Personal bank account - does it go to Estate or Spouse ?

[JayBirdUK]

Does a person’s personal bank account automatically go to the surviving spouse under survivorship law ? or would a “will trust” come into play ?

Basically the will states ……………………..

5.2 After the death of my husband my Trustees shall hold the Trust Fund for my daughter (ME) provided she survives me and my husband but if she shall have died before the death of such survivor of myself and my husband leaving a child or children living at the date of death of such survivor then such child or children (being a grandchild of mine) as shall attain the age of 18 years shall take by substitution and in equal shares if more than one the share of the Trust Fund that my said daughter would have taken had she attained a vested interest.

My mother recently passed and my stepfather was her executor and trustee just as she was his (mirror trust wills). It states her “chattels” pass to him but that is all. It states outside the jointly held property and money. The rest of her estate is then referred to in this trust.

However, my stepfather has had the money moved to what was their joint account (as her executor) and now views it as “his money”. I believe it forms part of her estate, is not automatically his, and should pass to me on his death as her named residual/trust beneficiary.

Your collective knowledge and input would be appreciated before I decide how best to handle this ?

PS I am sadly very aware than mum did not understand law and her intent of her part (50%) of the estate passing to me did not take into account joint ownership, something I feel my stepfather (and more especially his children) have taken advantage of after her death. I am also aware as his stepdaughter I now have no legal right to what was jointly held and it may be a case of keeping quite to not rock the boat. His new will splits everything 3 ways between me and his two children.

[atticus]

It states outside the jointly held property and money.

Please clarify this sentence.

[Pezza54]

Did your mother ever tell you had much money she had in her own personal bank account?
Was it your stepfather that told you he had transferred your mum's money into his own account?
If you are right and you are going to inherit one third of his estate, he has done the decent thing as he could have excluded you from his will.
Are you able to ask him what happens to your share if you predecease him. You may have children now or intend to have, that your mother want to benefit from her and your stepfather's estate.

[JayBirdUK]

Please clarify this sentence.

Apologies. Let me try that gain ...... It states her "chattels" pass to him but that is all. It then says the rest of her estate (her "real and personal property ") is meant to go into this trust. My understanding is that would include her personal bank account ?

There was approx £25K in mum's account from a medical compensation payout (she passed from asbestos induced lung cancer).

When they made the wills the property at the time was held as tenants in common and there was no real money in the joint bank account. This property was sold approx 2 years ago and mum told me that the new one was also purchased as tenants in common and dad confirmed this. It has turned out that was not the case and it was purchased as joint tenants hence it passing it its entirety to my stepfather. The joint bank account then held the proceeds of the sale of their 1st property and, as they had no mortgage, it was a fairly significant amount of freed up equity.

Mum was of the opinion that nothing had changed, Their wills still stood and, upon both of their deaths, the estate would be split as per the deed of attachment (I think that is what it is called) that specified a 6/14 share to mum and a 8/14 share to dad. This was then passed to my self and his children respectively. (I hope that makes sense ?) I know mum assumed my stepfather would honour this intent. Unfortunately new wills were not made to reflect the change in circumstances and how assets were held.

Within a month of her passing he had made a new will that splits everything 3 ways and he told me there was in effect nothing in her estate as everything, including her bank account, was now his.

As I said I am aware that legally it is his via survivorship of jointly held assets regardless of him being very aware of what mum's intent was. I am afraid I don't agree with devaluing mum's contribution from 43% to 33% but perhaps I should be grateful as he could cut me out completely, He has said that his new will states if I go before him then my 1/3 passes to my children. I may be cynical but, while his two children have seen the new will and are both his executors, he refuses to allow me to see and says I just have to wait until the reading. I have tried a couple of times to respectfully query this and also mums bank account but I get shut down with basically a "none of my business" attitude. As mum's executor he has not really done any of the requirements. I arranged and paid for her funeral and he has no intention of producing any form of final estate accounting.

So, it comes down the the £25K that was in her personal account that he has claimed. Can he do this ? I think this is the real bite for me on a personal level. In effect 2/3 of her medical compensation will pass to two people she had little if anything to do with rather than her child and grandchildren which again I know was her intent and wish.

Again thank you for your input

[atticus]

I agree that money in a bank account is not a chattel.

[Pezza54]

You have a difficult choice to make and it is not easy to advise.
Your stepfather, as executor, should have put your mum's £25k in trust for you as a future beneficiary. You could make a court claim against your stepfather for failing to follow your mum's will and ask the court to order that the money be put in trust. You should also argue in court that your stepfather should not be appointed trustee as he seems untrustworthy.
If you decide to make a court claim there is nothing to stop your stepfather making a new will and excluding you as a beneficiary. He has already threatened to do this. You only have his word that under his latest will you will inherit one third of his estate and he has decided not to name you as an executor..
Lastly, I don't understand why your mum decided to put her £25k in trust and not pass the money to you following her demise. If your stepfather lives to 100 how old could you be when you benefit from the trust money?
You should consult a solicitor that specialises in claims against executors.

[atticus]

I am seeing a lot of situations where so called will writers come up with unnecessary and overcomplicated trust arrangements which a competent solicitor would avoid.

[PallasAthena]

As mum's executor he has not really done any of the requirements. I arranged and paid for her funeral ...

Just a small point, but it is not part of an Executor's duties to arrange the funeral. However they are required to pay for it out of the Estate so you should have been reimbursed for what you paid.