Dear Members
An executor has administer the estate himself. One of the beneficiaries is his nephew and despite asking for his bank details on several occasions he has had no response. He believes that this is because the nephew ( over 18) is in receipt of benefits.
What can the executor do ? Am I correct that it needs to be paid into court ? Can anyone advise me of the process or any ideas
Many Thanks
Collette
I’d suggest writing - delivered signed for that unless he accepts the gift in a given period of time the gift will be deemed disclaimed under section WA 1837 - 33A Disclaimer or forfeiture of gift. (Disclaimed by conduct).
Or ask the recipient to sign a disclaimer under the same section. If they agree theyre deemed to have died before the testator and DOV is not required. (Disclaimed in writing).
The whole gift must be disclaimed and they cannot have received any benefit prior to disclaiming.
Richard C. Bishop
PFEP
Thank you , if it is disclaimed then the other beneficiaries receive that share , is that correct .
Collette
If the gift is disclaimed then it will pass in accordance with the terms of the Will (i.e. to whomever would have inherited if the beneficiary had predeceased the testator). However, I believe a deed of disclaimer is still considered a deliberate deprivation by the DWP and so the beneficiary are likely to still lose their means tested benefits even if they never receive the gift.
I would actual suggest highlighting to the beneficiary that they cannot maintain their benefits, and will need to accept the gift. If they use through the funds, so that they once again qualify for means tested benefits then they can reapply. By refusing to accept the funds they are running the risk of the DWP stating that they continued to receive benefits at a point where they were no longer eligible, which could result in them needing to repay money to the DWP as well as having their benefits removed.
Thank you so much , I have just checked and the executor made a payment of £1000 to him already !
Yes they do. As per the terms of the will.
Richard C. Bishop
PFEP
Its my understanding that would revoke the ability to disclaim.
Perhaps another forum member could confirm.
Richard C. Bishop
PFEP
Why can’t the executor just issue a cheque? If it is presented, then that is evidence of receipt. It is not the executor’s responsibility to ensure that the beneficiary reports the inheritance to DWP, but of course it is advisable to make the beneficiary aware of their legal responsibility.
Patrick Moroney
Patrick
What happens if the beneficiary doesn’t cash the cheque
Thanks
Collette
You mentioned that the executor had already paid £1000 to this beneficiary.
How was that payment made? Obviously if you are unable to make payment of the balance, then, as you said in your original question, payment into court will have to be considered, and perhaps the beneficiary should be made aware of that and the possibility that he may have to pay court costs in the future in order to retrieve the balance of his legacy. Unfortunately, although it is unfair to the residuary beneficiaries, the cost of paying it into court may have to be borne by the estate
Patrick Moroney
Unfortunately I understand it was paid to a family member . It just gets worse !!
Thank you Patrick , do you know how someone would pay money into the court
There was a discussion on this in January 2019, in which Paul Saunders gave helpful response. Personally, I haven’t paid money into court in a case, but one never knows when it may arise.
Patrick Moroney