Share of money

[WalterHWhite]

Can anyone help me with this please? It’s not a big deal in the great scheme of things and I’m mathematically not the brightest!

My db and I have inherited money. The dwp paid £300 plus that they shouldn’t have into which is now the executor account.

He paid them back out of his own money. Obviously half was mine to pay but as I didn’t have it at the time, he was willing to wait.

Now that we have all the money and it is to be shared, he says I should pay the whole £300 odd to him. I think that as he has already had half of the £300 odd which was included in the total to be shared, I should give him half after it’s been distributed.

Sorry it’s so long but I have trouble with figures. I see things and then it goes away!

He paid £300 back initially and you paid nothing, you owe half each so if you give him £150, then he's paid £150 and you've paid £150.

That’s how I see it but he says as he paid it all, he wants it all back. Ok I get that but he’s having half back because it’s in the pot. Thanks for answering. I’ll see if anyone else sees it his way!

The ESTATE owes him 300.

1. If the estate's funds haven't been shared yet (this sounds like the case), you pay 300 to the estate (not to him direct). When you get your half, you'll get your half of that 300 back.
2. He could also pay himself 300 from the estate and THEN split the rest half and half.

1. If the funds have already been shared, you send 150 direct to him.

The executor account should pay him back £300 then you split the balance on the account 50/50.

If the estate had not yet been paid out to you both, the estate pays him £300. Now ( as this would be an allowable liability on the estate) or, before the estate is divided your brother gets repaid his £300 first and then you divide what is left between you.

If the money from the estate has already been paid to you, and he didn’t reclaim his £300, you owe him £150.

Yes, this is the cleanest way to do it. He gets his 300 back from the estate, so he's paid nothing. You've paid nothing. The rest gets split.

Ok thanks. This is what he’s suggesting - that before the money is distributed, he takes the £300. There is also a gas and electricity bill of £50 which I can’t see how I owe it all but this is the same yes? If he takes out his £300 plus the £50 bill before distributing the money, then that’s right?

I’ve just thought of something- sorry! He is saying that he wants to give me the inheritance less the £350 plus. I keep seeing it and then it goes!

Oh and the money hasn’t been distributed yet. It’s in the executor account.

To (hopefully) keep it simple, using easy numbers

E.g total amount in "pot" is 1000

DB paid the dwp bill 300
And gas/electric bill 50

So the "pot" owes DB 350
Take that away first. It is like if he paid e.g. a friends bill, they owe him that amount.

That leaves 650

Half to you 325
Half to DB 325

Before the estate's money is split, the estate has to pay all of its expenses. The estate owes your brother 300. That should be paid. About the 50 for utilities, either the estate pays it directly or, if your brother has already paid it from his personal funds, then the estate pays him back 50. THEN whatever is left over, it is split 50/50.

Think of the estate as a third person. It has 'borrowed' money from your brother for the bill(s) he paid. The estate pays him back first. Now you've both put in 0. Then it is split 50/50.

Thanks everyone. I’ve got it! I’ll tell him to pay himself the money first then we’ll split the rest. (Well apart from the other beneficiaries!)

Thanks for taking the time to answer.

There should be a spreadsheet or similar, which details all income and expenditure out of the executors account. So if he has paid anything, then that comes out, then the remaining balance is split. It is the easiest cleanest way to do it.

I just helped my friend do probate and we did all of this so that everything is clearly shown and then gave her brother a copy of it with his money.