Releasing estate monies to benefiiciary

[Law1]

2 beneficiaries to an estate. Beneficiary A is the executor and appointed administrator. Beneficiary B wants her share now even though administration not finalised and property not sold. Beneficiary A is willing to pay to beneficiary B her share out of his own pocket. An agreement is to be drawn up.

Is A allowed to pay B's share out of his own pocket and then deal with the estate after. B has to agree that the payment to her is in full and final settelement to any claims against the estate. is this allowed?

[dzug]

They can do anything that they can agree on, including totally disregarding the will.

[plowter]

Surely the executor has a legal duty to settle the estate before distributing any proceeds?

In E+W, it's only once the Probate Office has been satisfied that the executor has dealt with the debtors and creditors that the remains of the estate can be distributed.

See Essential Wills

[dzug]

Um no. The Probate Office plays no part after probate has been granted unless someone chooses to involve them.

In this case A is lending his own money to B to be repaid when the estate is settled. Nothing wrong in that - though maybe unwise if things don't turn out as calculated.

[plowter]

dzug, I thought that an executor had to ingather all the money owing to the estate, pay all outstanding debts and then go back to the Probate court to show them what had been done. Only then would they be given permission to distribute the remainder of the trustee's account to beneficiaries.

You're right that it's a private trasaction between two individuals one of whom is an executor. It does seem an unwise arrangement because beneficiary B can't know how much they're entitled to until debts have been paid and property sold.

[dzug]

Plowter - no, not in the UK. I've done it several times and have never had to go back to the Probate Office.

The site you have linked to is based in Hong Kong - it may well be a slightly different procedure there.

[plowter]

You're absolutely right, dzug. Sorry for any misleading info posted.

[Peter Pedant]

yes it looks as though we think you can

I bet B comes back for more tho'.

in short I think A can validly contract with B to buy out her interest in the will.
B's interest which I think can be traded is a time discount. IT may be worth her getting �500 tomorrow rather than �728.69 in dribs and drabs over two years.

I still bet B finds out how much she has lost and then whines around C D E F all family members telling the how unfair it has all been.

[Law1]

Many Thanks, I agree B is being unwise but A is desperate for the money. B better make sure the agreement is water tight!!