Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • TonyTayless
    • By TonyTayless 14th Sep 17, 11:24 AM
    • 3Posts
    • 0Thanks
    TonyTayless
    Executor Withholding Money from the Estate
    • #1
    • 14th Sep 17, 11:24 AM
    Executor Withholding Money from the Estate 14th Sep 17 at 11:24 AM
    My brother is the Executor of my late mother’s estate. He has gathered together the monies in her bank accounts but is withholding 20000pounds that my mother had given him to hold onto before she passed away. There is no dispute that this is my mother’s money but he says that mum verbally told him that it was to be paid to his children if she died and he is now trying to pay out this money to his children outside of the will. There is a written will but it doesn’t mention anything about paying this money to his children. My opinion is that it should be returned to the estate and distributed according to the written will. Who is right?
Page 1
    • Brighty
    • By Brighty 14th Sep 17, 11:30 AM
    • 684 Posts
    • 346 Thanks
    Brighty
    • #2
    • 14th Sep 17, 11:30 AM
    • #2
    • 14th Sep 17, 11:30 AM
    As far as i know, If she gave it to him before she died, it's his to do with as he wishes or she wished. It doesn't form part of her estate for distribution purposes, but has to be included for IHT purposes if given less than 7 years before death.
    • Keep pedalling
    • By Keep pedalling 14th Sep 17, 11:31 AM
    • 3,575 Posts
    • 3,849 Thanks
    Keep pedalling
    • #3
    • 14th Sep 17, 11:31 AM
    • #3
    • 14th Sep 17, 11:31 AM
    You are going to have great difficulty proving that this was not a gift.
    • Brighty
    • By Brighty 14th Sep 17, 11:36 AM
    • 684 Posts
    • 346 Thanks
    Brighty
    • #4
    • 14th Sep 17, 11:36 AM
    • #4
    • 14th Sep 17, 11:36 AM
    Gifts before death can be challenged

    https://www.myerson.co.uk/personal/probate-and-inheritance-disputes/challenging-gifts-made-before-death/

    https://www.stephensons.co.uk/site/blog/consumer-law-blog/lifetime_gifts_declared_invalid

    But i suspect it's more of a money making exercise for solicitors and even if you won, you'd probably owe them more than your share of the £20k
    Last edited by Brighty; 14-09-2017 at 11:39 AM.
    • TonyTayless
    • By TonyTayless 15th Sep 17, 12:21 PM
    • 3 Posts
    • 0 Thanks
    TonyTayless
    • #5
    • 15th Sep 17, 12:21 PM
    Gift
    • #5
    • 15th Sep 17, 12:21 PM
    My brother said my mum told him it was to be paid to his kids if she died so it is not really a gift before death. She had given him the money to hold onto, she still 'owned' the money.
    • Keep pedalling
    • By Keep pedalling 15th Sep 17, 3:40 PM
    • 3,575 Posts
    • 3,849 Thanks
    Keep pedalling
    • #6
    • 15th Sep 17, 3:40 PM
    • #6
    • 15th Sep 17, 3:40 PM
    My brother said my mum told him it was to be paid to his kids if she died so it is not really a gift before death. She had given him the money to hold onto, she still 'owned' the money.
    Originally posted by TonyTayless
    I would take that to mean she gave him the money to hold on on for his kids not to be returned to her. What other possible reason would she just give him the money just "to hold on to" ?

    If you have your own children who are not benefiting in the same way I can understand your objection, but if that is not the case just let it go, unless you wand to get bogged down in a family dispute with some potentially very expensive legal costs attached.
    • TonyTayless
    • By TonyTayless 16th Sep 17, 8:28 AM
    • 3 Posts
    • 0 Thanks
    TonyTayless
    • #7
    • 16th Sep 17, 8:28 AM
    With holding
    • #7
    • 16th Sep 17, 8:28 AM
    She had originally given it to him to bank as she didn't want it in her bank account as she was due some kind DWP inspection. My brother admits that it was her money and the ownership was never given to him. After my mum died, he claims that later, after my mum had given him the money to bank, did she say that the money was to be given to his kids if she died but there is only his word for this and unfortunately he has a record of deceit. My arguement is that he as Executor should have returned the money to my mum's estate and the money distributed according to her written will which is the only independently witnessed record of her wishes.
    • Keep pedalling
    • By Keep pedalling 16th Sep 17, 8:43 AM
    • 3,575 Posts
    • 3,849 Thanks
    Keep pedalling
    • #8
    • 16th Sep 17, 8:43 AM
    • #8
    • 16th Sep 17, 8:43 AM
    She had originally given it to him to bank as she didn't want it in her bank account as she was due some kind DWP inspection. My brother admits that it was her money and the ownership was never given to him. After my mum died, he claims that later, after my mum had given him the money to bank, did she say that the money was to be given to his kids if she died but there is only his word for this and unfortunately he has a record of deceit. My arguement is that he as Executor should have returned the money to my mum's estate and the money distributed according to her written will which is the only independently witnessed record of her wishes.
    Originally posted by TonyTayless
    Sounds like deceit runs in the family if your mother was hiding money so she could fraudulently claim benefits.

    If your brother is claiming this as a gift it should be declared on the IHT forms as such, (assuming it was within 7 years of her death) otherwise as you say it should be returned to the estate for distribution, but in either case distribution is highly likely to need to be put on hold as the DWP will be trying to claw back overpayment of benefits.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

74Posts Today

3,202Users online

Martin's Twitter
  • RT @thismorning: 'Sometimes the best gift is releasing somebody else from the obligation of having to give to you' says @MartinSLewis. Do y?

  • Shana tova umetuka - a sweet Jewish New Year to all celebrating. I won't be online the rest of t'week, as I take the time to be with family

  • Dear Steve. Please note doing a poll to ask people's opinion does not in itself imply an opinion! https://t.co/UGvWlMURxy

  • Follow Martin