Probate - partial distribution

Jimi H wrote: »

Ok thanks. Would you know if the money can be distributed (after the grant) but before the house being sold? Thanks again

Yes.

I was the executor of the estate of an aunt of mine. She left an apartment to a member of the family who decided to rent it out so we did nothing with the deeds of the apartment but I distributed the cash (less funeral expenses) once I had the grant of probate.

3DataModem wrote: »

How did your family member insure the property, when you (as executor) remained the legal owner?

You can insure a property once you have a legal interest in it.

If someone dies and leaves you a specified property in their will, then if there isn't a current insurance policy in place, it would be highly advisable for you to insure it straight away, regardless of what stage the executor is at with probate. Because if the places burns down, it's your loss.

3DataModem wrote: »

Until a will is probated, you may not see the will. You've no title or insurable interest until it is probated (from what I know about insurance).

While probate is going on, you have no title but you do have an insurable interest.

When I signed the contract to buy my house, the closing was several months away but my solicitor told me that I now had an insurable interest in the place and should insure it.

3DataModem wrote: »

If the executor fails to insure the house and it burns down before probate, you can sue them for your loss (in the same way you can sue them if they delay sale of a house wilfully and it drops in value)

In 95% of cases, you would need to turf him out of his own house and make him homeless to get your redress. Throw in a spouse and children and you're well up the creek.

Open to correction, but I don't think it's correct to say that "a clearance certificate for the estate also has be acquired from Revenue before the estate can be distributed". The issue of the clearance certificate protects the executor; if he has a clearanace certificate and a tax liability emerges later but he can't pay it because he has distributed the assets the Revenue won't chase him personally for the estate's tax liability. Therefore an executor is highly likely to obtain the clearance certificate before distributing the assets and (provided he makes reasonable efforts to get the certificate) is unlikely to be found to have acted improperly in delaying the distribution until the certificate is given.

But he doesn't have to wait, and SFAIK he breaks no law if he distributes ahead of the certificate; he just creates a risk for himself. And with a large and varied estate it's possibel that an executor might make at least a partial, interim distribution in advance of the certificate, so long as he's comfortable that the assets he still retains will be more than enough to meet all conceivable tax liabilities. He is, of course, much more likely to be willing to do this if the deceased tax affairs were straightforward, fully compliant and fully up to date.

Fair point. 👍️