Deed of Trust

[Wendy1956]

Hi, I am the trustee of a Deed of Trust, the trust I hold was for my mother’s property (she was not good at paperwork and I had promised my father, in the event of his death, I would oversee my mother’s financial affairs - he died in 2002). My mother died in May 2022 and I oversaw the sale of the property - this meant clearance, preparation for sale (this needed 10 round trips to fill skips, garden, painting and more), liaison with estate agents, solicitors etc. I have checked the Government guidelines regarding petrol and it appears that I would be able to claim expenses for over £1000, I have claimed £400 - having been pressed to do so by the executor my older brother. I have a sister who has taken legal representation and we are in a battle, firstly the solicitor had threatened to take my brother to court for not investing the proceeds of sale whilst conducting probate - I read on this forum that it is NOT the duty of the executor and the solicitor has backed down. Now the solicitor has said that I cannot claim travel expenses as I am not the executor - but I believe I am able to claim as the administrator? Could you please advise?

[Pezza54]

Hi Wendy
Welcome to LB

Much depends on whether the trust is revocable or irrevocable
A revocable trust gives the settlor the ability to change or end the trust at any time during their lifetime. An irrevocable trust is a permanent arrangement
If the trust is a revocable trust and the settlor dies the trust turns into an irrevocable trust and the successor trustee steps in to take charge. If this was the case with your mother, your brother, as named executor in your mother's will should have stepped in to arrange the sale of the property
If the trust was irrevocable the terms of the trust should have been followed, including matters after your mother's death which may include the sale of the property

Please read the article "When does an executor have to pay beneficiaries" at www.co-oplegalservices.co.uk
There is a difference between pecuniary legacies and residuary estate.
The legal rule is that pecuniary legacies should be paid out within a year of death, known as "the executor's year"
Executor's should safeguard estate money. Common practice is to invest it in an executor account that pays interest. There is no legal rule that estate money should be invested in an account paying interest, so the solicitor was right to back down

It is an executor's duty to produce estate accounts and beneficiaries can ask to see these accounts. Any expenses claimed should be backed up with invoices, receipts. An example is the invoice from the funeral director

As your sister has appointed a solicitor, your brother should ensure he prepares full and accurate estate accounts

[atticus]

All this over£400? For crying out loud.

[PallasAthena]

It is an executor's duty to produce estate accounts and beneficiaries can ask to see these accounts. Any expenses claimed should be backed up with invoices, receipts. An example is the invoice from the funeral director

I don't know if this is relevant in this case but it's generally only the residuary beneficiaries who are entitled to see the estate accounts (exceptions if the Estate is insolvent). Beneficiaries who only receive specific legacies under a Will do not have that right if their legacy has been paid out in full.

Helpful guidance on what should be in the Estate Accounts here:

What are Estate Accounts? (co-oplegalservices.co.uk)

[Wendy1956]

Thank you all. I agree £400 is nothing and initially nothing was being claimed. The executor has claimed not one penny and neither did I, it was the executor who wished to contribute to my expenses as I have done most of the work clearing the house, preparing and selling the property.

The sister in question was a joint POA with me and it became apparent, whilst checking my mothers bank account for creditors, that she had taken my mother’s bank card and was using it to pay her own bills, for example pets bills for her pets, petrol and car washes, hotel bill, and arranging for a Motorbility vehicle 3 weeks prior to my mother’s death then claiming the £3,500 refund from Motorbility by posing as the executor of the Will. Along with several cash withdrawals. My mother had been diagnosed with dementia and her gp does not believe she would have understand why she was signing forms for a vehicle she could not drive - indeed she did not have a valid drivers licence. My mother had confided in two relatives and a friend that she thought her card was being used without authority (she had opened a bank statement) - again this was shortly before her death - those people have written to my brother and I with statements. We had advice from a probate lawyer to not allow this situation to go to court as it would be very time consuming and costly, ultimately costing more than was stolen. It is a surprise that she has engaged a lawyer who, of course has threatened to apply to the court to investigate probate. The dilemma would be that we would have to disclose her theft. The estate document is one hundred percent above board with all receipts. My sister is just being spiteful and through her solicitor she has demanded we pay the energy bills as we used energy during the clearing and decorating stage of house preparation and whilst the estate agents were entering the property. She did nothing to help.

[atticus]

You could ask this solicitor whether your sister wishes to provide a full account of her dealings with your late mother's accounts while acting under the LPA.

[Wendy1956]

We have done that but he has not responded and it appears he isn’t going to. He just threatens with legal proceedings, he threatened to take my brother to court over him not ‘investing’ the sale proceeds and ‘if you have been proven in the wrong, you will be charged my costs’!

[atticus]

This sounds rather more mouth than trousers.