with how you execute your responsibilities as administrator.

MagicBullet · 18/06/2023 18:20

AnalLysis · 18/06/2023 17:49

Hi all, was driving hence delay in replying. Thank you for the input. I am concerned that my solicitor has given us potentially dodgy advice on this score, and am glad to have the answers here. To clarify - this is absolutely NOT about keeping money from her. I would not be able to live with myself if I did that, as you say this could be a life saver for her. My initial suggestion to the solicitor was a three way split, with her third being kept in trust until we find her - it was he that suggested we put it in savings for now. I was a bit baffled as to why it needed to come to us first.

to clarify, she was 2 at the divorce so may not be aware of her parentage. But absolutely fair comments that it’s not my job to manage her life.

I’m out this evening but will check back in later. Thanks for advice so far.

You seem to be much more on the ball than your solicitor 😵‍💫😵‍💫

id get advise from someone else tbh.
The idea if a trust is great because then the money is hers. There is discussion etc…
Then you need to find her. If you are really concerned about the way she would react, then have a third party involved (like a solicitor) to inform her.

Fwiw yes that money might be life saving for her.
But she might be dead with children/siblings who dint get on. That’s where a solicitor could be more than helpful.
You don’t want a system that will hold up the inheritance fir you and your sister whilst she/they sort out their side iyswim

burnoutbabe · 18/06/2023 18:37

A trust is not needed at all, at this stage.

Keep money in a solicitors account, track her down, ask to transfer the money to her.

Now if she refuses, yes maybe a trays is appropriate then but else it's seems this could all be wrapped up in a month (assuming she can be tracked down)

So share it 3 ways less a Chunk to pay legals/tax /private detective etc

Cantstandbullshitanymore · 18/06/2023 18:52

WasabiWinner · 18/06/2023 15:56

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.

If they have no details about the sibling then how does she know she is on UC, and she may have to stop working due to her child’s degenerative disease etc?

Cantstandbullshitanymore · 18/06/2023 18:55

@WasabiWinner ignore my post I mixed up the sisters. It’s her Dsis that’s on benefits and need the money now and they can’t find the step sis.

AnalLysis · 18/06/2023 18:57

Thank you all, can always rely on mumsnet to talk sense.

@Cantstandbullshitanymore the UC credit situation is my younger sister ie the one I’m in contact with.

I can absolutely see why some of you think I’m trying to pull a fast one, it sounds so iffy. I’m glad I had enough doubt in the advice to ask here! It’s possible I’ve misunderstood the solicitor and I’ve never dealt with inheritance before so all a bit woolly to me. I will instruct about executor account/tracking her down etc.

OP posts:
Dinkler · 18/06/2023 19:00

Good luck op, all the best.

PenelopeRidesAgain · 18/06/2023 19:09

Not sure about Solicitor's Accounts Rules in Scotland but couldn't the money be split in 3 and the third due to the other party be held on deposit until the party is traced? The account should accrue interest and this is paid over with the lump sum.

Cantstandbullshitanymore · 18/06/2023 19:13

AnalLysis · 18/06/2023 18:57

Thank you all, can always rely on mumsnet to talk sense.

@Cantstandbullshitanymore the UC credit situation is my younger sister ie the one I’m in contact with.

I can absolutely see why some of you think I’m trying to pull a fast one, it sounds so iffy. I’m glad I had enough doubt in the advice to ask here! It’s possible I’ve misunderstood the solicitor and I’ve never dealt with inheritance before so all a bit woolly to me. I will instruct about executor account/tracking her down etc.

No worries I reread your post and got what you’re saying.

There has to be a way to split the inheritance into 3 so you and your sister get your shares now and the 3rd share placed in a trust until your other sister is found.

saraclara · 18/06/2023 19:14

to clarify, she was 2 at the divorce

Your poor mum.

SkaneTos · 18/06/2023 21:08

Thank You for the update!
Good Luck with everything!

Stomacharmeleon · 18/06/2023 21:36

My brother does this for a living. He is a probate genealogist. They can find anyone... or confirm what has happened to them. I would at least attempt to find her as legally it's her money.

gloriawasright · 18/06/2023 22:35

Cantstandbullshitanymore · 18/06/2023 18:55

@WasabiWinner ignore my post I mixed up the sisters. It’s her Dsis that’s on benefits and need the money now and they can’t find the step sis.

Not a step sister.she is a half sister.they share the same mother.
I am also assuming that the ops own father is already dead.

AnalLysis · 19/06/2023 13:09

Hi all,
Thank you for all of the responses so far, I have read them all this morning.
@saraclara, I think you have interpreted my posts exactly as I meant them, this has been very helpful. It probably should have been in legal, but I came onto the board thinking my legal advice was ‘done’ and I was looking at financial management. @Dinkler, in your shoes I would have been sceptical of this set up too, particularly since it seems I’ve either been given dodgy advice and/or misunderstood it, thank you for your honesty.

@sparkleice, definitely not a reverse (I sort of wish it was, that might be easier…)

I will be absolutely clear and say there is no way I would try and overcomplicate or eke out this process, I just want it done and I do not want to look after money belonging to someone else. DSis is in agreement, given her circumstances the last thing she needs is a pile of savings that don’t belong to her. I’m glad to have clarified here that I’m clearly wrong about how that works. Even if we can’t find her (highly unlikely), she has twenty years to decide whether to claim her share, I certainly don’t want that hanging over me although I suppose some people might take that chance. @Katrinawaves I agree that having money sitting there is just too big a temptation, no matter how much I trust myself and DSis – it was one of the reasons I was looking for a secure way to store it. It does feel as if it’s becoming unnecessarily complex, and neither DSis nor I are looking for drama, we’re just trying to navigate a situation neither of us have been through before.

@JKrowlings I’m not sure what you mean? I am still waiting to be confirmed executor, so nothing has been paid out, there have been no delays on that score. If you are referring to my mother never making contact in her lifetime, well – yes, I agree that’s shit.

To answer some other questions that came up:
Half sister is the child of my mother and her first husband. They divorced when she was two. I have the divorce papers and custody documents but very little detail. At the time of the custody hearing apparently there had been no contact from my mother for 6 months. I don’t know why this was, it’s certainly not how I would have acted, but I suspect there were some mental health issues at play and perhaps the longer it went on, the harder it became for my mother to establish contact again. This is speculative though. Half sister has a stepmother who has been on the scene since the time of the divorce, and there was no adoption to my knowledge, so she remains legally one of my mother’s children.

Yes, my own father died several years ago.

There is no one in the family who knows where she is, but as PP have said, I imagine she will be very easy to track down given the details I have. I have never tried to contact her for fear of upsetting my mother, and obviously things are still a bit fresh, but I can see now that I’m being overly cautious about how and when this news reaches her, and that I can’t let it impact on my legal obligations.

Solicitor is well reputed (and Scottish), and therefore I’m now wondering if I’ve misunderstood what he said (I don’t think I did, he certainly talked about putting it in savings, but maybe he meant with a third party….? That doesn’t explain the indemnity though). I’m sure he did say they couldn’t hold onto it though which seems odd. I will definitely go back to him with further questions regarding this and give clear instructions prior to the money becoming available to pay out.

OP posts:
SkaneTos · 19/06/2023 21:10

Thank you again for the update!
I hope everything works out.
I can't give any advice about the solicitor stuff, but perhaps someone else here can.
Good Luck!

DemonicCaveMaggot · 19/06/2023 21:23

If your solicitor doesn't have a client account to store the money, then you can set up an executor account at a bank. Our solicitor had a client account but she also handled conveyancing so used it to store money from house sales, your solicitor may not.

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