Is my money at risk ?

[Russ T Bolt]

Just been out to lunch and was listening to loads of doom and gloom on the radio.

Quick question for the Knowledgeable PH financial types.

I am executor to my late mothers estate.

The house has been sold but I am still trying to close everything else down, including dealing with HMRC.

There is a large amount of money currently sat in an account at one of the high street banks.

I'm not in a position to finalise the estate yet, but given the beneficiaries are all family members should I try and make a parcial payment to reduce the balance at risk and below the guarantee threshold ?

Sorry for the abruptness of the post, but I thought it would be easier just to deal with fact.

[Mermaid]

I don't think you will have an an issue provided the money is not sitting in some small building society.

As you will know, up to £85k is guaranteed with each financial institution (check definition) so you could split the money but you say a large amount of money..

[Rude-boy]

So long as you are sure that you have enough to cover any IHT and other debts of the estate there is nothing wrong with making and interim distribution.

[Russ T Bolt]

Thanks guys, I had thought the guarantee limit was 50k, but it's a fair bit above either cutoff.

I have got all debts I know of covered so could easily distribute interim amount, but my family would rather I settled the entire estate and paid it in lump sums as final settlement.

I was just concerned that if things went belly up I could lose most of it for them.

[Scooby72]

I am no expert but personally I would spread the money about a bit, just to be on the safe side.

I have a fairly large lump saved that will eventually be used as a deposit on a house, and I am quite worried about another financial meltdown.

Let's bear in mind that the root of the problems last time were debt levels of banks. The problem this time is debt levels of actual countries, which in my eyes is much bigger and much worse !!

I don't doubt that if banks started collapsing then you would get the money back, but if governments put the printing presses into overdrive what will that money actually be worth ??

[Beardy10]

Russ T Bolt said:

Thanks guys, I had thought the guarantee limit was 50k, but it's a fair bit above either cutoff.

I have got all debts I know of covered so could easily distribute interim amount, but my family would rather I settled the entire estate and paid it in lump sums as final settlement.

I was just concerned that if things went belly up I could lose most of it for them.

With due respect to your family you're the executor and I would say you should do what you think is right....if you know what the final estate is likely to be within say 10% I would distribute some of the money if you are nervous about it. You were probably chosen to be the executor as the deceased thought you were the best person for the job! Won't do any harm is the prudent thing to do......I would say being prudent is important! Obviously make sure you have all legal/professional fees covered etc.