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NSW Waiting for Distribution of Deceased Estate Funds

Discussion in 'Wills and Estate Planning Law Forum' started by CarmelW, 5 March 2015.

  1. CarmelW

    CarmelW Member

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    My mother passed away 16 months ago. One beneficiary was living in Mum's house (due to not being able to rent a house for herself) at the time of Mum's death and has done everything within her power to delay the winding up of the deceased estate. Now that the house has finally been sold with settlement occurring 3 weeks ago, the solicitors are now saying that the funds cannot be distributed until they receive a Statutory Declaration confirming that beneficiaries have never been declared bankrupt from all 3 beneficiaries. The executor & myself have completed this declaration, however the other beneficiary is ignoring all correspondence from the solicitors. My question is can the solicitors legally refuse to distribute the funds to the beneficiaries who have attended to all correspondence promptly and have declared that they are not bankrupt until they receive the third declaration? It is my understanding that a beneficiary's bankruptcy status has no bearing on distributions to other beneficiaries.
     
  2. Tim W

    Tim W Lawyer

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    Could it have been a condition of the will
    that (one or some or all) beneficiaries
    only received distribution from the estate
    on the condition that they were not bankrupt at the time?
     
  3. CarmelW

    CarmelW Member

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    Hi Tim,
    There is no will.
     
  4. Tim W

    Tim W Lawyer

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    In which case, the matter is being dealt with as an intestacy,
    where there are Letters of Administration?
     
  5. CarmelW

    CarmelW Member

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    Hi Tim,
    The letters of administration have been done, the Administrator appointed, probate granted. The house has now been sold and all debts have been paid. We are now just waiting for distribution. The solicitors are saying that they do not do the distribution until they have received the signed declaration regarding bankruptcy from all 3 of us. Both the administrator (also a beneficiary) & I have signed and returned this declaration, it is only the other beneficiary refusing to do so.
     
  6. Tim W

    Tim W Lawyer

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    Could the other beneficiary be a bankrupt?
     
  7. CarmelW

    CarmelW Member

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    It is possible, but I am not certain if she is or isn't. I don't believe that she is bankrupt, I do think her biggest problem is Centrelink payments being affected
     

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