Distrust of Co-Executor plus Capital Gains Tax query

bingaling

Any guidance, advice and help would be greatly appreciated. My Father recently passed away leaving his estate 50/50 to my sister and I. He appointed my sisters husband and my husband to be executors of his will. My sister was POA due to Dad's physical decline (which I was OK with as my sister would only been able to act upon his instructions…. I hope..). Prior to Dad dying, he explained to me that his finances were quite complicated as he had stocks/shares/trusts and bonds and quite a few bank and saving accounts gained through his 85 years of life.

My problem is that since Dads death, my sister has been moving my Dad's money here and there and said she was paying this and that, this was all stated in phone calls. She also stated that Probate was not required. My husband, being executor, requested a spreadsheet of the estate from my sister. To say the least, she absolutely hit the roof. My husband is taking his responsibilities very seriously in honour of my Dad. When he stated to my sister that POA ended at date of death, and that he and her husband were responsible, again, another outburst. My husband spoke with the other executor and my husband requested that the two of them to open an executors bank account. This was carried out following a long list of obstructions from sister. From the cash assets (values not known by us), my sister, immediately wanted to pay out the cash bequests which happen to be for her children. My husband requested that no payments be made, apart from debts, until a reasonable amount of time had passed to ensure there was enough cash to pay debts before the bequests.

The joint executor bank account was eventually opened, which, my sister wanted closed immediately as she said it was not adequate and requested that we used her husbands bank account.

Through constant obstructions regarding the account (a basic bank account with no credit) and my husband responding to every obstruction proving that it was indeed adequate, they went ahead and obtained internet access. Once my sister had got into the internet account, she was finally satisfied that it was OK. However, the estate payments coming in are first going into my sisters husbands account, then, transferred into the joint account which I find questionable.

Due to my sisters behaviour and consequently the distrust arising from this, and numerous requests for the estate statement, my husband informed them that he would instruct a solicitor. Again my sister hit the roof and finally we received a spreadsheet with the assets and liabilities and payments she had made, together with a disclaimer that the values are not accurate at date of death and CAN NOT be used for any legal documentation. I understand that the liabilities and bonds/shares can not be accurate due to fluctuations.

Can she declare that the cash assets are accurate?

Moreover, whilst I consider that the values declared are true, I am not entirely satisfied that she has declared ALL of Dad's investments.

How do I find out if there are more investments of Dad's (not declared by her)?

My intention is that once she has considered that all debts and assets are confirmed and settled, that we request that she:

Changes the declaration on the spreadsheet
Provides us with all documentation to back up the values
Then, we employ a solicitor to ensure that all values are accurate
Will the solicitor be able to do this?
Will the solicitor be able to find any other assets in bonds/unit trusts/ bank accounts etc?
What would be the cost implications of a solicitor to carry out the above?

And finally, Dad transferred his house to my sister and I in 2007 (and remained alive for over 7 yrs from transfer). We will want to sell the property soon and regarding capital gains tax, I am aware that this will be due on the gain of the value of the property when transferred over to the value of sale. On the land registry document when transferred, there was not a value stated. My question is, how to I obtain a property value as at 2007 and what valuation documentation will HMRC accept as a bona fide valuation to enable the calculation of CGT.

Thank you to anyone that can be of assistance.

Yorkshireman99

It sounds like your sister is trying it on big time. The POA ceased upon death and if she has used it since and not told the banks of your father's death then that is fraud.or theft. The executors need to get a grip and prevent her meddling any more. Probate is almost certainly required. Employing a solicitor will cost but it comes out of the estate. Did your father live in the house after transferring it to you and your sister? If so the value of the house will form part of the estate as it is known as gift with reservation. If he paid you the full market rent then it would be excluded from the estate. A spreadsheet means nothing without the bank staements to back it up. Where are they?

bingaling

Thank you Yorkshireman99. Dad did indeed live in the house rent free until death. Since it is my sisters husband that is co-executor, she did notify the banks of Dads death and informed them that her husband was executor. She is using his ID to collect the money and use the internet bank accounts of dad...

bingaling

All bank statements together will all paper work relating to dad (death cert, birth cert) are all held by my sister at her home. Following a visit to her requesting paperwork etc and some other clarifications regarding what had been removed from Dad's home (high value items), she hit the roof and consequently has since barred us from her home....

Yorkshireman99

bingaling wrote: »

All bank statements together will all paper work relating to dad (death cert, birth cert) are all held by my sister at her home. Following a visit to her requesting paperwork etc and some other clarifications regarding what had been removed from Dad's home (high value items), she hit the roof and consequently has since barred us from her home....

In these circumstances you have to be hard hearted and strong minded. She needs to hand it all over to the executors. If I were executor I would notify the bank that she does not have authority to access the account online or in any other way. Maybe a solicitor's letter threatening an injunction might wake her up?

getmore4less

I would apply for probate anyway (with the other executor or not ).

Start make official enquiries to all the institutions for balances at date of death as executor(s) along with relevent information to do the tax returns(interest, dividends etc).
Might need both a death certificate and the will naming you as executor do the enquiries in writing.

You can create an inventory of assets and then go after any that are missing.

They most likely have got any assets under indemnity.

Any access after DOD the banks might take action or they may wipe their hands but you will have the data to make a case.


The house looks like a gift with reservations so needs to be included in the estate if it is. if that and the rest of the assets are over the nillrate band HMRC will be interested in seeing a capital return potentialy a full one IHT400 and the relevent pages.

Yorkshireman99

Sound advice. I would add that the banks will almost certainly have got an indemnity from your sister to release the funds. If it comes to it the estae may have to recover the money from the banks who will then recover it from your sister. It might be worth telling her this in writing to keep the pressure on her to start being sensible.

bingaling

Should it have been both the executors who should of signed the banks indemnity forms? If so, I think that my sister would of got her husband to sign these. She has never asked my husband, co-executor to sign anything.

Yorkshireman99

bingaling wrote: »

Should it have been both the executors who should of signed the banks indemnity forms? If so, I think that my sister would of got her husband to sign these. She has never asked my husband, co-executor to sign anything.

To release the money the bank would almost certainly have asked for an indemnity form signed by the person getting the money. From what is said on here banks seem to be very sloppy about releasing money to relatives of the deceased. I doubt she had lawful authority to deal with it. Whilst I appreciate the difficulties because of her husband being an executor he needs to act in the interests of the estate and not his wife. Perhaps the other executor needs to spell it out to him.

getmore4less

Any photographic evidence you may have of what was in the house could also come in handy.

bingaling

I have just learnt through my husband through sisters husband, that she has managed to get the bank to release £60,000 from one of Dad's bank accounts without probate however, she has instructed that my husband and hers to provide her with their ID, they have both signed the associated bank paper work (Friends Prov) and given it back to her for her to send off. I can not ascertain how she could of managed this large amount to be paid without Probate? Regarding the contents of the house, since I was very ill due to and following Dad's passing, she removed all items of value and I therefore have no proof. She can have those though, she has to live with her conscience and it is only the sentimental items that are important to me and she kindly left all the photos of Dad for me (she has no interest in those).