Can an executor withhold money from a beneficiary in the uk?
If you are a beneficiary of a Will and find that the executor is refusing to pay your legacy, it can be both frustrating and concerning. However, there are several steps you can take to deal with an executor who is witholding your money, and secure the inheritance you are entitled to. Here’s our guide on what to do if an executor refuses to pay a legacy:
Understanding the executor’s role and responsibilities
First, it is essential to understand who and what an executor is. An executor is a person appointed by the deceased in their Will to manage and distribute their estate according to the terms of their Will. The executor has a duty to act in the best interests of the estate and its beneficiaries. This includes paying off any debts and taxes, as well as distributing the estate’s assets in accordance with the Will. An executor should distribute the deceased’s estate within a reasonable time period; this is usually within a year of the deceased’s death and is commonly referred to as the ‘executor’s year’.
Sometimes, delays or non-payment occur due to legitimate reasons such as:
- Paying outstanding debts or liabilities of the deceased;
- Money and assets are to be held on trust for a beneficiary until they reach a certain age;
- In the event of a claim being brought against the estate;
- Inheritance tax needs to be paid on the estate.
Communicating with the executor
If an executor is refusing to pay a legacy or delaying payment for no good reason, the first step should be direct communication with them. Contact the executor and ask for an explanation. It may be that there are valid reasons for the delay or non-payment, such as the scenarios listed above.
Requesting an account
If the executor continues to refuse payment without providing a satisfactory explanation, you can request an account of the estate. An account is a detailed report of all the financial transactions carried out by the executor, including all assets and liabilities of the estate and distributions that have been made to date. Beneficiaries are entitled to this information to ensure the executor is managing the estate properly.
Legal action
If all else fails, and the executor continues to refuse to pay the legacy without justifiable cause, you may need to take legal action. Legal action can be taken to compel an executor to fulfil their duties, or to remove them from office if they have acted improperly. Because legal action is expensive and can reduce the estate’s assets, care must be taken to ensure that the steps taken are reasonable and proportionate. It is important to seek professional advice from experienced contentious probate solicitors when bringing a legal action against an executor.
How we can help
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