Intestacy payment methods

Hi new to this. So I will just jump in . I am trying to deal with a beneficiary who refuses to submit their bank details for payment but offered a family member bank details to pay their inheritance into who is not a beneficiary.
the beneficiary is not a joint account holder and refuses to accept any other payment. Would they have to follow the rules a submit a deed of variation or can i make payment providing the submit a letter of instruction instruction me to pay. i am aware that it may be a attempt to hide the inheritance from the benefits people , im just interested in how to proceed.
any advice or experience appreciated.

Have you been able to verify that the person you are in contact with is the beneficiary, and not a third party (perhaps the family member) masquerading?

Whereas many years ago it may not have been unusual for an individual not to have a bank account, and therefore legacies might have been paid to another family member to pass on to them, in the light of the current anti-money laundering legislation, etc., adopting that route may well now pose serious risks.

Whilst you mention the possibility of the beneficiary being in receipt of means-tested benefits, have you undertaken a bankruptcy search, as that could throw up another reason for them wanting payment to a third party.

My inclination would be to require them to have a face to face meeting with a solicitor who can verify their identity; verify that they are not in receipt of means-tested benefits, nor are subject to a bankruptcy petition/order or an individual voluntary arrangement; and provide a satisfactory explanation as to why payment should be made on their behalf to the family member.

I accept that this may look like “over-kill” but if the amount involved is substantial, you need to protect yourself.

I would not suggest the beneficiary might consider a deed of variation, as that could lead to you to being viewed as “facilitating” if the reason for the payment to the other family member is to maintain means-tested benefits or to avoid creditors.

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support and advice to fellow professionals

Hi Paul

I can confirm the beneficiary I’d . It is a case of being in cooperative and doing what they can to frustrate the process. They have a bank, refuse to give account details so they may be paid they ask for cheque . I made arrangements for cheque . Informed them it will require them to sign upon collection . They refuse to collect. The
Beneficiary is known for seeking excuse to go into litigation hence I have to protect the estate and ensure no liability should they lose a
Cheque and it be somehow cashed and a claim brought forward against the estate for
None compliance if intestacy rules. Then situation as some what escalated to a extent of threats. Thank you for your advice. It is appreciated.