Executor delegating financial responsibilities

[des8]

Re: Executor delegating financial responsibilities

Thanks for all your replies, some very interesting , however the money is safe in that respect so unfortunately I won't be selling the film rights.

Des8 - thanks for the answer on delegation. However, does this still apply if the delegated person is one of the beneficiaries and has access to the money in the estate? I would think that a delegated person should not be personally connected in this way?

The only restriction on beneficiaries and executors is that they cannot be witnesses to the will.
IMO there is no legal reason why the executor cannot delegate functions to a beneficiary.
It might however be considered unwise for various reasons eg if the delegate runs off with the money the executor could have to make good the losses, or it may cause eyebrows to be raised and questions asked.
As has often been noted on this site there is nothing like a death and a will to cause family rifts, which is really rather sad.

[Johnboy007]

Re: Executor delegating financial responsibilities

The only restriction on beneficiaries and executors is that they cannot be witnesses to the will.
IMO there is no legal reason why the executor cannot delegate functions to a beneficiary.
It might however be considered unwise for various reasons eg if the delegate runs off with the money the executor could have to make good the losses, or it may cause eyebrows to be raised and questions asked.
As has often been noted on this site there is nothing like a death and a will to cause family rifts, which is really rather sad.

Des,
There is a legal reason why no-one other than the executor, can distribute any money.
His legal duty is to distribute the estate.
If the money is in someone else's bank account, especially if it is in another country.
Then the Executor has no control whatever over the money.
He therefore cannot Take all proper steps to protect the assets of the deceased
Neither can he distribute the estate.
He cannot delegate his legal responsibilities my friend.
Neither should he pass the buck of responsibility.

[des8]

Re: Executor delegating financial responsibilities

Still disagreeing with you John

Executors can delegate all their functions [trustee act 2000 part iv, 11. (2) (a) & (b)]
This does not relieve them of their legal responsibilities and if their agent fouls up, the executor is the one in the dooda.

[des8]

Re: Executor delegating financial responsibilities

[QUOTE=Johnboy007;459839
This is from the probate department...

Noted that this is a private company, not even a solicitor, so I would not accept their advice without checking further.

[MissFM]

Re: Executor delegating financial responsibilities

I don't believe there to be anything either unlawful or eccentric in "delegating" the administration of an estate to a professionally qualified person, nor does it seem unusual to me for an accountant to hold clients' funds.

My only anxiety here would be that the accountant is based outside the UK and may not be subject to UK regulations, but Blossom has said "the money is safe in that respect".

The executor is protecting himself (both from error and any imputation of unscrupulousness) by employing a professional, IMVHO. To me this seems both sensible and lawful.

The accountant must execute the will fairly, legally and according to the wishes of the deceased on behalf of the executor. He will need to provide detailed accounts of all his transactions - as said above, the buck stops with the executor but he has the added protection of the accountant's expertise and professional code of conduct.

The accountant is entitled to charge the estate for his services at his usual professional rates - I would imagine that as a beneficiary he would be at pains to avoid even the appearance of any wrongdoing in view of his professional status.

Just my opinion - HTH

[MissFM]

Re: Executor delegating financial responsibilities

It is not right that Executors may not be paid for their services.

People can and do appoint banks as executors who charge a % of the estate, solicitors are normally cheaper but will still charge their standard hourly rates.

The Succession Act 1965 is an Irish statute - are we talking about ROI?

Just as a wee footnote:

in the past almost everyone believed that they would be protecting their relatives and heirs by appointing a professional executor (solicitor, bank, accountant, etc.,)

Luckily, many have awoken to the fact that this is restrictive and expensive. Steven is correct that a professional executor will charge a percentage of the overall estate - however, they will also charge professional fees. This will often involve them charging top partner's whack for work that could have been done by a clerk at a tiny percentage of the partner's hourly rate.

So (again, IMO) - the wise legator will appoint a trusted executor from amongst the beneficiaries and it's therefore up to the executor to appoint professionals as & when needed - thus saving the bleed-out of funds to professionals at the expense of beneficiaries.

:tinysmile_kiss_t4: x

[Johnboy007]

Re: Executor delegating financial responsibilities

Still disagreeing with you John

Executors can delegate all their functions [trustee act 2000 part iv, 11. (2) (a) & (b)]
This does not relieve them of their legal responsibilities and if their agent fouls up, the executor is the one in the dooda.

I gotta disagree again Des
Renunciation

Renunciation is only an option where a nominated executor is cooperative, since he cannot be compelled to renounce. It is also only possible where an executor has not already intermeddled with the estate.
Where an executor is willing and able, however, for example where he simply wants nothing to do with the administration, he may renounce, effectively abandoning his right to a grant of probate (see AEA s.5(iii)). This allows the next entitled person (under NCPR r.20 – generally a residuary legatee), to take a grant.
The renunciation must be in writing, and whilst this can be done any time after a testator’s death, a renunciation generally accompanies an application for a grant by the person next entitled. Once made, a renunciation can be retracted but only with the leave of a district judge or registrar, and only in exceptional circumstances where probate has already been granted to someone else (NCPR r.37(3)).

[des8]

Re: Executor delegating financial responsibilities

renunciation ain't delegation:tinysmile_twink_t2:

[Johnboy007]

Re: Executor delegating financial responsibilities

renunciation ain't delegation:tinysmile_twink_t2:

I know, but he cannot delegate the role of executor.
Therefore renunciation of his duty is the only option if he doesn't want to carry out those duties.:tinysmile_twink_t2:

[des8]

Re: Executor delegating financial responsibilities

This is going nowhere:colbert:

[righty]

Re: Executor delegating financial responsibilities

Charging a % of the estate is now quite rare AND and handling an estate ain't as easy as some seem to think. Many layman start but soon seek out the help of a professional when they realize what can be involved

[Johnboy007]

Re: Executor delegating financial responsibilities

This is going nowhere:colbert:

I thought it was rather fun, and it does keep the old grey matter alive

[des8]

Re: Executor delegating financial responsibilities

My concern is that we , having given differing views, appear to the OP to be more concerned with bickering between ourselves than helping them.
This might not be true, but could be the perception.
If you want to continue the discussion perhaps a thread in another section of the forum would be more appropriate?

[Johnboy007]

Re: Executor delegating financial responsibilities

My concern is that we , having given differing views, appear to the OP to be more concerned with bickering between ourselves than helping them.
This might not be true, but could be the perception.
If you want to continue the discussion perhaps a thread in another section of the forum would be more appropriate?

Hi Des,
I wouldn't call constructive conversation, bickering.
Giving both sides of an interpretation on law, also gives the OP different aspects of the situation.
OP can then decide which course of action to take.

I don't think we need to start another thread, let's just agree to disagree in part.

[des8]

Re: Executor delegating financial responsibilities

OK