Estate settled - paid out - solicitor asking for money back!

[des8]

Re: Estate settled - paid out - solicitor asking for money back!

As the executors have distributed the estate I think that the solicitors would have to proceed separately against each beneficiary.
It is more than probable they would obtain a court order for any non cooperating beneficiary to disclose certain documentation, including bank accounts!
A healthy bank balance would not be to the benefit of the beneficiary, and yes, he would have to show where the money has gone.

You might find this article of interest:http://www.bu.edu/law/journals-archi...ts/edelman.pdf

[jhiker]

Re: Estate settled - paid out - solicitor asking for money back!

As the executors have distributed the estate I think that the solicitors would have to proceed separately against each beneficiary.
It is more than probable they would obtain a court order for any non cooperating beneficiary to disclose certain documentation, including bank accounts!

If I recall correctly (and I should be able to check this out fairly easily) each beneficiary received a separate personal cheque from the solicitor.
This rather reinforces the assumption that the solicitor would have to make a claim against each individual rather than the two co-executors, does it not?

[des8]

Re: Estate settled - paid out - solicitor asking for money back!

Yes.

[jhiker]

Re: Estate settled - paid out - solicitor asking for money back!

Thanks to all. Just to be clear, I've been through the documents tonight and I can confirm how the mistake occurred. The original accounts document showed three balances from Halifax accounts. The total added up correctly according to the figures presented.
The estate was distributed to the benficiaries with separate cheques from the solicitor based on this figure minus legal fees.
It was only when the solicitor's accountants noticed some time later that the three balances were in error that this overpayment came to light.
The actual balances were recorded incorrectly on the original accounts document and the total was overstated. There was no way the beneficiaries would have known this.

[Openlaw15]

Re: Estate settled - paid out - solicitor asking for money back!

Thanks to all. Just to be clear, I've been through the documents tonight and I can confirm how the mistake occurred. The original accounts document showed three balances from Halifax accounts. The total added up correctly according to the figures presented.
The estate was distributed to the benficiaries with separate cheques from the solicitor based on this figure minus legal fees.
It was only when the solicitor's accountants noticed some time later that the three balances were in error that this overpayment came to light.
The actual balances were recorded incorrectly on the original accounts document and the total was overstated. There was no way the beneficiaries would have known this.

Have the beneficiaries spent the money and not in a position to pay it back?

[jhiker]

Re: Estate settled - paid out - solicitor asking for money back!

Well, that's an awkward one, isn't it? I am not aware of the financial circumstances of the others.
How can you tell whether it's spent if the money has been mixed? As to whether they have the means to pay it back, I'd say they probably have but whether any cash/bank account assets are part of the legacy or earnings since then, I can't really say.
I think we should probably write and offer a compromise settlement and see how they react.

[Openlaw15]

Re: Estate settled - paid out - solicitor asking for money back!

Well, that's an awkward one, isn't it? I am not aware of the financial circumstances of the others.
How can you tell whether it's spent if the money has been mixed? As to whether they have the means to pay it back, I'd say they probably have but whether any cash/bank account assets are part of the legacy or earnings since then, I can't really say.
I think we should probably write and offer a compromise settlement and see how they react.

If the money has turned into something else ie say a car it makes it difficult again. Trustees who abuse/ who steal from trusts try to do stuff like this, ie force the beneficiary with the losses down expensive routes, ie beneficial tracing. It would probably cost more in legal assistance than what it would for what the loss was worth. Property law is for people with money...if you have money property lawyers know how to do vanishing acts for assets so they're never seen again.