Inheritance - someone has been taking money out of the estate before division

[Natsku]

DD has inherited a share in her great-grandparents estate because her dad and his mum are already dead so she inherits their share. The great-grandparents died years ago but the estate has not been divided yet, not entirely sure why but at least part of the reason is because there's disagreement over the value of the cottage that is part of it. DD is under 18 so I am legally obliged to ensure she gets her fair share so I cannot agree to an undervalued division and that division has to be approved by the authorities (we're not in the UK, I don't fully understand the legalities here but enough to know this) so I have to agree with those parties insisting on a more recent valuation of the cottage rather than the value from over 20 years ago, which one family member is insisting the division split is based on. This family member has sole use of the cottage (but also responsibility for its maintenance) and has the estate cash funds in a bank account in his control. We asked for bank statements for that account and they show that he has been taking large amounts of money out of the account. Some large amounts have been transferred to other family members that are due shares in the inheritance so it looks like he's been giving them their shares early, even though the estate hasn't been distributed yet, and other transfers are to his own personal account, some of which he claims are so he could pay bills related to the cottage, others he hasn't written an explanation. There's a lot less money left in the account now.

I'm fed up of all the hassle of this, been trying to sort it out for 8 years now (since DD's dad died and I found out about it all), DD's dad died with a lot of debt that needs to be paid out of that money before DD can see any of it and I just want it to be over but it also seems to be that it can't be legal what he's done and he's surely cheating DD out of her rightful share so maybe its time to report him to the police?

Which country are you in?

Why have you left it so long? Engage a solicitor and start getting it sorted. Get a valuation done. Of course it cannot be based on a valuation from 20 years ago. If you don’t start acting then he’s going to spend all the money and if he’s living in the house, then he’ll try to claim he should have a bigger share as a dependant.

He’s not distributing inheritance early OP they’re all just stealing from the estate. I’d be very surprised if that’s legal in any country.

Yes you do need to report him for theft.

Depends on the country.

We have had issues with wills and very long dragged out processes, with money going astray in a country in a different continent. We have had to accept we will get nothing, despite being listed in the will as being a fairly major beneficiary of what should have been (and was 30+ years ago when the relative died) a large estate (think millions).

The authorities in the country are not interested. Probably complicit. Like you, the money is disappearing left right and centre, and there isn't a lot left in the pot now to even fight over. At some point soon it will be zero, and the estate will be signed off and closed. We have seen nothing!

My advice, would be to take the money that has been offered as (country dependent) that is all you are likely to get - if you actually see it at all - and take it as a win.

I got a lawyer involved from the start, and she did a lot but so long as this one person wouldn't agree to the new proposal based on a new valuation she couldn't progress it any further, and then she retired. I'm not eligible for legal aid any more and can't afford fees on my own but trying to get legal help together with the others that are in agreement.

Its Finland, so I don't think it would be taken very lightly. Just been looking things up now and it seems its embezzlement which is quite a serious crime. But I suppose you're right if the money all disappears what will be left to distribute? Sorry this is happening to you too, a lot more difficult I bet when its in another country.

Finland seems definitely more optimistic than our country - fingers crossed for you!

I guess it also comes down to what the other beneficiaries want to do as well. If it's 5 against 1, then does it makes sense for the 5 to club together and hire a lawyer (or similar) to push the case?

Also consider how you get the money into the UK (that would of been another headache for us, had there been any money). It might be quite straight forward from Finland, but worth checking out and any fees/taxes etc associated with that.

Police

I think its 3 against 3 which might complicate things as I assume the two that already got money from the account are happy with that. I've already suggested clubbing together for a new lawyer with the other two, they've been waiting for the bank statements to come before deciding.

I live in Finland so there's no extra complications with transferring the funds.

DD's dad died with a lot of debt that needs to be paid out of that money before DD can see any of it

That would not be the law in the UK; debts would be due out of the Dad's estate, which would not include this inheritance if he predeceased his grandparent. If his estate (excluding this inheritance) could not cover the debts, they are cancelled. You don't inherit debts.
It is different and more complicated if he died after his grandparent whilst waiting for his inheritance - then I think it would form part of his estate and be due to his creditors.

Of course Finnish law may be different.

The executor of the Will has a legal responsibility to act according to the Will, otherwise they can be prosecuted.

If you believe the executor hasn’t behaved in the best interest of all beneficiaries of the Will, yes, that person should be reported and investigated.

If embezzlement has occurred the executor of the Will should expect a custodial sentence.

I agree with pp - if dad died before grandparents then his debts don’t need to be settled from the subsequent inheritance. If the GP have been dead 8 years already, what creditors are still expecting payment from the dad’s estate at su ch a late date!?

Its the latter, his grandparents died before him but the estate didn't get distributed before he died so DD inherited his claim. If I remember right all the debts got handed over to the state debt collection agency to be taken directly from the estate when its distributed (i hope I'm remembering this right, otherwise I'll have to find all the debts and pay them individually and that will be a lot of work)

Again I am talking about English law, so may not be relevant.

So the inheritance goes to the father's estate, which can't be settled until the inheritance is received by the father's administrator. It is used to pay his debts.
Whatever is left then goes to the daughter.
Who is dealing with the father's estate? Is that you too?

Perhaps the debts have expired, I didn't think of that. I need to find out.

N

@missdparker... think you're on the wrong thread?

caveat- this is my experience under English law.

