Probate help needed

[Anachronism]

I am both executor and beneficiary of my late fathers will together with my sister. Probate has been granted, the property sold and it has come to divide the proceeds.

My sister had an account of my fathers, in her name, which was set up so all expenses could be paid when he died. She has admitted in both texts and at the meeting with the solicitor that the money in this account was my fathers and it was included in the Inland Revenue accounts which we both signed. She has now decided this money belongs to her and the estate accounts she has sent to the solicitor don't contain these funds. This has resulted in the estate accounts being inaccurate so we can't settle.

I have no documentation as it was all removed from my fathers without my knowledge.

Does anyone know where i stand legally here? As she has signed the Inland Revenue Accounts stating this money was part of the estate isn't this fraud?

Thanks in advance

[Peridot]

Re: Probate help needed

Hi,

It may be that the account referred to has been cleared due to testamentary expenses and funeral costs etc being paid and this would have been reflected in the estate accounts as liabilities of the estate. So it may be the account date of death figure has been included in the accounts as date of death valuations but this has in effect been cancelled out by the debts and liabilities that have subsequently been paid by the estate.

You mention that there is a solicitor involved? If that is the case, I would suggest they should be provided with a copy of the inheritance tax forms that you completed, if they haven't already had this. I would then flag the account and the value that you believe should (and in fact apparently was) included in the estate. Point out that this is not on the estate accounts and ask for an explanation.

If the amount that you are in dispute about is not significant it may be worth ignoring it, as the cost of dealing with it may outweigh the benefit. Of course if we are talking about a significant sum then maybe you can negotiate that the amount that has been 'withheld' from the estate accounts is part of the inheritance your sister has already received and so should be deducted from the remaining amount due to her?

Provided the amount was declared for the purposes of calculating inheritance tax and that the correct tax has been paid and also any interest earned, during the administration period has been accounted and divided appropriately then I wouldn't get too panicked about it at this stage. The equality of the distribution can be dealt with, but do let the solicitor know your worries and get an explanation from them if they know the reason before assuming there is something untoward happening.

[Anachronism]

Re: Probate help needed

Hi Peridot,

Thanks for getting back to me.

It was the solicitor who informed me the accounts didn't add up after all debts and liabilities had been deducted. In her words 'i think this is quite a significant amount of money' I think she's quite aware of what is going on and has asked my sister to resubmit the accounts including the missing funds. My sister seems very reluctant to do this which is hardly surprising.

I have requested that the solicitor sends me a copy of the accounts my sister has already submitted. But when I receive them where do i go from there? Can my sister just decide at this late stage that these funds are no longer part of the estate after agreeing, in writing, that they are?

[Peridot]

Re: Probate help needed

Hi,
As long as the inheritance tax position is correct I think the issue with this other account can be dealt with. It sounds like the solicitor has got a handle on things, so I would let them deal as far as possible. Having said that is the solicior dealing with the final administration of the estate, or are they dealing with the property sale?
If you feel able to maybe suggest to the solicitor (if they are a private client specialist) that you would consider an unequal division of the residuary estate to take account of the discrepancy in the figures.
Your sister doesn't appear to be denying that she had the funds in the holding account, just what should be included in the final accounts. This is no argument when she has already declared that the funds exist in the IHT forms which is in effect, an inventory of your fathers assets on the day he died.
I assume that your sister is aware that while the solicitor is involved this will incur fees which will be deducted from the estate funds that are to be distributed, thus reducing the inheritances you will receive?
If you are able to, maybe have a chat with her, pointing out that the funds have already been declared so the estate accounts to finalise the administration need to include the correct figures to balance and divide the estate fairly, even if this means that any funds she has had control of are deducted from her share. I have assumed there is to be an equal division of the residue?
I would wait to see if she produces the accounts or provides an explanation for the short fall. But if the information is not forthcoming from her I would ask the solicitors advice, or if they are not a private client solicitor maybe consider seeking some specialist advice yourself. If you have not been involved if the preparation of the accounts at this point and have not dealt with the holding account you can not be held responsible. In any event if you and your sister are the only residuary beneficiaries, then no other beneficiary has lost out so to speak and the likelihood of any potential claim would only come from you, if you are the one potentially receiving a reduced legacy. Hopefully you can sort this issue out by negotiating the division, to balance the residue out between you. It would be a shame to have a rift between the family after losing your father, so I hope that you can reach a solution that is agreeable to both of you.

[Anachronism]

Re: Probate help needed

Thank you Peridot,

It's really helpful to get this unbiased advice.

I appointed the solicitor the deal with the administration of the estate as I was't made aware i was executor until my sisters husband asked me to sign a blank document at which time i became suspicious and refused until i had seen a copy of the will. This was several months after the death of my father.

Yes there is supposed to be an equal division.

I am just relieved to know I can't be held responsible for submitting and declaring false accounts.

Thanks again for your help and fingers crossed she sees the absurdity of all of this

[Peridot]

Re: Probate help needed

I'm glad you have a probate solicitor acting. Let them guide you.
Your sister opened this account to 'hold' your father's monies. The figure was included in the date of death valuations, so the tax position has been settled as far as you are aware. Everything since the date of death should be 'traceable' through the statements from the account. It may even be as simple as working through the account statements to identified correct expenses that can be deducted from the estate and identifying other transactions which may not be allowable, but your sister maybe incorrectly believes they are.
Estate accounts are not the easiest things to deal with but provided the initial date of death figures were correct it should be doable so to speak.
Sit tight for the moment, see what happens and take your solicitors advice if needs be. Hopefully you'll manage to get it all sorted reasonably quickly.
Here for support if needed.