Estate asset or not

D

DeepSouth

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I am the Executor of an estate. A solicitor (who drew up the will) is handling the probate etc. Allocation of assets (a property and cash) was clearly defined in the will along with 2 Beneficiaries and should not present a problem to execute.

The deceased also setup a number of named accounts with State Savings and deposited small amounts of a period of 2 decades. Balances in the accounts are substantial. There are 4 accounts - one in the name of a single individual and the remaining 3 have 3 named individuals on each account. These individuals are not named Beneficiaries of the Estate.

The solicitor is insisting these accounts are part of the Estate and should be included in the overall cash for distribution to named Beneficiaries. I am of the opinion the cash in these accounts belongs to the people named on the accounts and should be excluded.

Would be interested to hear you opinion.
 
On the face of it, the balance standing to the credit of the accounts would appear to be the (joint) property of the individuals in whose name(s) the accounts were opened.

But it’s a very odd scenario.

Were the individuals aware that accounts were opened in their names? Was documentation provided for AML purposes?

If the amounts are significant, the account holders could be liable for gift tax, depending on their relationship with the deceased, etc.
 
The individuals were blissfully unaware the accounts existed and are now understandably laying claim to them.
 
Surely if the accounts were in their name or they were named beneficiaries then its theirs?
 
That was my view - unfortunately not the view of the Solicitor. As Executor I am concerned they will come after me unless they get their money.
None of the account holders are named as beneficiaries in the will - but are related (children of siblings of the deceased).
 
There have been high court cases on this matter, so tread carefully!

Legally joint accounts can be held as 'joint tenants' or 'tenants in common', which determines what happens when 1 holder dies.

With state savings, joint holders are 'joint owners', and on death of one person, their name is removed from the account, and other names remain.

Court cases usually centre around showing that the 'intent' of the deceased was different to the legal status, and families fall out.
 
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