# Can executor pay out money to a beneficiary before probate is taken out?



## steady.eddy (28 Jan 2011)

Hi all,
My sister and myself are the executors of my late fathers will. One of the beneficiary's (my brother) owns his own house which has sprung a few nasty leaks on the roof and he does not have the money to carry out repairs. Is it possible for the executors to sell part of his share of stocks and shares (like an advance on some of his part of the estate) to help him finance the repairs? The probate has not started yet. The executors and beneficiary's (all siblings) get along very well and would have no problem with this.
Thanks
Steady Eddy


----------



## Padraigb (28 Jan 2011)

I take it that we are talking of a need for thousands, rather than hundreds, of euros.

If you tried to sell the shares you would have to sign the share transfer instrument. How would you sign it? It would be as "executor(s) of the will of xxx". Any sensible purchaser would ask you to prove your entitlement to act. That is what the Grant of Probate does for you; without it, the buyer would probably walk.

In your position, I would explore the possibility of the estate raising a loan from the bank where your late father did his business (because they would probably have a knowledge that there is value in the estate) and giving your brother an advance payment on his inheritance.

[And then hope that the shares hold their value - but that's another question.]


----------



## Brendan Burgess (31 Jan 2011)

I have edited the title of the thread to reflect the fundamental question being asked here.


----------



## Padraigb (31 Jan 2011)

The answer to the question as edited is yes, but there is risk involved. Before a will has been probated, the right of an executor is presumed rather than certain. There is a possibility that probate could be refused. Grounds for refusal might be discovery of another will of later date; a fundamental flaw in the drafting of the will; legal challenge to the will (e.g. on the basis of the testator's mental capacity at the time the will was made). If all parties who might have an interest are satisfied with the will, the risk might be considered minimal.

The executor should be prudent in making an early distribution, and not pay out more to any one person than he or she might finally be entitled to receive. Assets such as real property or shares might realise less than the value for probate.

The point I made in my earlier post stands: it can be difficult to realise assets before probate is granted. That is particularly true for larger value items.


----------



## dewdrop (31 Jan 2011)

As already stated it would not be possible to sell the shares until Probate is extracted then it is a matter of seeking a loan from the bank on an Executors account or in the personal name of the beneficiary but again as already pointed out there should be a good margin to cover any collapse in the price of the shares.  Personally i feel best route is a personal loan and an undertaking from the executor/solicitor to lodge sufficient funds in due course from sale of the shares on extraction of Probate.


----------



## Billo (31 Jan 2011)

steady.eddy said:


> Hi all,
> My sister and myself are the executors of my late fathers will. One of the beneficiary's (my brother) owns his own house which has sprung a few nasty leaks on the roof and he does not have the money to carry out repairs. Is it possible for the executors to sell part of his share of stocks and shares (like an advance on some of his part of the estate) to help him finance the repairs? The probate has not started yet. The executors and beneficiary's (all siblings) get along very well and would have no problem with this.
> Thanks
> Steady Eddy



Would the leaks not be covered by insurance ?


----------



## csirl (7 Feb 2011)

I dont think the estate should take out a loan to fund any individual beneficiaries needs - causes too many potential problems and paperwork issues.

Would be better for your brother to raise his own funds (loan?) and then pay it off when he receives his inheritance. Best thing you could do to help him would be to ensure that Probate is granted in a timely manner.


----------



## rockofages (9 Feb 2011)

Until probate is extracted nothing is certain. Your brother really should look at raising the money himself.


----------

