Executor and P of A Query

Executor and P of A Query

Author
Discussion

valiant

10,066 posts

159 months

Sunday 26th January 2020
quotequote all
Sheepshanks said:
Robertj21a said:
Either there's a bit of that story missing or the bank has probably acted illegally.
Don't know about the law but certainly I've done this twice and the accounts were frozen the moment I told the bank. My mum owed the care home about £6K (she paid fortnightly by cheque and had been too ill to pay, and then in hospital for a few weeks). Bank wouldn't even consider allowing them to be paid.

In the other case the bank were even bouncing incoming payments.
Going through it at the moment and have dealt with many, many banks and building societies (thanks mum! Accounts bleeding everywhere!) and as soon as I told any of them, the accounts were locked down with no money in or out.

They were mostly all easy to deal with and they all have slightly different procedures and probate levels but all offered to release money for funeral costs only before accounts were officially closed.

MercedesClassic

Original Poster:

865 posts

96 months

Sunday 26th January 2020
quotequote all
Sheepshanks said:
Are social services involved at all?
Not sure what you mean, do you mean has she been visited to discuss her eligibility for benefits etc? If so then yes she has. Albeit in the past when she lived independent in a managed Fold. She'd be able to come and go as she pleased and looked after her own flat. She was one of the few that paid their own rent in it.

We enquired several times from different organisations, SS, Age Concern and CAB in her suitably etc. I think it was the charity who sent a lady out to fill in the forms. I was there to help with the answers as she was early stages of dementia. Although probably not diagnosed until much later.
Although at that time she was 85ish and mobile and had a bit of savings and modest pension so she wasn't eligible for anything.
She does now get her fees topped up in the home so at least that's something.

Sheepshanks

32,522 posts

118 months

Sunday 26th January 2020
quotequote all
MercedesClassic said:
She does now get her fees topped up in the home so at least that's something.

That’s what I was alluding to. You said earlier she was paying everything herself.

eliot

11,363 posts

253 months

Sunday 26th January 2020
quotequote all
Different banks will release different amounts. I was executor for my mum last year. Lloyds will release up to 50k on death cert alone. nationwide wouldn’t release anything without probate.

Basically:
Death
Post Mortem (maybe)
Death Cert
Funeral
Get the Will
Sort out Inheritance tax (online) and obtain a code
Apply for Probate - only once any IHT has been settled
Put notices in the gazette (protects you against claims)
Sell any assets
Distribute funds

I did it all myself online - got probate within 6 weeks of mum passing. This included paying to get the solicitor removed from the will because they had named themselves as joint executors which was effectively preventing me from applying for probate, that cost £350 (they wanted £1800 to do the whole simple estate)

Basically if things are simple with a will etc it’s pretty easy to do online.

MercedesClassic

Original Poster:

865 posts

96 months

Sunday 26th January 2020
quotequote all
Sheepshanks said:
MercedesClassic said:
She does now get her fees topped up in the home so at least that's something.

That’s what I was alluding to. You said earlier she was paying everything herself.
In my original post this morning I said that her income mostly covers her care. I later corrected that to say it's about half covered. However as the fees have been increasing above inflation much more than her pension has then her percentage contribution has probably decreased somewhat.
No idea what her fees are now but about 2750-3000 per month.
However her contribution is 100% of her monthly income.

It's been a busy few days.

MercedesClassic

Original Poster:

865 posts

96 months

Sunday 26th January 2020
quotequote all
eliot said:
Different banks will release different amounts. I was executor for my mum last year. Lloyds will release up to 50k on death cert alone. nationwide wouldn’t release anything without probate.

Basically:
Death
Post Mortem (maybe)
Death Cert
Funeral
Get the Will
Sort out Inheritance tax (online) and obtain a code
Apply for Probate - only once any IHT has been settled
Put notices in the gazette (protects you against claims)
Sell any assets
Distribute funds

I did it all myself online - got probate within 6 weeks of mum passing. This included paying to get the solicitor removed from the will because they had named themselves as joint executors which was effectively preventing me from applying for probate, that cost £350 (they wanted £1800 to do the whole simple estate)

Basically if things are simple with a will etc it’s pretty easy to do online.
Thanks for taking the time to detail this it's most useful and empowering to feel I don't need the time and cost of a solicitor for something straightforward.
As someone mentioned earlier about banks releasing funds it seems to be different in each. There won't be any IHT thankfully, paid plenty of that previously.
Death and taxes!
Cheers.

eliot

11,363 posts

253 months

Sunday 26th January 2020
quotequote all
The estate pays inheritance tax not the recipient. HMRC give you a code once they are cool tax wise - that code goes onto the application for probate.

brman

1,233 posts

108 months

Monday 27th January 2020
quotequote all
Robertj21a said:
Sheepshanks said:
Robertj21a said:
Either there's a bit of that story missing or the bank has probably acted illegally.
Don't know about the law but certainly I've done this twice and the accounts were frozen the moment I told the bank. My mum owed the care home about £6K (she paid fortnightly by cheque and had been too ill to pay, and then in hospital for a few weeks). Bank wouldn't even consider allowing them to be paid.

In the other case the bank were even bouncing incoming payments.
The bank acted correctly in both those situations.
Sorry, I was not clear- I did not identify my father or his account in that conversation so no, the bank did nothing illegal as they had not been formally informed of my fathers death. If I had done so I am sure the account would have been frozen then and there.
The point being that I wasn't pushed on the identity of my father and it was pretty clear to me the guy on the phone was not concerned I was taking a pragmatic rather than strictly by the rules approach.
This was my point really, you might want to take your time informing the bank as it is a pain the backside if the account is closed when there are still ligitimate outgoings that you have not had time to sort out.

MercedesClassic

Original Poster:

865 posts

96 months

Monday 27th January 2020
quotequote all
brman said:
Robertj21a said:
Sheepshanks said:
Robertj21a said:
Either there's a bit of that story missing or the bank has probably acted illegally.
Don't know about the law but certainly I've done this twice and the accounts were frozen the moment I told the bank. My mum owed the care home about £6K (she paid fortnightly by cheque and had been too ill to pay, and then in hospital for a few weeks). Bank wouldn't even consider allowing them to be paid.

In the other case the bank were even bouncing incoming payments.
The bank acted correctly in both those situations.
Sorry, I was not clear- I did not identify my father or his account in that conversation so no, the bank did nothing illegal as they had not been formally informed of my fathers death. If I had done so I am sure the account would have been frozen then and there.
The point being that I wasn't pushed on the identity of my father and it was pretty clear to me the guy on the phone was not concerned I was taking a pragmatic rather than strictly by the rules approach.
This was my point really, you might want to take your time informing the bank as it is a pain the backside if the account is closed when there are still ligitimate outgoings that you have not had time to sort out. [/quote

Thanks for your reply sir and sounds like common sense prevailed for a change. Your advice is appreciated.