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    • NKR
    • By NKR 11th Jan 18, 6:44 PM
    • 9Posts
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    NKR
    co-executor refusing to transfer agreed money to his beneficiary daughter
    • #1
    • 11th Jan 18, 6:44 PM
    co-executor refusing to transfer agreed money to his beneficiary daughter 11th Jan 18 at 6:44 PM
    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.
Page 2
    • NKR
    • By NKR 5th Feb 18, 4:45 PM
    • 9 Posts
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    NKR
    to getmore4less
    Thanks for your helpful question.
    Here are thew reasons for me being confident that my Father intended the money to be given to the grandchildren.
    1) He set up 3 accounts with Alliance Trust in the full names of all 3 grandchildren.
    2) When he did this (15-20 years ago) he told me that this was his intention that the money would go to the grandchildren.
    3) More recently, about a year before he died, one of the grandchildren ("L"), was in the process of buying a flat. At that point, my Grandfather was delighted to help her by liquidating the unit trusts in the AT account in her name, and gifting the money to her. He told her at the time that it had always been his intention that she should receive the money.

    I do not know any details about how he set up the accounts with Alliance Trust, but there was never any "explicit" mention of as blind trust.
    Thanks
    • getmore4less
    • By getmore4less 5th Feb 18, 7:02 PM
    • 32,192 Posts
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    getmore4less
    The beneficial interest can be established to the grandchildren through actions, bare trust is one of the more common examples* of the type that can be created.

    Have a read on constructive trusts.

    If the accounts were nominee they were trusts anyway.

    It could be the money was never really part of the estate.

    Might give a new angle on trying to help the current shortchanged grandkid.


    * if you give someone money to go get/buy something(eg drinks at a bar) end expect the change then a bare trust is created, you retain the beneficial interest even though the person has the money.
    Last edited by getmore4less; 05-02-2018 at 7:39 PM.
    • jackyann
    • By jackyann 6th Feb 18, 9:46 AM
    • 3,335 Posts
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    jackyann
    NKR, I am confused. Previous posts imply:

    Your father set up accounts ( different uses of the word 'trust' seems to be confusing matters) in the names of each of his 3 grandchildren.
    He transferred all of this into his name at the point her gave 'L' her share.
    At his death, the money intended for 'T' & 'F' was in his name, bequeathed to his 2 sons, with the intention that they would pass it on.

    However post #21 implies (I think) that he only transferred 'L's money.

    Have you considered my suggestion of an informal approach to your brother, suggesting that his daughter has now matured sufficiently for him to re-consider? Or is there another family member who might be able to make that approach?
    • nom de plume
    • By nom de plume 6th Feb 18, 11:06 AM
    • 696 Posts
    • 646 Thanks
    nom de plume
    NKR, I am confused. Previous posts imply:

    Your father set up accounts ( different uses of the word 'trust' seems to be confusing matters) in the names of each of his 3 grandchildren.
    He transferred all of this into his name at the point her gave 'L' her share.
    At his death, the money intended for 'T' & 'F' was in his name, bequeathed to his 2 sons, with the intention that they would pass it on.

    However post #21 implies (I think) that he only transferred 'L's money.

    Have you considered my suggestion of an informal approach to your brother, suggesting that his daughter has now matured sufficiently for him to re-consider? Or is there another family member who might be able to make that approach?
    Originally posted by jackyann
    I'm equally confused.

    I read it as there were originally 3 accounts (1 in the name of each grandchild). One got used for house purchase but the other 2 were still in existence at the time of father's passing. Executors then transferred them to executors' account and then subsequently the brother transferred his daughter's entitlement to his own account and has since failed to then give her the funds. All the talk of 50:50 split of the residue has just served to muddy the waters.

    OP - Are the grandchildren mentioned in the will?
    • jackyann
    • By jackyann 6th Feb 18, 11:36 AM
    • 3,335 Posts
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    jackyann
    I don't think that the accounts intended for T & F could have been in their names at the time of grandfather's death, or they would have simply been handed over.
    OP has said they were not mentioned in the will.

    Although I don't think OP has been completely clear, I think his issues around the split, and therefore the money he can legitimately claim, are to do with his feeling of responsibility to his niece. She has not received the money that is morally hers, whereas her cousins have.
    • getmore4less
    • By getmore4less 6th Feb 18, 4:27 PM
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    getmore4less
    The first thing to do is establish the real beneficial ownership of those accounts, which may be different to the legal owner.
    • NKR
    • By NKR 9th Feb 18, 12:30 PM
    • 9 Posts
    • 0 Thanks
    NKR
    Let me try & answer some of the questions.
    I apologise if I have used the word "trust" confusingly, since the accounts were with "Alliance Trust Savings" (alliancetrust.co.uk). In future I'll refer to this simply as ATS. This is not a trust.
    As far as I know, the money in the 3 named accounts remained his. This is corroborated by the behaviour of ATS when during the probate/execution process, they treated all 4 account (3 grandchildren & his own) the same, and we transferred all to the Executor account. I think it is much like with Lloyds Bank, I have multiple accounts & can name them as I wish - eg "Holidays", "Car Account" etc.
    @jackyann - he only transferred "L"'s money, while he was alive, as she had an immediate need, buying a house. The other 2 were not yet at that stage, and so the money remained in the accounts until he died.
    Only my brother were named in the will as beneficiaries & co-executors.
    I have tried informal approaches to my brother, but these have been very rudely rebuffed, by my brother and his wife in what can only be described as a hysterical manner. It is clear that their intention is to use the money as leverage over their daughter, with whom they have a dysfunctional relationship.
    • unforeseen
    • By unforeseen 9th Feb 18, 1:09 PM
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    unforeseen
    If you have had the rest of your 50% then the only thing your brother owes you is 2500 being half the difference between what you took for your son and what he took for his daughter.

    As this was a 50/50 split with only wishes about the grandchildren's money then it is just a moral dilemma for your brother and nothing you can do to force him to abide by the wishes
    • NKR
    • By NKR 9th Feb 18, 4:46 PM
    • 9 Posts
    • 0 Thanks
    NKR
    @unforeseen - thanks. Would you suggest the best way for me to recover this is via a small claims court, since I have tried & failed to communicate with my brother? I have a copy of all the communication attempts.
    • unforeseen
    • By unforeseen 9th Feb 18, 5:01 PM
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    unforeseen
    TBH I don't really know the best way to tackle it. Compared to the rest of the legacy that you received is it worth a fight or just let it go?
    • NKR
    • By NKR 9th Feb 18, 5:08 PM
    • 9 Posts
    • 0 Thanks
    NKR
    I would gift the money to the niece. It would be a "start" on her inheritance. It is a point of principle, as I believe my brother has behaved in a reprehensible manner. Having recently move to London, she is facing some financial challenges (rental deposit etc), so this would make a material difference to her.
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