co-executor refusing to transfer agreed money to his beneficiary daughter

NKR · 11 January 2018 at 7:44PM

My brother and I were joint executors for my father's estate. Everything was left 50/50 to each of us, with the exception of money that he had put into named accounts with a Unit Trust provider, for his grandchildren. As executors, we had agreed that this money should be distributed to his daughter "T", and my son "F", and the remaining estate split between us. This was recorded in a spreadsheet that we had created to track everything. We also exchanged emails, of which I have a copy, in which he acknowledges transferring the money for "T" (about £12,000) from the account we had set up for my late father's estate, into his own account. We had agreed that he would send the money to his daughter, and me to my Son. I did this immediately, and my son acknowledged receipt of the funds by email to both of us.
About this time my brother discovered a previous boyfriend relationship that his daughter had had, of which he very strongly disapproved. This was the beginning of a rupture in their relationship. About a month after I'd transferred the money to my son, I asked if he had done the same to his daughter. He said he hadn't because he thought she was a spendthrift, and would just fritter the money away. I told him that this was irrelevant, and that he had a legal duty as executor to transfer the money to her. This was all in November 2014. Subsequently, my brother & I became estranged, and have not communicated. I have been in more regular contact with "T" over the last few months, providing some career guidance etc (she has no contact with her father), and it soon became apparent that she had not received the inheritance.
I have just sent emails to my brother asking that he carry out his duties as executor.
What recourse do I have if he refuses to transfer the money? It seems that he has committed probate fraud, but I would like a solution that avoids expensive litigation.

Margot123 · 11 January 2018 at 7:52PM

Seek professional legal advice for this. Most local solicitors offer a free 20 minute session in which you will be able to ask your options.

Keep_pedalling · 11 January 2018 at 8:55PM

If the unit trusts were written in trust to the grandchildren, they did not form part of your father’s estate and should have been paid directly to the beneficiaries unless they were minors at the time, in which case they should have been held in trust until they reached 18.

If on the other hand they weren’t and simply formed part of his estate then any reallocation should have been done through a deed of variation. If this is the case then your informal executors agreements means nothing, and he is under no obligation to give any share of his inheritance to his daughter, and your son’s “inheritance” as actually a gift from you.

Tom99 · 12 January 2018 at 3:04AM

Keep_pedalling wrote: »

If the unit trusts were written in trust to the grandchildren, they did not form part of your father’s estate and should have been paid directly to the beneficiaries unless they were minors at the time, in which case they should have been held in trust until they reached 18.

If on the other hand they weren’t and simply formed part of his estate then any reallocation should have been done through a deed of variation. If this is the case then your informal executors agreements means nothing, and he is under no obligation to give any share of his inheritance to his daughter, and your son’s “inheritance” as actually a gift from you.

I would think the OP is saying the amount in the Unit Trust was left to his grandchildren in his will.

Keep_pedalling · 12 January 2018 at 10:14AM

Tom99 wrote: »

I would think the OP is saying the amount in the Unit Trust was left to his grandchildren in his will.

I think you need to read the opening post again, the will was a simple 50/50 split.

jackyann · 12 January 2018 at 10:25AM

Tom99 wrote: »

I would think the OP is saying the amount in the Unit Trust was left to his grandchildren in his will.

I think that this is unclear. OP says that the amount in the Unit Trust was 'for his grandchildren' AND that the executors 'had agreed'. The fact that they transferred the money into their own accounts, with the intention of transferring it to T & F, indicates to me that this was an informal agreement, not stated in the will.

So OP, I think it all hinges on what the will actually said. If it does not specifically name T & F (or grandchildren) then it would appear to me that your bother has acted legally (if not morally).
If you have any proof of your father's wishes, then you may think it worthwhile seeking legal advice.
Even if you have no legal recourse, I would keep the paperwork and information that you have. Family feuds shift about a bit, and you may yet be able to persuade your brother to honour your father's wishes.

Can I, at a personal level, suggest you consider another approach to your brother? Saying something like that in the course of your discussions with your niece about her career, it seems that she is now mature enough to handle the money properly. That gives your brother a reason to hand over the money and save face.

Of course, if the will does name the grandchildren, then tell your brother you will be seeking legal advice.

Good luck

Tom99 · 12 January 2018 at 10:38AM

Keep_pedalling wrote: »

I think you need to read the opening post again, the will was a simple 50/50 split.

"with the exception of money that he had put into named accounts with a Unit Trust provider, for his grandchildren"

Jenniefour · 12 January 2018 at 12:07PM

Tom99 wrote: »

"with the exception of money that he had put into named accounts with a Unit Trust provider, for his grandchildren"

Perhaps OP will clarify. Keep pedalling has covered both possible scenarios neatly - either the accounts for the grandchildren were held in trust for them, didn't form part of the estate and should have been handed over to the grandchildren or it was an informal agreement between OP and his/her brother and discretionary. If it's the former then OP might want to get legal advice since he/she has a joint responsibility as co-executor to ensure the estate has been dealt with properly.

NKR · 4 February 2018 at 10:07PM

Hi
Thanks to all for replying. I apologise for the delay, I have been travelling. I have some follow up questions based on the advice received.
Indeed, the will stipulated that the the residual estate be split 50/50 between my brother and myself. According to the advice above, the decision to distribute the money in the named accounts was infact an informal agreement. If this is the case, then I have a follow up question. I see that there are 2 scenarios, and I would like to know best how to proceed.
Before that - some additional background. I have 2 children - a daughter "L" as well as son "F". During the lifetime of my father, "L" was in process of buying a flat, and my father willingly liquidated the contents of the AT account in her name, and gifted it to her to help in the purchase. (this also backs up the fact that he saw the money as destined for the named grandchildren). Also, because I had 2 children, to my brother's one, it had been agreed that the the only daughter, "T", on mt brother's side, would have a larger contribution, that each of my 2 children. The values weer approximately £7k for each of "L" & "F", and £12k for "T". It is this asymmetry that is at the heart of my next question.
I would like to know with which, if any, of the 2 scenarios I should proceed.
A) Assume that my distribution of £7k to my son "F" was done as an executor distribution, not forming part of the estate. My brother, by his actions (not distributing after > 3 years), has accepted that the 12k he transferred from the estate to his bank account was never intended to go to his daughter. In this case, he has received £12k more than I have from the estate, so I should be entitled to 50% of this. (I would plan to gift this to his daughter). In this scenario, he owes me £6k.

Assume that the £7k I transferred to my son, was in fact a distribution from the estate to me, and I chose to gift to my son. So I received £7k, my brother received £12k. To restore this to the 50/50 split mandated by the will, my brother should give me £2.5k (so we each receive £9.5k). Again, I would plan to gift to his daughter "T".

So, in either of these cases, my brother owes me money (£6k or £2.5k). What is the best way to recover this money? A small claims court?

Note, in reply to some of the other comments, I have tried a reasonable approach, I have proposed a close friend of my brother's as an intermediary, or informal arbitrator, only to be met by hysterical abuse from his wife.
Any guidance on the way forwards, and which (A ir

is the better path gratefully received.

Yorkshireman99 · 4 February 2018 at 10:23PM

You should have received what you were entitled to under the will i.e. 50% of the residuary estate. All the other transactions fall outside the estate. Probably a written letter before action send Signed For to your brother is realisticly the next step. The the Small Claim Court.

NKR · 4 February 2018 at 10:55PM

Thanks. Just to be clear, are you suggesting the amount in A or B?

co-executor refusing to transfer agreed money to his beneficiary daughter

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