Executor issues - spending money from the estate -

Discussion in 'Wills and Estate Planning Law Forum' started by Seekingresolution, 12 May 2019.

  1. Seekingresolution

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    My parent passed away a little over 3 years ago.

    The will was entered into Probate (Victoria) and 1 sibling was named executor. There are 6 beneficiaries, including the executor as one. There were only a handful of assets; the largest being the family home.

    The will stipulated that 4 out of the 6 siblings had use of the house and contents until they either entered into a defacto relationship or got married. 2 beneficiaries had no rights to the estate at this time.
    These 4 beneficiaries were according to the will were also to pay all expenses associated with property while they lived there. Once everyone moved out or were married or defacto; the house was to be sold.

    Probate was entered and a loan was taken out to continue paying the mortgage by the 4 beneficiaries. The executor took out an additional $50,000 in this account to cover the funeral etc.

    The beneficiaries and executor weren't capable of handling the financial responsibility of the house and slowly started moving away.

    The executor wasn't pushing them for money and one of the beneficiaries was taking 'Rent from the other 2; but no one knows what they did with this money and how things were paid. They requested copies of bills, but we're refused several times.

    The executor then went back to the bank to re-finance the house into his name only and added another $150,000 to a new mortgage. The titles of the house, were then put from his name in the role of executor, to his name only.

    The executor claims he used this additional money to cover payments with the house; bills and such. Turns out only $30,000 was used for the bills and such. The remainder was spent solely by the executor on paying out his personal debts, as well as other expenses he will not disclose.

    It then come to a time where all beneficiaries were either moved out or moving out of the house and the house was put on the market.

    The house has now been sold. The executor went to a conveyancer to assist with the transfer etc. The Conveyancer was not advised the house formed part of a deceased estate and my sibling is the executor. Another beneficiary contacted the conveyancer and alerted them to this.

    Since then, one of the beneficiaries has gotten legal advice and is staking her claim. This same beneficiary has stolen the other items that are of any value and is refusing to return them. The will stipulated if anything was taken, it would form part of their share. The executor is not enforcing this.

    We are now 4 weeks from the house sale settling and the executor has been told he is not legally entitled to any more of the estate and he may face legal action because he has said he will not put back any of the funds he took.

    I have been told I need to sign an agreement that means all beneficiaries (inc. Executor and the one who has the other belongings) walk away with $50,000.
    I am refusing this. I believe in life there are consequences. The executor admitted he never wanted the house sold; because then no one would have known what he'd done.

    I believe the executor has gotten all he should out of the estate and if he accepts this; he can start a fresh without the risk of legal action for fraud. He is completely debt free, apart from the mortgage that will be paid off in 4 weeks.

    I am being pushed into the 6 way split. But I don't believe it's right and he needs to learn the lesson that he can't get away with this without the consequences of already having spent his inheritance.

    If we all don't agree at the time the house is sold, I have been advised the money will be put into trust. The Conveyancer has said because the title is in the executor's name solely, he can choose where the money goes. This is so wrong. The Conveyancer has a copy of the will and titles.

    The executor then tried to stop the sale of the house. He said he should have kept it, so no one ever would have known what he did. This is despite the executor not having lived there himself for approximately 12 months.

    I have no money like another beneficiary to get legal representation (I work, but live pay to pay) to work through this and know what to do.

    I want to know when the house settles in June of this year and the money goes into the trust account; what is the quickest way to have it dispersed correctly?

    It's a bloody mess. I don't believe he should get away with it and I know the other beneficiaries want it done and their share.
     
  2. Rod

    Rod Lawyer
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    Try calling my office to see if they can help.

    I don't work in wills/estates but can find out how they may be able to help.
     
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