Uncooperative beneficiaries refusing to accept their payout
Discussion
A family member is in a slightly odd position. I'm asking on their behalf as they are not on Pistonheads.
A convoluted process led to this point, so I will be as brief as possible.
Let's call the family member Dan. He has been trying to pay out beneficiaries from a trust for over a year. His fellow trustee (also a beneficiary) was uncooperative, but eventually agreed via their solicitor that the trust should be paid to the beneficiaries.
Some beneficiaries have accepted their shares, but this trustee/beneficiary, plus one other, refused to give their bank details to Dan's solicitor. As a result, Dan's solicitor said they could not keep hold of the money and transferred it to Dan's executor account. Dan sent cheques several months ago, and these have not been cashed.
Dan is uncomfortable having this money sitting in his bank, even if it is in a separate executor account. Is there anything he can do? The cheques will reach their six-month expiry soon.
A convoluted process led to this point, so I will be as brief as possible.
Let's call the family member Dan. He has been trying to pay out beneficiaries from a trust for over a year. His fellow trustee (also a beneficiary) was uncooperative, but eventually agreed via their solicitor that the trust should be paid to the beneficiaries.
Some beneficiaries have accepted their shares, but this trustee/beneficiary, plus one other, refused to give their bank details to Dan's solicitor. As a result, Dan's solicitor said they could not keep hold of the money and transferred it to Dan's executor account. Dan sent cheques several months ago, and these have not been cashed.
Dan is uncomfortable having this money sitting in his bank, even if it is in a separate executor account. Is there anything he can do? The cheques will reach their six-month expiry soon.
Can’t Dan just tell the ones not giving their bank details to do just that otherwise the cheques will expire and they will not get their money.
Tbh I’m surprised that cheques are even being used still - the most recent estate I was Executor for also had solicitor engagement and she wrote to all the beneficiaries asking for their details.
This included my sister in Australia.
Tbh I’m surprised that cheques are even being used still - the most recent estate I was Executor for also had solicitor engagement and she wrote to all the beneficiaries asking for their details.
This included my sister in Australia.
alscar said:
Can t Dan just tell the ones not giving their bank details to do just that otherwise the cheques will expire and they will not get their money.
Tbh I m surprised that cheques are even being used still - the most recent estate I was Executor for also had solicitor engagement and she wrote to all the beneficiaries asking for their details.
This included my sister in Australia.
Dan's solicitor attempted to pay the uncooperative beneficiaries, but they failed to provide their bank details. The case was then closed, and the money was transferred to Dan, who had set up a special executor account for this purpose and sent cheques.Tbh I m surprised that cheques are even being used still - the most recent estate I was Executor for also had solicitor engagement and she wrote to all the beneficiaries asking for their details.
This included my sister in Australia.
paulguitar said:
Dan's solicitor attempted to pay the uncooperative beneficiaries, but they failed to provide their bank details. The case was then closed, and the money was transferred to Dan, who had set up a special executor account for this purpose and sent cheques.
Why didn’t Dan ask them for their bank details instead or did he and the same non response happened ?alscar said:
paulguitar said:
Dan's solicitor attempted to pay the uncooperative beneficiaries, but they failed to provide their bank details. The case was then closed, and the money was transferred to Dan, who had set up a special executor account for this purpose and sent cheques.
Why didn t Dan ask them for their bank details instead or did he and the same non response happened ?paulguitar said:
alscar said:
paulguitar said:
Dan's solicitor attempted to pay the uncooperative beneficiaries, but they failed to provide their bank details. The case was then closed, and the money was transferred to Dan, who had set up a special executor account for this purpose and sent cheques.
Why didn t Dan ask them for their bank details instead or did he and the same non response happened ?alscar said:
paulguitar said:
alscar said:
paulguitar said:
Dan's solicitor attempted to pay the uncooperative beneficiaries, but they failed to provide their bank details. The case was then closed, and the money was transferred to Dan, who had set up a special executor account for this purpose and sent cheques.
Why didn t Dan ask them for their bank details instead or did he and the same non response happened ?My research suggests he has duties as a trustee and needs to maintain a paper trail of his actions. Claude's (AI) suggestion is that he write to the uncooperative trustees once more, advising them of the expiry of the cheques. After that, he can/will make a payment into Court under section 63 of the Trustee Act 1925.
This is good news, and I think he will be relieved. He can pay it to the court, wash his hands of it, and it looks like the beneficiaries themselves will be liable for the costs.
paulguitar said:
Dan is old and hopeless on computers, so I am spending my morning researching this for him.
