Beneficiary without bank account

Hi all,

Would you please let me have your views on the following issue:

Pecuniary legatee left £5k under a Will. Legatee cannot/will not accept the money by cheque or bank transfer as he claims he has no bank account.

Should I:

  1. Pay the money to his mother to hold for him as bare trustee (with a suitably worded receipt), or
  2. Require that he enters into a Deed of Variation and give the money on to his mother (if she then wants to give it to him in cash that is up to her), or
  3. Ask him to disclaim, as he is unable to accept the gift (but I suspect he won’t agree to that).

I had initially refused to pay the money to his mother as I was concerned that it may be a benefits fraud but he hasn’t told me this and I guess I cannot assume he is out to defraud the taxpayer (although it is odd that a min in his 50s doesn’t have a bank account). He has no capacity issues.

As ever, your thoughts would be most appreciated.

Expensive, but how about twenty Postal Orders?

For the sake of £5,000 might he not be persuaded to open a bank, building society or post office account? It would be more secure than having that much cash lying around. Otherwise, provided the mother is amenable, it sounds like she would be a suitable alternative, although I imagine she is quite elderly so what would happen to the money, on a practical level, if she suddenly died? Perhaps she could be persuaded to open a joint account with her son so that he will always have access to it.