The whole process is flawed. Only the executor has access to bank accounts, paperwork etc. the beneficiaries have a right to see the accounts, but if the executor chooses to say, not include one account, then they have no way of knowing that account exists.

i am in a similar situation where not only did the executor take money after death, they also took bank cards and transferred money while they were in hospital dying. The police have investigated and aren’t prosecuting, they don’t say why, just that they aren’t. And I have documents showing the withdrawals and admissions that they took it for themselves. It’s complicated as if the person is dead- obviously, no one can prove they didn’t give permission or make the transactions themselves.

if you don’t have documentation showing they have acted criminally, you have to go to civil court to force the executor to produce the documents. That is ££££££ in legal fees. Which you will lose if the court decides against you.

even if there is a criminal case, you may still need to go to civil court to recover the money.

unfortunately the deck is stacked for the executor, as the assumption is it’s a position of trust and they should only act in favour of the estate. However if they don’t, proving it costs ££££££££ so the vast majority of estates aren’t worth it.

so in our case the beneficiary got £0, despite an estimate that they should have had somewhere between 40-100k. If we took it to court it would cost about £50k. It’s not worth the expense or the risk.

i believe a lot of executors get away with fraud because beneficiaries can’t afford to take it to court.

Sounds like you need a solicitor based in Finland… At least have a couple of meetings and explain what has happened and see what they say.. good luck!!!

I’d be wary of following advice that’s based on any other country’s procedures because it might be very different. I suspect it would be taken more seriously in Finland than in the UK but just my gut feeling.
Get a solicitor in Finland- then you’ll know for sure what to do and where you stand. There may even be some sort of governmental department who could offer you some advice first on how to proceed. I think you need to act quite quickly or risk it being too much time elapsed.

Could you afford 1hr with a solicitor to ask if there is a legal way to stop someone stealing money from the estate e.g. if you were to report it to the police now, would they freeze the account whilst they investigated the matter? This would at least prevent more funds from disappearing.

I assume the answer is no, but will the banks help at all (i.e. presumably they will have a record of a large transfer in and where it came from, so it will be clear it is from a deceased's estate - would they then require any sort of authorisation/see a will/probate certificate before funds can be withdrawn)?

I think I deal with his estate but its been so long I can't remember everything but pretty sure my lawyer at the time dealt with everything that could be dealt with at the time like drawing up the inventory.

I don't expect there's huge differences in the laws

Google AI states the following:

hallenging an estate administrator or executor in Finland involves following procedures under the Inheritance Act. You typically must file a legal action or petition in the District Court (käräjäoikeus) of the deceased person’s domicile. 1, 2, 3]
Depending on whether the administrator has acted improperly, you can challenge them using the following approaches:

1. Removing the Estate Administrator

If the court-appointed or mutually agreed administrator is disqualified, neglecting their duties, or acting in breach of proper administration, you can apply to have them dismissed. 1] File a Petition: Submit an application to the local District Court. Provide Evidence: You must include documentation or evidence detailing the misconduct, incompetence, or conflict of interest. Hearing: The court will hear both you and the administrator before making a ruling. 1, 2, 3]

1. Contesting the Distribution Report

If the administrator acts as the estate distributor and you disagree with how they have divided the property, you must formally contest the distribution report (perinnönjakokirja). 1, 2] File a Lawsuit: Bring legal proceedings against the other beneficiaries at the District Court. Strict Time Limit: You must file this claim within six months of the estate distribution. 1, 2, 4]

1. Filing an Official Complaint

If you believe the administrator has violated the law or caused financial harm to the estate, you can take civil action to demand compensation. If the administrator is a public official or lawyer, you can file an administrative complaint with the National Legal Services Authority Registry. 1, 2]

1. Next Steps

Because estate disputes often take months to resolve and require compliance with specific procedural requirements (such as drafting an application for summons), it is highly recommended to seek professional counsel. 1]

If you tell me what specific actions the administrator has taken (e.g., delaying the inventory, selling assets improperly, or unfair distribution), I can give you a clearer idea of which path—dismissal or a lawsuit—is best for your case.

Steps 2 and 3 seem appropriate.

Sorry you're going through this, that's really bad that the police aren't doing anything. I hope the police aren't so useless here. We have screenshots of the bank statements that he sent to us via his lawyer, which I hope is evidence for the police. One thing in my favour is that Finnish law dictates the legal minimum heirs must inherit, so DD must get a certain fraction of the estate and so long as she's still under 18 that's even more legally protected I think, but that means I need to get things moving faster before she turns 18.

I've checked and the legal aid office has an English language helpline on Wednesdays so I might be able to get some advice on what next step I should be taking at least.

Ime the banks would only deal with the executor.

the banks did freeze the accounts initially after seeing the withdrawals to the executor, but then the executor presented the will and they released the rest of the funds to them.

i had asked them not to. I also asked them to refer the matter to the police. Apparently only an executor can report fraud on a deceased bank account. Which is no use when it’s them committing the fraud.

i even got as far as the ombudsman, reporting that the bank should have taken steps to prevent the fraud. They found in favour of the bank.

bottom line is the executor has all the power. They can show or hide assets as they choose. It is very difficult, not to mention expensive, so bring them to account.

in England you would need to take it to civil court to stop any further money being taken by reporting the executor. Even then it’s apparently extremely difficult to get an executor removed, they get given the chance to account first. Again you need proof they have acted fraudulently.