Can Someone please have a look at a Will paragrapgh for me as I dont understand it the Exectors are Solicitors

Question

MY EXECUTORS shall have power to pay or apply any money liable to be invested and forming part of the estate or trust fund in the purchase of or in lending upon the security of any form of property whatsoever or wheresoever as if they / he/she were a single absolute owner thereof and whether or not the making of such payments or application amounts strictly to the investment of the money so paid or applied

I havent signed it yet im scared to.. I have three kids and im scared to sign it as I dont want them ripped off... Please help as the solicitir will proberbly still want paying.. is it a common clause or dodgy?

So do you guys believe its OK to sign this as a normal type cluase and there is nothing that I need to worry about as when I die my kids wont be able to come to me for help in the case the excutors are my solicitors

Answer 1

Hi Tony,

I shall translate.

It means the executors as trustees have the right to invest or loan funds, or rent land that come within the remit of a trust. A will may sometimes state that all or part of an estate will be held in trust for a person or persons named or to be named at a later date. This is where the trust bit comes in.

The trustee(s) must administer the estate in the best interest of the beneficiaries of the estate. If something goes wrong the trustees can be personally held liable for any losses.

There are different types of trust but the normal one is an express trust. There are trusts called secret and half secret trusts, you can have a resulting trust or a constructive trust. There is no need for me to explain what they all are, it would take too long.

They also have the power to pay disbersements (i.e bills or debts) against the estate. This is done before the beneficiaries of the will get their money or land etc.

I hope this clarifies the situation for you.

It is a standard paragraph. It just means they are going to pay off the outstanding bills and see that the remainder goes to where or whom it is supposed to go as per the wishes of the deceased.

Take care

Answer 2

It means the Executor can manage the property of the estate (including any trust that is part of the estate) without getting special permission of the Probate Court.

It looks scarier than it really is. As Executor and as a Solicitor, they do owe the estate (and hence the heirs) a fiduciary duty, so it's unlikely you're going to find them investing half of the estate into their daughter's lemonade stand. An interested party (an heir) could hire another lawyer to petition to Court to remove them as Executor, nullify any such loans/investments, and probably have their licenses revoked.

Look over their shoulders, but this isn't unusual.

Answer 3

This is a provision enabling your executors to invest the money of the estate as they see fit, without having to concern themselves with whether or not the investments fall within the "blue chip" criteria which normally govern investments by trustees, or seek special leave of the court to make new investments. In this way they can sometimes get a higher return upon the investments, all of which naturally have to remain within the estate and be accounted for.

Answer 4

Don't worry, Tony, this is a standard sort of clause which basically allows the executors to get on with things. As you probably know, while the executors are in the process of sorting matters out they will invest whatever monies they already have to hand, usually in an interest-bearing account, and this gives them the authority to do so. Quite normal lawyer-speak!

Answer 5

I'll try to help you break this down and then bring it all home in one big capstone summary.

Your ESTATE consists of all of your assets and all of your liabilities. Everything you own, and everything you owe on.

Your EXECUTORS are the individuals chosen to handle the paperwork and other legalities of the estate, as well as any disputes, once you are dead.

The SOLICITORS are people who are trying to collect on debts.

This paragraph essentially gives your chosen EXECUTOR (and you really should only have one and choose wisely, otherwise it's a huge headache for them) the authority to act as if they were you, in handling the paying of your debts. It allows them to place all of your funds in a trust account or any other investment and pay out to your creditors as necessary.

In short, this says they can put all of your money into an interest bearing account of any form while they handle the minor details involved in divvying it all up.

Answer 6

It means they can do whatever they want.

MY EXECUTORS have the power to purchase any form of property as if they were the owner (of the estate), whether or not the making of such payments strictly applied (to what they were told to do)

PS I have no legal training but this is what I read from it.

Answer 7

I'm in the U.S. but I believe the meaning is the same. The paragraph gives the executor or trustee absolute discretion to purchase any property from the estate assets or to pledge the estate assets as security for any purchase.

Answer 8

It means that when you expire, your solicitors are free to invest the monies from your estate, in property, for the benefit of the beneficiaries.

It is a common clause in many wills. If you were not sure of it's meaning why did you not query it before you signed? They would have explained it to you.