Executor/Beneficiary - advice needed regarding reimbursement to Social Welfare on Aunt's Estate

[FarmerSmith]

Hi all,

I'm wondering if anyone might have come across a case like this before and how it turned out.

My Aunt passed away last May. I am the executor of the will and the only beneficiary. I appointed a solicitor to help apply for probate.

It turns out my Aunt had been claiming pension she wasn't entitled to and the social have applied to have this over-payment repaid. The amount to be repaid was more than was in her bank account. She also owned a plot of forestry so I was looking to sell this.

However, it's looking like that might not be completely straightforward as 2 agents have said access is a big problem (One even said, in his opinion, it was unsalable due to the access).

Where do I stand now?? I have enough cash to cover the over-payment (combined with the money in her bank account) but then I don't have enough to pay solicitor, accountant, valuer fee AND inheritance tax on an asset I can't sell.

Is there a time frame where the social will demand their re-payment? Can I just insist that the estate has to "deal with it" and not use my own money? What about fees for the solicitor etc in that situation?

 

[T McGibney]

You need to talk to your solicitor about this and start negotiating with the Dept of Social Protection if there isn't enough in her estate to cover their bill. There won't be any inheritance tax unless there's something to inherit. Every property is saleable if the price is set correctly.

 

[Salvadore]

The money owed to social welfare is owed from the estate. The reality is that you’re not really the sole beneficiary as you may have thought.

As executor you have a reasonable period to apply for probate and execute the will including settling her debts etc. This may mean selling some or all of her assets to cover her debt to SW. It may be possible to negotiate the amount owed.

If there isn’t enough to cover the debt, you wouldn’t be personally liable for the balance but it would mean of course that you wouldn’t benefit financially from the will.

 

[Ravima]

Talk to your solicitor and perhaps a tax advisor. It MIGHT be better for you to deal with Dept SW yourself, rather than have a professional do so. You can plead ignorance, the professional can't and if Dept see you have engaged professionals, they might not be as lenient with you!

Also, do NOT post too much on these boards, lest they be watching!!!