Difficulties with co-executor of will

Feelingwideopen

Any help or advice you can give is really appreciated. I am having difficulties with my brother who is co-executor of my Grandfather’s estate. We are the only two executors.

My Grandfather gave me £20k to “look after” for him to pay bills etc should his health decline. He retained around £10k in other accounts and a property worth £150k as his only other assets. I made my brother aware of this.

I put the funds in an account in my own name. During a period of falling interest rates I then moved this money, in tact, through several other accounts with various providers in pursuit of the best rate. With one bank I held around 20 different “jam jars” in my own name. The funds moved in tact through some of these buy because all these accounts have since been closed I don’t know which ones. Foolishly I checked closing statements for reasonability and, being paranoid about ID theft, shredded them.

My Grandfather asked me to share around £5k of the money with other family member as a gift from him and also to pay some bills with some of it. There was also the occasional other request for small gifts.

Rather foolishly, I documented nothing.

My Grandfather’s health declined and I made arrangements to pay other bills such as care home and property related costs.

When he died around £10k of the original £20k remained.

When we set about winding the estate up, my brother took charge of practical things like house clearance and I called in the funds from my Grandfather’s bank and building society accounts. I added the proceeds to the remaining £10k in an account in my name because trying to open a proper executors’ account with any bank had proved impossible.

We obtained probate based on the assets in my Grandfather’s name at the date of death (not including the £10k that remained in my name).

After a number of delays, we have now started to distribute the funds to the half dozen beneficiaries named in the will. There is no dispute as to who is entitled to what.

My brother (not a solicitor) has now made a demand for an audit trail of the funds entrusted to me by my Grandfather for the 18 months or so prior to his death. My record keeping is virtually non-existent and while doubtless I can obtain copy statements I’m not sure that I can recall what every payment was for. I have left myself quite exposed to allegations of theft during this period. While my brother hasn’t made the allegation, this is clearly where things are heading.

From death onwards, every transaction is clearly documented.

I have argued that it is unnecessary to rebuild the audit trail prior to death as arrangements with my Grandfather were informal and I was merely acting in good faith on his behalf. But the demands to provide the information on the accounts in my name continue.

I can’t undo my foolishness in my failure to keep proper records and would strongly recommend to others that they don’t inadvertently put themselves in the position I now find myself in.

While I can make the request for copy statements etc to the banks involved next week, and I believe the costs can be picked up by the estate, I won’t be able to 100% explain every transaction. Poor records, imperfect memory and excessive movement of funds in pursuit of a better return being the main problems.

What can I do?

Is this audit trail prior to death necessary?

At the moment I wish I'd just claimed the money was a gift and pocketed it for myself instead of returning it to the estate.

(For information, there are several beneficiaries in the will and my brother will recieve a marginally larger amount than me, but not anything significant)

DVardysShadow

I have no idea on how to deal with this, but I think an important question which is very relevant here is was Grandfather in anyway less than fully mentally capable? Please post your view on this.

The other thing is to start right now with a list of things that you can remember you spent money on - and just keep going back to it as you remember things.

Feelingwideopen

His mind was deteriorating, but he was aware enough to know it. I don't think it had been medically diagnosed.

While he could "wander" from time to time, and his memory of 1930 was stronger than his memory of 2007, he was aware of what he was doing at the time.

There were many lucid conversations typically outnumbering the poorer quality ones.

dzug1

The audit trail is necessary to protect your brother about potential allegations that he misaccounted for the estate and let you have more than you were entitled to. He's possibly being paranoid but he's entitled to be.

As to what you can do - the best you can. Worst case is the £10k you can't account for comes out of your share of the estate. Best case is your partial reconstruction is acceptable.

swingaloo

What I dont understand is why the menot needed to be put in your name. If your grandfather was needing help with his bill paying surely it could have been done in a different way with you helping and the money staying in his name.

Am I missing something here.

Feelingwideopen

swingaloo wrote: »

What I dont understand is why the menot needed to be put in your name. If your grandfather was needing help with his bill paying surely it could have been done in a different way with you helping and the money staying in his name.

Am I missing something here.

Convenience. Nothing more. The benefit of hindsight suggests it should have been done by POA or Court of Protection or perhaps joint account. In truth it was a lot easier (at the time) doing things this way.

The audit trail is necessary to protect your brother about potential allegations that he misaccounted for the estate and let you have more than you were entitled to. He's possibly being paranoid but he's entitled to be.

As to what you can do - the best you can. Worst case is the £10k you can't account for comes out of your share of the estate. Best case is your partial reconstruction is acceptable.

Cheered me up no end . I can see where my brother is coming from (although I don't like it).

Given that these funds were move prior to death, is the audit trail that important?

Jinx

Given that these funds were move prior to death, is the audit trail that important?

Yes, because its money that would have been in the estate naturally if it was in grandads account so no doubts over amounts. Now the remainder forms part of the estate and the amount spent needs to be accounted for (especially where there are numerous parties to split the cash.)

Hindsight is an amazing thing I agree, I think you will need to try and account for the spends.... If any solicitors are involved I think they will def want to know how the cash was spent to rule out any theft or wrongdoing. (Im not accusing you btw, just looking from an outsiders perspective and I hear a lot of stories as have a relative who divides estates.)

Sorry you have lost your Grandad, sounds like you were very close.