Timing for distribution of legacies (Administration of estates)- FS

Question 1

What is the “executor’s year”?

Answer 1

The period of one year from the date of death during which personal representatives are not obligated to distribute legacies.

Question 2

Devastavit

Answer 2

A breach of duty by personal representatives, usually through mismanagement or wrongful distribution of estate assets.

Question 2

When can a beneficiary claim interest on a delayed legacy?

Answer 2

If distribution occurs after the executor’s year, interest is payable either at:

• The rate specified in the will, or
• The court-set interest rate for money paid into court (if no rate is provided).

Question 3

Is a personal representative in breach for not distributing a legacy within nine months?

Answer 3

No. Under the executor’s year rule, the personal representative is not in breach until after 12 months from the testator’s death.

Question 4

What are the three exceptions where interest on a legacy is payable from the date of death (not after one year)?

Answer 4

1. Where the legacy satisfies a debt owed by the deceased.
2. Where the legacy is charged on land.
3. Where the legacy is for the maintenance of minor children.

Question 5

What happens if executors delay payment beyond one year?

Answer 5

The beneficiary is entitled to interest on the legacy as compensation for the delay.

Question 6

Does the executor owe a duty to follow a beneficiary’s demand to pay a legacy within the executor’s year?

Answer 6

No. The executor is not obligated to pay legacies until after one year and is not in breach for refusing such a demand.

Question 7

Are executors liable for interest on unpaid debts of the deceased from the date of death?

Answer 7

Yes, for example, interest is payable on debts like utility bills or council tax, starting from the date of death.

Question 8

If Alexa dies and leaves £50,000 to her son, can he sue the executor 9 months later for non-payment?

Answer 8

No. The executor has one full year under Section 44 AEA before being required to pay, so no breach or negligence occurs.

Question 9

What legal protection does Section 44 of the Administration of Estates Act 1925 provide to executors?

Answer 9

It protects executors from being held liable for not distributing legacies within the first year after death.