Hi Lynn

It's difficult to comment without more information.

Could you confirm if the sale paid off a mortgage and the £1500 was a that was left.

Mark

Hi Mark,
Yes the flat sale was £40000 and the outstanding mortgage was roughly £38500.

Lynn

Hi Lynn

If the flat was sold at value, then the trustee is entitled to the net proceeds and nothing more.

Ask the trustee why they failed to renew the inhibition, as this would have alerted him to the sale. If it was me, I would ask for the other £6k back

Mark

Hi Lynn.

Are there any funds in the estate in addition to the equity from the home?

Hi Mark,
The problem isn't so much that they are claiming £6000 too much, it is more worrying to me that they have suddenly nearly a year after my sisters death claimed that her estate owes £28000 but have produced no accounts to show why this money is owed. There has been no mention of this money being due to be paid in all the correspondence I have had with them concerning the equity in the flat.

There is her superannuation pension, 2 years salary from her employer plus her last months salary in addition to the equity in the house.

Thank you Lynn.

Hopefully Mark or one of our other experts can soon explain whether that changes the situation.

I think firstly the Trustee would need to clarify the amount, the break up of the amount and the reason he feels entitled to it before doing anything. I don't see picking a large number and demanding it as the way forward.

It may all hinge on who is entitled to the superannuation (pension) etc. In normal circumstances, this would fall to the spouse and fall outwith the trustee unless the spouse was also in a trust ded, then it would be looked on as acquirenda. If it does not fall to the spouse, then I think the Trustee of the scheme nominates the beneficiary.

I think you need to get absolute clarification on what exactly he is demanding.

Mark

Hi Mark,

Reading between the lines, I think you're saying that the devil may be in the detail here?

If that's the case would it be worthwhile for the executor (Lynn) to get specific legal advice in relation to each of the elements that have gone to make up the estate?

Thank you for all your advice. I will contact her employer and check who the actual beneficiaries are. I suspect it will be my mother who is 76 years old. Would this affect the amount the Trustee can legally claim back ?

It might do Lynn - but it depends on where the trustee is getting their figure of £28000 in the first place. As Mark says, you really need to ask them for a breakdown to see how they are working this out.

It's incredible ( or maybe not!) thay a firm would demand a figure at this level, yet produce no breakdown or justification as to why the sum should be paid.

Mark

I am the trustee of my late sister's estate and the problems with her trustee are ongoing. They are now stating that interest has been accrued from the beginning of her trust deed up until now of 8% per annum, and this is due on top of the £5000 charged for sequestration, and also that all her creditors have been paid 100% but that the trustee also intends to pay them interest and dividends. Please bear in mind that my sister paid this trust deed for 8 years and only had 3 payments left to make. Are they allowed to do this as my lawyer states that she knows nothing about trust deeds.

Lynn, have you spoken to your sister's trustee and asked them to explain what's going on?

When you first posted, it sounded as if the trustee was asking you for more money from your sister's estate.

However, from your most recent post, you may actually be talking about the trustee's accounts - which is basically a summary of the money which has come into the trust deed, and the amount which is to be paid out to creditors (dividend of 100p in the pound, plus 8% interest from the start of the trust deed) and the trustee's fees and outlays (maybe the '5,000 charged for sequestration'?).

A quick call to the trustee's office should let you know whether the paperwork is 'for information only', or if it is a demand for further money.

I very much hope that it's the former.