Beneficiaries and access to estate accounts

Beneficiaries and access to estate accounts

We have become aware that some Heir Hunters try to hide their own takings from beneficiaries.This is often when the Heir Hunter also has control of the administration of the estate. They do this by not giving the beneficiaries the estate accounts and by simply sending them their share of the inheritance. Hoping, one presumes, that the beneficiaries will be so grateful for the money that they will not ask awkward questions. Those pesky beneficiaries!

Co-op Legal Services have a useful article (13 March 2017) about the issue of beneficiaries seeing estate accounts. See https://www.co-oplegalservices.co.uk/media-centre/articles-jan-apr-2017/can-a-beneficiary-of-a-will-see-the-estate-accounts/

“Can a Beneficiary of a Will See the Estate Accounts?

“The only people who are entitled to see the Estate Accounts are the Residuary Beneficiaries, although there are some exceptions to this rule, which are explained below. This information applies in England & Wales.

“What are Estate Accounts?

“When someone dies, the Will states who is to benefit from the Estate. If a Will has not been left, the Rules of Intestacy will determine who is to benefit.

“The Executors named in the Will must administer the Estate in accordance with the terms of the Will. If there isn’t a legally valid Will in place, the Personal Representatives who are taking on the role must act in accordance with Intestacy Rules. When the Estate administration is complete, the Personal Representatives should produce a final document detailing the Estate’s Accounts.

“The Estate Accounts will show the final total of assets, liabilities, fees and administration expenses, and how the balance of the Estate has been distributed.

“Who is Entitled to See the Estate Accounts?

“The only people entitled to receive a copy of the Estate Accounts are the Residuary Beneficiaries. A Residuary Beneficiary is someone who is given the remainder of the Estate (known as the Residue) once all the funeral expenses*, debts, taxes and other gifts have been paid out.

“There are different types of gift that can be left in a Will. For example, a Pecuniary Legacy is when an individual is left a specific sum of money. If an individual is bequeathed a Pecuniary Legacy of £1,000 and he/she receives £1,000, he/she would then have no further rights as far as the Estate is concerned.

“But if an individual is to receive a share of the Estate after the specific bequests have been distributed, then the individual is a Residuary Beneficiary and would be entitled to receive a full account of all of the assets and how they have been distributed.

“Exceptions to the Rule

“There are some exceptions to this rule. The following also have a right to see the Estate Accounts:

• A beneficiary who is entitled to receive a legacy but their interest cannot be paid in full

• Beneficiaries and creditors whose interests/liabilities cannot be paid in full because the Estate is insolvent

• Parents or guardians of minor beneficiaries

“Estate Accounts should contain a complete record of all financial transactions during the administration of an Estate from the date of death through to its conclusion. They do not have to be provided until the Estate has been finalised.

“There is no specific rule as to the format of Estate Accounts but they would generally consist of a summary of the terms of the Will/Rules of Intestacy, a balance sheet, capital statement, income statement, securities (investments) schedule and a distribution statement.

“If a beneficiary who is entitled to see the Estate Accounts does not receive a copy from the Personal Representatives upon request once an Estate has been concluded, they may apply to the Probate Registry for an inventory and account order.”