Executor Withholding Money from the Estate

TonyTayless

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?

Brighty

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

You are going to have great difficulty proving that this was not a gift.

Brighty

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

TonyTayless

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

TonyTayless wrote: »

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.

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

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

TonyTayless wrote: »

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.

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.