My research suggests he has duties as a trustee and needs to maintain a paper trail of his actions. Claude's (AI) suggestion is that he write to the uncooperative trustees once more, advising them of the expiry of the cheques. After that, he can/will make a payment into Court under section 63 of the Trustee Act 1925.
This is good news, and I think he will be relieved. He can pay it to the court, wash his hands of it, and it looks like the beneficiaries themselves will be liable for the costs.
I think assuming he can write to them Dan should include that “ threat “. My research suggests he has duties as a trustee and needs to maintain a paper trail of his actions. Claude's (AI) suggestion is that he write to the uncooperative trustees once more, advising them of the expiry of the cheques. After that, he can/will make a payment into Court under section 63 of the Trustee Act 1925.
This is good news, and I think he will be relieved. He can pay it to the court, wash his hands of it, and it looks like the beneficiaries themselves will be liable for the costs.
Yellow Lizud said:
Why do the beneficiaries not want the money?
I know someone further up the thread has said they'll take it off Dans hands, well I'm prepared to go halves with him!
They are disappointed beneficiaries. I know someone further up the thread has said they'll take it off Dans hands, well I'm prepared to go halves with him!
Dan has no idea why, having agreed to the distribution legally, they are now refusing to take their shares.
alscar said:
paulguitar said:
Dan is old and hopeless on computers, so I am spending my morning researching this for him.
My research suggests he has duties as a trustee and needs to maintain a paper trail of his actions. Claude's (AI) suggestion is that he write to the uncooperative trustees once more, advising them of the expiry of the cheques. After that, he can/will make a payment into Court under section 63 of the Trustee Act 1925.
This is good news, and I think he will be relieved. He can pay it to the court, wash his hands of it, and it looks like the beneficiaries themselves will be liable for the costs.
I think assuming he can write to them Dan should include that threat . My research suggests he has duties as a trustee and needs to maintain a paper trail of his actions. Claude's (AI) suggestion is that he write to the uncooperative trustees once more, advising them of the expiry of the cheques. After that, he can/will make a payment into Court under section 63 of the Trustee Act 1925.
This is good news, and I think he will be relieved. He can pay it to the court, wash his hands of it, and it looks like the beneficiaries themselves will be liable for the costs.
He can write to them and make it clear that they will be paying the court costs themselves if they continue to refuse to take their shares.
I had a situation somewhat similar. The ex-wife of the deceased refused the money because of guilt about the breakup. Following advice from a solicitor, I discussed the matter with the ex - whom I had got on well with before the break-up - and we came up with a plan: the money went into a further education fund for the two children he'd had with her or when they were 21 (I think). I took the cost of the arrangement out of the fund. The ex kept her guilt, and the kids got the money.
Such situations are not that uncommon according to the brief.
Such situations are not that uncommon according to the brief.
paulguitar said:
They are disappointed beneficiaries.
Dan has no idea why, having agreed to the distribution legally, they are now refusing to take their shares.
So in essence they are not accepting the money as it deems acceptance?Dan has no idea why, having agreed to the distribution legally, they are now refusing to take their shares.
Which also suggests a legal challenge coming down the road ? If not why not just take what is offered ?
I am involved with a few trusts as trustee - fortunately with no issues. However I do have to act in the best interests of the beneficiaries. If they won't take the money it is still theirs and I would imagine you have an obligation to invest it on some manner or other ( deposit account ).
Jeremy-75qq8 said:
paulguitar said:
They are disappointed beneficiaries.
Dan has no idea why, having agreed to the distribution legally, they are now refusing to take their shares.
So in essence they are not accepting the money as it deems acceptance?Dan has no idea why, having agreed to the distribution legally, they are now refusing to take their shares.
Which also suggests a legal challenge coming down the road ? If not why not just take what is offered ?
I am involved with a few trusts as trustee - fortunately with no issues. However I do have to act in the best interests of the beneficiaries. If they won't take the money it is still theirs and I would imagine you have an obligation to invest it on some manner or other ( deposit account ).
Dan says the executor account he has been obliged to open pays no interest. So the behaviour of the disgruntled trustees is seemingly illogical as they know that. But, as you suggest, perhaps they think taking their share indicates acceptance.
paulguitar said:
Dan has no idea why, having agreed to the distribution legally, they are now refusing to take their shares.
Are they slightly paranoid types who saw a letter from someone asking for their bank details and thought it was a scam? But that goes back to 'Why not send them a cheque', which they might understand.Rather than the spare money rotting in an account on 0% interest for ever, or simply going to charity, can the other beneficiaries accept it instead?
Gassing Station | Speed, Plod & the Law | Top of Page | What's New | My Stuff