Executor in early stages

[ExecExec]

Hi There,

I'm executor of a small estate and while I have found some great advice in here I have some direct questions as this is new to me and I don not want to put a foot wrong.

1) There is a small sum in deceased bank account, which the bank will release on signature of indemnity. I am considering opening an Executor account to take these funds and administer estate from here eg pay utility bills, funeral expenses etc. Would this action negatively affect the probate process which will be needed to deal with the one property.

2) There is a small income form the deceased property in the form of a lodger. My intention is to lodge the rent into the executor account in order to cover the utilities in the short term.

3) The position with the mortgage is still unclear in that we do not know yet if the deceased had MP - but I am assuming that the mortgage will still need to be paid monthly? again from the new executor account. OR what are the likely options available from the bank regarding the mortgage. Its Pepper on behalf of RBOS and they are taking their time in getting back to me.

Any help appreciated.

 

[Thirsty]

1. Yes open an exec account; there are no disadvantages.

2. Don't forget you'll need to include the rent in the final return for taxes to revenue.

3. No you don't need to make mortgage payments; let Pepper know re deceased in writing and then leave it alone for now. Document *everything* with Pepper, do nothing on the phone. They are a shower to deal with.

4. collect all the deceased's paperwork and go through it with a fine tooth comb and see what you can find re insurance etc.,

 

[ExecExec]

Thanks Thirsty,

Re #2 the rent and revenue.

2. Don't forget you'll need to include the rent in the final return for taxes to revenue.

Does this refer to informing the Revenue Comms about the death and the balancing of the deceased tax affairs, or is it that the beneficiaries are liable to pay tax on the rent coming in?

3. No you don't need to make mortgage payments

Will the mortgage start to go into arrears or is frozen in some way pending probate etc.

 

[PMU]

3. No you don't need to make mortgage payments; let Pepper know re deceased in writing and then leave it alone for now.

Are you sure about this? AIB's bereavement guide states that “Interest will continue to be added to the mortgage account until the balance is cleared in full.” and BoI's that “Interest will continue to be charged on secured debts such as mortgages, and secured personal loans, until the debt is paid off in full.”. So you should write to the bereavement unit of the financial institution concerned and ask them is there a mortgage protection policy, or a life policy that has been assigned to the mortgage provider and what you should do concerning mortgage repayments.

Also, concerning the lodger, as he/she is now presumably in the house on their own, you need to write to the provider of the house insurance informing them of this as it almost certainly represents a material change to the conditions of the policy.

 

[Thirsty]

Yes I'm sure. Unless you are a joint mortage holder you won't be making mortgage payments.

As far as Ince is concerned they will be far happier that house is occupied.

all service providers should be notified by exec, enclose copy of death cert & extract from your certified copy of will appointing you as exec.

Re rent - its an income into the estate so the estate has to pay tax on it, before any distribution is done.

I'd be wary of leaving the lodger there any longer than 6 months; you don't want them acquiring a part 4 tenancy.