Solicitor and transferring money to beneficiaries abroad

Discussion in 'Wills, inheritances and gifts' started by adox, 8 Apr 2019.

  1. adox

    adox Frequent Poster

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    A bit of an odd one. I’m the joint executor of my late sisters will along with another sister.

    Long story short, there are four main beneficiaries, myself and the sister mentioned above, along with two other sisters, all receiving equal amounts.

    Myself and my (executor) sister have received our inheritance, paid by cheque to us. My other two sisters live abroad, one on the UK and one in Germany. The solicitor has insisted on issuing both cheques, despite them asking for the funds or be transferred electronically. Basically neither of them can lodge the cheques. Their respective banks have stopped accepting foreign cheques so we asked the solicitor again to transfer the money electronically which he said he would do.

    Tonight he has contacted me to inform me that they cannot transfer the money electronically and that they will issue a cheque to me as executor to distribute to the two beneficiaries abroad.

    Surely this can’t be right and is this day and age they should be able to transfer the funds electronically?

    I have replied refusing to accept the cheque and instructed them to distribute the money electronically.

    This can’t be normal practice can it? I was surprised that they issued me with a cheque for my portion of the inheritance in the first place, expecting it to be lodged into my bank.
     
  2. DeeKie

    DeeKie Frequent Poster

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    Old fashioned solicitor by the sounds of it. We issue funds by electronic transfer to clients all over the world. You cannot make him do it though - is it a bank charges reason maybe?
     
  3. adox

    adox Frequent Poster

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    Thanks DeeKie. I’ve no idea. Just got an email last night to say they weren’t in a position to make electronic transfers and that they were contacting both beneficiaries today to instruct them that they would be issuing me with a cheque to distribute to them.

    I’ve replied saying I do not want to do that and can they not organize electronic transfers.

    Will wait to see what they say but it does seem ridiculous that in this day and age their only option to isssue money is by cheque.

    If I do end up having to receive and distribute theses funds I presume there are no tax implications for me and don’t have to contact revenue etc as I be just carrying out my duties as executor and am not receiving any benefit from these particular funds?
     
  4. Gordon Gekko

    Gordon Gekko Frequent Poster

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    Zero tax implications for you
     
    adox likes this.
  5. adox

    adox Frequent Poster

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    Quick update. Solicitor has come back in writing and finally agreed to transfer the money to both beneficiaries.

    My rather blunt email last night must have helped the process.

    Thanks to all for their input.
     
    john luc and Annie51 like this.
  6. Vanessa

    Vanessa Frequent Poster

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    There is a tax liability for you if there is inheritance tax due by those overseas and its not paid
     
  7. adox

    adox Frequent Poster

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    Last edited: 11 Apr 2019
    Revenue had to be notified of both overseas beneficiaries and paperwork completed before funds could be released to them.

    The responsibility to pay inheritance tax is with the individual beneficiaries and not with the executors.

    Edit: Actually checking the figures again, the revenue insisted on the overseas beneficiaries making and paying their tax return before the monies were released, to be completed and paid by the solicitor from the funds so the inheritance they receive will already have the tax paid on it.
     
    Last edited: 11 Apr 2019
  8. jpd

    jpd Frequent Poster

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    If the beneficiaries are abroad, then the executor can be held liable,

    See here https://www.lawsociety.ie/globalassets/documents/committees/probate/adminestatebrochure.pdf
     
  9. adox

    adox Frequent Poster

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    Thanks for clarification. Not applicable to me thankfully.
    I edited my post to update the details. Taxes were paid before funds were released to the overseas beneficiaries.