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trustees have spent money on themselves

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  • trustees have spent money on themselves

    Is there any advice on a situation that has on going matter within our family, two members were made trustees of the estate via the will, two members stood back 4 children in all, 1child in the will was to be excluded and he had no children as the estate was getting past to the grandchildren. When the trustee found this out every insurance cheque that came from any policy had to split 50/50 as there were two trustees and they could not agree which debts to pay first on every occasion.
    The 1st trustee would not forward any monies to the second trustee saying it was his/hers as there was no children on there side and the cheque was in his/her name and no one else's.when pointed out the role of the trustee he/she upped and moved out the area.
    Now trustee 2 has spent the money too both leaving nothing for the kids is there anything you can do as I think its theft
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  • #2
    Re: trustees have spent money on themselves

    tricky this one, it depends on the wording of the will. who was the executor. If the other subjects of the will are under 18, then the court acts in there interest, i think the offical trustee ( MOJ ) is the way to deal with this, give there office a ring, but really its all about the wording of the will.
    crazy council ( as in local council,NELC ) as a member of the public, i don't get mad, i get even

    Comment


    • #3
      Re: trustees have spent money on themselves

      The executers and trustees are the same two people, there is a clause where if I or any sibling that is left, the amount if they die in her life time at the time of death a trust will be set up for the sibling until 18yrs old.
      There is one other main factor, that any monies left would be one equal shares absolutely for the 3 children to receive.

      But with both of the parties using the assets for there personal gain there is now an empty account.

      What makes it difficult to understand is when you ask how things are going with the estate and you get told in April 2014 we are still talking to creditors, then you do your own investigation's to find the bank account were all closed August 2013

      To be honest I think we were lucky in a way as one of the insurance companies when I phoned them offered to pay the funeral directors outright which I'm glad now we opted for and the balance sent to the account

      Is there legal matter on this or is it a brush under the carpet lesson learned

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      • #4
        Re: trustees have spent money on themselves

        Originally posted by expressman7 View Post
        The executers and trustees are the same two people, there is a clause where if I or any sibling that is left, the amount if they die in her life time at the time of death a trust will be set up for the sibling until 18yrs old.
        There is one other main factor, that any monies left would be one equal shares absolutely for the 3 children to receive.

        But with both of the parties using the assets for there personal gain there is now an empty account.

        What makes it difficult to understand is when you ask how things are going with the estate and you get told in April 2014 we are still talking to creditors, then you do your own investigation's to find the bank account were all closed August 2013

        To be honest I think we were lucky in a way as one of the insurance companies when I phoned them offered to pay the funeral directors outright which I'm glad now we opted for and the balance sent to the account

        Is there legal matter on this or is it a brush under the carpet lesson learned
        I think there is a legal matter on this and that, if the above says what I think it says, there is some very dodgy behaviour.

        I still can't quite grasp who is the executor and who the named beneficiaries?

        Please would you clarify in very simple terms

        - what are the terms of the will?

        - who are the beneficiaries?

        - who has been taking money

        etc..
        “Find a place inside where there's joy, and the joy will burn out the pain.” Joseph Campbell

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        • #5
          Re: trustees have spent money on themselves

          As a Beneficiary you can make a court application to substitute and remove a rogue Executor from office. The application to the Court is made under Section 50 of the Administration of Justice Act 1985.
          Before doing this advise the executor that you will be seeking a Costs Order against them. Costs of an application to remove an Executor can run to £10,000, or even more in some cases.
          This might bring them to their senses.

          IMO you though you should be seeking specialist advice and help from a solicitor.


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          • #6
            Re: trustees have spent money on themselves

            The will was from the last parent alive of four children of them 4 ,two were made executors as well as trustees of the estate,

            The will states after all bills paid any monies left should go to the named​ grandchildren within will via the 3 siblings named . But for a reason 1of the four siblings was excluded from the will for any monies but just goods from the estate were allocated to this sibling.

            This is where I say that it gets the first problem as the one left out was an executor and trustee so anything that went to that person they said it was there's.

            As I say there was 2 so there was money coming in to pay for costs and other items ,then there was money sitting in an account until one of the grandchildren came to say that the account was empty as the grandchild was asking how things were progressing.

            I have internet access to that account but was having trouble getting on so went to the bank to ask why , that's when I found that the 2nd executor/trustee had cleaned the account out and had even went overdrawn at one time. Which disgusted me even more.

            When I challenged the 2nd trustee as to why they had cleaned the account out there response was the other did so can I.

            Comment


            • #7
              Re: trustees have spent money on themselves

              I think, the court would have had to agree the exec, trustees upon death becuase some of the beneficurys were under 18. Its very hard to advise on wills without seeing it becuase the most innocuase statments can change things significantly.

              I think ( you would have to check )

              1. You make an application to the court to request a statement of account for the siblings
              2. If you or anyone connected to the case feels that the minors have mad a loss, you request the court put the siblings interest in the hands of the official trustee
              crazy council ( as in local council,NELC ) as a member of the public, i don't get mad, i get even

              Comment

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