"missing" money from estate

lewiskei

My mother died intestate in 2012 and had a significant amount of money in 2 bank accounts. As my father was not in good health, my brother applied, and was granted, Letters of Administration on my father's behalf. As far as I was aware, everything went through and was completed as normal, with everything passing to my father. In 2016 my father then died, also intestate, but my brother wants nothing to do with handling the estate so I have taken over and applied for LOA. Whilst clearing the house out I found the bank books of my mother which contained the significant amount of money. I also gained access to my father's bank account. I then found that my mother's significant amount of money was never paid into my father's account, it was instead paid directly into my brother's bank account. Now, knowing my brother, he will say that my father told him to keep the money which I cannot challenge as my father is obviously not here to confirm or deny that. My question is, with such a large sum of money does there have to be any written evidence/proof that my father DID actually say he can keep it, or is it just his word against mine?

Linton

Once your mother's estate had been processed estate accounts should have been produced showing the assets at time of death and what happened to them. This would provide some level of evidence. Who was the executor?

Is it likely that "a significant amount of money" could have passed from your mother's account to your brother's account without your father knowing or wandering what happened to it? I cant see it being your brother's word against yours as you would seem to be unable to claim any knowledge as to what happened.

If the money is significantly significant and was a gift from your father then it could affect the IHT position.

Keep_pedalling

As 7 years have not passed since your mother's death then this money still forms part of your father's estate, whether it was gifted or otherwise.

I would treat it as a dept owed to the estate, and unless your brother has proof that it was gifted then I would withhold this amount from him once you get to distribution.

This will be more complex if your mother's estate was over £250,000 as 50% of her estate over that value should have been split between yourself and your brother.

Jenniefour

Do you think your father would have let you know if he had given (or loaned) this money to your brother? Not that it makes that much difference but it might strengthen your hand a bit if handing out or lending large amounts of money to you or your brother was uncharacteristic of your father/parents without leaving a written record of it or telling the other sibling.

lewiskei

Linton wrote: »

Once your mother's estate had been processed estate accounts should have been produced showing the assets at time of death and what happened to them. This would provide some level of evidence. Who was the executor?

Is it likely that "a significant amount of money" could have passed from your mother's account to your brother's account without your father knowing or wandering what happened to it? I cant see it being your brother's word against yours as you would seem to be unable to claim any knowledge as to what happened.

If the money is significantly significant and was a gift from your father then it could affect the IHT position.

The executor was my brother but I didn't know this until after my dad died last year, and until I started doing the executor's job for his estate I knew nothing about things like accounts etc. I just assumed that my dad would notify the bank and they would just transfer the money. I haven't seen any accounts as I didn't realise there were supposed to be any until recently. My brother avoids me like the plague and will never answer any phone calls, text messages, voicemails etc. and as I live 100 miles away I can't just pop in to see him. So communication is non-existent at the moment.
Yes, it could well be that my father didn't know anything about it but again, I can neither prove nor disprove that.
It doesn't affect the IHT position as even with it included it falls below the threshold so thankfully that isn't an issue.

lewiskei

Keep_pedalling wrote: »

As 7 years have not passed since your mother's death then this money still forms part of your father's estate, whether it was gifted or otherwise.

I would treat it as a dept owed to the estate, and unless your brother has proof that it was gifted then I would withhold this amount from him once you get to distribution.

This will be more complex if your mother's estate was over £250,000 as 50% of her estate over that value should have been split between yourself and your brother.

That is exactly what I planned to do, then wait for him to challenge it (if he does). He doesn't actually know that I have discovered this discrepancy yet.
Her estate was less than £250k so that doesn't apply.

Yorkshireman99

Good for you! Let us know how you get on.