Beneficiary of Will wanting her share before Inheritance Tax has been paid

[Titan77]

I am executor of my father's estate and Grant of Probate has not yet been issued nor Inheritance Tax paid. My sister is a beneficiary and wants her share now to buy a flat. I have told her that it is not possible at the moment as all liquid assets will be used to pay IHT and there will be no more money until our father's house is sold. She seems now to be taking legal action and I have received a letter from her solicitor saying that she is entitled to pursue a claim against the estate for 'reasonable financial provision under section 1(1)(c) of the Inheritance (Provision for Family and Dependants) Act 1975 as a child of the deceased. She has not be financially dependent upon my father and indeed has had no contact with him for many years. She will be receiving 20% of my father's considerable estate, the same as me, the only other sibling. She now says she doesn't understand why the solicitor sent this letter as she just wants her money quickly. Can anyone make sense of what is going on? I would appreciate any help or advice.

[SeaJayPea]

I think she can want all she likes, but you don't have to pay her out until all is settled. What you might suggest to her is that she could take out a bridging loan backed by the fact that she will be getting a large payout once the estate is settled. Realistically these days that won't cost her a huge amount if it's dealt with in, say six months. Most banks would do that provided you are able to prove the value of the estate and show them the will.

Families. Don't you just love them?

[venator]

As the estate is not fully valued yet, it would be improper to advance anything.

You could offer to buy her out at an agreed figure, of course, but that could cause more trouble...

[Barmaid]

She's scored a spectacular own goal here. An executor should not distribute until 6 months after the Grant of Probate in case of a claim under the Inheritance (PfFD) Act. The fact that you now know there is a claim means that a distribution is singularly unlikely now until this "claim" is sorted out.

[dzug2]

I wonder if her solicitor has either totally misunderstood what she has told him or is just trying it on to make you panic and pay out - or maybe even planning a (almost certainly unsuccessful) claim for more than 20% in the long run.

[factor-fiction]

I agree 100% with the others. Let her waste money on a solicitor if she wants.

[Titan77]

Thank you all so much for taking time to reply - especially over Christmas! I have had a stressful time over the last few days as my sister is being particularly vague and will not give me a straight answer about anything. She says she has not given her solicitor a copy of the Will which I sent her. I can only assume that she deliberately did not give him the Will - (I am sure that is the first thing any solicitor would ask for). The solicitor is now asking me to supply a copy of the Will, value of the estate, assurance that no funds will be distributed until the claim is sorted out, and the address of the solicitor who dealt with the making of the Will all within 14 days which will be difficult with my solicitor being out of the office until the New Year. I am told I will have to pay my sister's legal expenses if I do not comply and as the 'defendant' should take independent legal advice. She, however, is receiving public funding (investigative only at the moment) so has little to lose. I am trying to get her to stop all this as it will slow down distribution of funds costing the estate a lot of money and we will all get a lower amount, including her. What would be the chances of a solicitor taking this any further, especially when she will receive a very substantial sum already?

[dzug2]

Who is getting the other 60%? They may wish to take an interest.

I would send the solicitor a photocopy of the will (I assume you have one?), tell him the rough value of the estate, that probate has not been obtained and that you understand no payment can be made until 6 months after probate.

If you don't have all those details just send him a holding reply saying your solicitor who has the details is away and that they will be provided on his return.

If this is a vexacious claim (and it sounds like it is) then your sister can be ordered to pay all costs out of her share of the estate

The solicitor may be looking more to his fee than anything - he wins regardless of the merits of the claim

[Titan77]

Thank you dzug2. My two grown up children are getting 22% each, my father's friend 10% and a charity the remaining 6%. Obviously my two children are aware of the situation. I will write to the solicitor as you suggested and it is interesting that she could be forced to pay all legal costs from her share. I had thought that the solicitor might just take the case on to get the work and the fee - I presume that is what you mean. Thank you for your advice.

[themas]

I find it difficult to believe her solicitor wrote you the letter if he knew what she was entitled to under the will. Hopefully, when you send him a copy of the will he will advise your sister to withdraw the claim. If he doesn't, you should ask him on what grounds he considers the claim should proceed, given that your sister will get the same % as you & had no contact with your father for many years.

[boxtops]

If I were you I would let your own solicitor deal with such correspondence - you can do without all this hassle at a time like this.

[buildersmate]

There's absolutely no suggestion in the above that the OP has engaged his own solicitor. Nor should he need to engage one - that's why he came here - to seek advice and to avoid spending money on legal costs.

[Craftypig]

Where there's a will...There's a family at war....

[factor-fiction]

Hi buildersmate- The OP does make reference to his/her own solicitor at one point , although it isn't clear in what capacity, if any, he is currently acting. The relevant sentence is:

"The solicitor is now asking me to..... which will be difficult with my solicitor being out of the office until the New Year. "

Titan77- if there has been a simple misunderstanding between your sister and her solicitor then it may be in your sister's interests to go back and clarify things with the solicitor. However, I think the solicitor is just 'trying it on'.

I think you might get away with just ignoring the letter but for peace of mind I would respond, although I'd make the solicitor work hard. For example i'd just point out that the estate is going through probate etc but if he writes back in 6 months you may have more information on timescales regarding the distribution of your sister's 20%. You could also point out that at this stage there is no certainty there will be anything left to distribute.

It's up to you whether you release a copy of the will but I don't think you are obliged to do so- I think i would simply say it will be available for him to inspect at the probate office in due course.

[Deadhelpfuladvic]

Hi

There are companies that sepcialise in executor lendning against the Probate property enabling benifiaciaries to to recieve thier money quickly.

This could help: http://www.executorse...ured-executor-lending

Hope it does!

[Deadhelpfuladvic]

There are some companies that provide loans to executors to enable benificiaries who want their entitlement early against the probate property. Try here : http://www.executorse...ured-executor-lending

Hope it helps!