Money spent by power of attorney/executor prior to death

[wales01man]

Re: Money spent by power of attorney/executor prior to death

Take the money
If this person misused or stole the money they may have been clever enough to cover it up very well they may well say they were given verbal permission to do whatever with the money very difficult to disprove would the Police and CPS spend a lot of time investigating it.
By all means contact the Police and ask for their Opinion on pursuing this

[des8]

Re: Money spent by power of attorney/executor prior to death

What "unwanted unexpected repercussions"

If we knew they would not be unexpected:tinysmile_twink_t2:, but situations like this which are taken to the next stage (police involvement?) can lead to irreparable divisions in families and between friends. One can't be sure how others will react and it pays to tread warily.

[Johnboy007]

Re: Money spent by power of attorney/executor prior to death

As beneficiary you are only entitled to see the final accounts of the estate from the date of death, until the executor signed them off as being completed according to the will.
So you would know what money was available, what expenses were paid, example, funeral costs, any taxes, debts and finally payments to the beneficiaries.
The executor is allowed to deduct any reasonable expenses from the estate, that he encountered in order to do his duty.

[Hopeful123]

Re: Money spent by power of attorney/executor prior to death

Thanks again all. I'm really not sure what to do at the moment. One further question though, in terms of the probate forms, should all spending by the power of attorney in the time that they had control of the accounts be included on the probate forms? As mentioned earlier, I've been informed that there is a shortfall of £80k in the accounts but have no written evidence of this. If my grandmother had told the power of attorney to spend the money, or if money had been transferred out of my grandmother's accounts, should this have been declared? I have not seen the forms so do not know what was included.

[MissFM]

Re: Money spent by power of attorney/executor prior to death

All you are entitled to see will be from the time of death - and there is the rub, Hopeful, with which we keep colliding

[Hopeful123]

Re: Money spent by power of attorney/executor prior to death

Thanks MissFM, I was checking as I thought things like gifts etc had to be declared in terms of the value of the estate.

[MissFM]

Re: Money spent by power of attorney/executor prior to death

You are quite right, Hopeful, they should - however, if there are shenanigans then you would be hard put to flush them out.

This is just my (rather jaded) opinion. What should happen and what does (if someone is less than scrupulous) being miles apart.

[Johnboy007]

Re: Money spent by power of attorney/executor prior to death

I believe that the executor has to collect in all assets of the estate.
He then has to pay all taxes and debts from whatever money is available.
He then has to pay the beneficiaries of the estate according to the will.
He must keep a final account of any and all transactions that he has carried out since becoming executor.
It is those accounts that you are entitled to see.

[basa48]

Re: Money spent by power of attorney/executor prior to death

You are quite right, Hopeful, they should - however, if there are shenanigans then you would be hard put to flush them out.

This is just my (rather jaded) opinion. What should happen and what does (if someone is less than scrupulous) being miles apart.

Correct. There is the 7-year rule whereby any 'gifts' (with some exceptions) given in the 7 years prior to the donors death *should* be included as part of the estate. At least that's how I interpret this > http://www.hmrc.gov.uk/inheritanceta...empt-gifts.htm and this > http://www.which.co.uk/money/tax/gui...ax-free-gifts/

However the first problem is proving that the £80k ever existed !

[MissFM]

Re: Money spent by power of attorney/executor prior to death

Correct. There is the 7-year rule whereby any 'gifts' (with some exceptions) given in the 7 years prior to the donors death *should* be included as part of the estate. At least that's how I interpret this > http://www.hmrc.gov.uk/inheritanceta...empt-gifts.htm and this > http://www.which.co.uk/money/tax/gui...ax-free-gifts/

However the first problem is proving that the £80k ever existed !

Basa you are quite right! I'd forgotten about the 7 year rule. Maybe there will be more info in the final accounts as to what happened prior to death than feared, bearing in mind that any executor is more in awe of HMCT than anyone else x

[des8]

Re: Money spent by power of attorney/executor prior to death

[QUOTE=basa

However the first problem is proving that the £80k ever existed ![/QUOTE]

The second problem would be PROVING it had been used not for the benefit of the grandmother