Hi, I wonder if someone can help me.

My Mum has very recently passed away suddenly, and

I've just come across a copy of her Will,

which names her bank as her executor.

She wasn't wealthy, with somewhere in the region of £20k in savings.

Having just read through the information she had kept on the Will,

it appears that the bank are going to make quite exhorbitant charges to act as Executor;

minimum charges, plus fees for every bill they sort out,

and more fees to transfer the residue of monies to beneficiaries, etc.

I am 100% certain that mum would not have understood quite how much of her meagre amount was going to be taken in charges.

By my calculations, once her bills are paid, and the funeral costs are taken care off,

there MAY be just enough to pay the minimum charges of the Bank!

My question is, can the appointment of Executor be challenged? And if so, how?

Thanking you in advance for your help.

1.to collect and get in the real and personal estate of the deceased and administer it according to law;

 

2.when required to do so by the court, exhibit on oath in the court a full inventory of the estate and when so required render an account of the administration of the estate to the court; and

 

3.when required to do so by the High Court, deliver up the grant of probate or administration to that court.”

 

On the death of the testator, all property vests in his executor, even before he has taken probate of the will. However, the executor should generally not act until a grant of probate is obtained because he or she does not have official authority until then. Once the executor or executors have proved the will of the testator, they are entitled to administer the estate and their duties include the following:

 

Make funeral arrangements.

 

Arrange immediate funds for survivors.

 

Prepare a complete list of all the deceased’s assets and liabilities as well as their value at the time of death.

 

Protect all the assets of the estate against theft, fire, loss and any other destruction.

 

Advertise for creditors to avoid becoming personally liable for future claims.

 

Prepare and file income tax returns on behalf of the deceased.

 

Before distributing the estate to the beneficiaries, pay all outstanding debts including funeral expenses, estate administration expenses and taxes.

Arrange for the distribution of the estate.

 

 

Keep complete and accurate accounting records as the executor is accountable to the beneficiaries for the assets of the deceased.

 

 

Is the bank going to be arranging the funeral ...

I believe you can challenge this, but will ask others on the site how you need to approach things.

Is there only one Executor, the Bank ?

Hi Citizen B.

We (myself and siblings) have already arranged the funeral, exactly as she would have wanted and as detailed in the copy of the Will that I have.

Yes, the Bank is the only executor. Mum would often get 'confused' and 'bullied' into financial things, on more than one occasion, I have had to sort ot something that she had got herself into. I do not believe that mum understood how much the Bank would be charging for dealing with her monies; she often said about the small amount she had being for her children. in her eyes, she would have probably thought the £75 paid to make the Will was what the Bank would be charging! Distribution of her chattels is very simple; she has left specific instructions on who gets what; there is no disharmony within the family, and it certainly won't be a hindrance to deal with it. You know what 'old' people are like; they trust the bank and authorities like it. :-s

Hello there. I'm very sorry to hear about the loss of your Mum.

Are the bank going to pay for the funeral? I ask because when I helped my father sort out the estate of his cousin, Lloyds Bank said that they would pay for funeral costs if they were invoiced by the funeral directors.

HB

Hi honeybee. We have arranged for the bill from the funeral directors to be sent to me. It's always been my belief that the funeral costs come out of the estate. I just thought that I was to pass the bill to the executors, ie, the bank, for payment, etc, but it would be taken from mum's monies. It was only when I started reading all about their charges that alarm bells started going off.

I have googled a little, and there is a lot of bad press about 'rip off banks' arranging Wills for a small fee, then making huge charges to act as executor, not necessarily explaining to the testator the total fees, which at a time when people like me are dealing with the grief of losing a much loved parent, having the added shock of bank charges.

Hi honeybee. We have arranged for the bill from the funeral directors to be sent to me. It's always been my belief that the funeral costs come out of the estate. I just thought that I was to pass the bill to the executors, ie, the bank, for payment, etc, but it would be taken from mum's monies. It was only when I started reading all about their charges that alarm bells started going off.

 

I have googled a little, and there is a lot of bad press about 'rip off banks' arranging Wills for a small fee, then making huge charges to act as executor, not necessarily explaining to the testator the total fees, which at a time when people like me are dealing with the grief of losing a much loved parent, having the added shock of bank charges.

I know, I've read the same stuff. The bank isn't neccesarily the best executor.

HB

If there isn't a big profit in it for them, they might be receptive to the idea of them renouncing their executorship.

Approach the bank's bereavement dept, and state that you don't think there will be a large estate, (especially if a house isn't involved), but there will be lots of debt's to deal with. That will put the idea in their mind that there will be lots of work for them to do. Suggest to them that they renounce their executorship. Once you have the signed renunciation, you can apply for probate yourself.

I'm quite disgusted with the bank. I'm firmly of the opinion that they have abused the trust mum had in 'her bank', and taken advantage. Given they knew what money she had, and knew what their minimum charges would be, they would've been able to do the maths and work out they were taking the majority of her money in fees.

I've read that I can ask them to consider 'stepping down' as executor, although I'm not sure they would. And the costs of contesting it would probably outstrip their fees!

Unless anyone knows better, it seems to be a hopeless situation. Poor Mum probably thought she was making it easier for us.

Sorry Crappoman, I hadn't seen your response before my last post. It is in my mind to request they renounce their executorship, just not sure what the response is likely to be. I can but try.

That's why I said to make it sound like lots of work for them.

I would ask them to step down. Don't be afraid to stand your ground if they refuse at first.

Some information for you..

From this link: http://www.lawpack.co.uk/probate/articles/article7435.asp

 

How to remove or substitute an executor by court order

 

Beneficiaries can apply for a court order to remove an executor by making a Part 8 Claim, under the Civil Procedure Rules 57.13.

 

The following documentation must be provided to support the application:

 

A certified sealed copy of the Grant of Probate (or Letters of Administration).

 

A Witness Statement outlining why the executor should be removed, along with details of the deceased’s assets and liabilities, names of the beneficiaries and the proposed name of the substitute executor.

 

The proposed executor’s signed consent to act.

 

A Witness Statement of the proposed executor’s fitness to do the role.

If proceedings regarding an inheritance dispute have already started, then the application to remove an executor must be made by an application notice and not by a Part 8 claim.

Asking an executor to stand down

Beneficiaries can ask a bank to stand down if fees are too high. HSBC used to be the only bank that did this, but others we asked said they could be flexible (Barclays also said it considers its charge after work has been done and will reduce it if appropriate). The banks do charge an admin fee – from £100 plus VAT at RBS/NatWest to £250 at Barclays.

 

http://www.which.co.uk/news/2010/02/which-calls-for-fairer-probate-fees-203914/

Thank you everyone, and apologies for not responding sooner, I've had no internet or wifi for a few days.

It seems that if you ask, you get with no objections! Maybe it's the bad press they've received, or the realisation that with no property, they won't be losing a fortune, but the bank have agreed to renounce being the executor.

Wow that's brilliant! Fair play to them.

Excellent news.

Well done flooz, and thank you for letting us know.

HB

Hope it helps others that have parents or similar that have been taken in by the banks.