Probate and Money Spent

[SultansOfSwing]

Can I please ask what happens if someone spends money from a deceased person's bank account whilst everything is going through probate? The person with right of administration is a relative who knew the deceased's internet banking details. It seems that the person has spent most of the money in the account. The person hss had their right of administration revoked by next of kin and the next of kin now has right of administration and trying to sort everything out. What can happen to the person who spent the money?

they are a thief. the theft needs to be reported to the police. as well as the criminal prosecution for theft there will need to be a civil suit to reclaim the spent money on behalf of the actual intended beneficiaries. depending on the sums involved this may just be through the small claims court.

What do you mean by "right of administration"? Are you in the UK?

I’ve recently been the executor of a parent’s will. I too had I online access to bank accounts as I helped my ma with online payments/transfers for several years before her death. My mums estate went through probate and I appointed a solicitor to deal with it.
Her bank bereavement dept authorised me to transfer the money In her account to a new account I set up as ‘estate account’. I was surprised by this. Was told because it was less then 50k that was fine. Different banks have different cut off points. I had to provide death certificate my birth certificate and will which showed me to be executor.
I paid legit expenses from this account in agreement always with siblings (funeral memorial house expenses as it awaited sale estate agent etc etc. I kept all receipts and took note of all movement in and out of that account. At some point I transferred the bulk to my solicitors client account.
After probate was granted the state accounts are drawn up. This included a statement of that account with details of every transaction provided by me. This was part of the accounts sent to all beneficiaries (along with the will) so all beneficiaries see what has been going on. They had a right to query anything. (There were a few amounts which I simply couldn’t remember what they were and I had asked siblings if they did and explained to them so there were no surprises).
So part of the duty of executor is to identify everything in and out of that account. They (you now executor?) should obtain bank statement and write to that person and ask what those amounts were and for receipts etc. Write without accusing and simply as part of your duty as executor. Also ask for reply in worsting.
Depending on what you receive back (including no reply) you may need to contact police and/or a probate solicitor for advice.
It will be theft if as described by you.

After probate is granted by court there is a standard 6 month wait period when nothing should be distributed as if there is any challenge to the will someone can challenge without leave if court in that period. Anything distributed and found to be wrongly distributed is then the personal liability of the executor. After 6nknths it becomes liability of the estate (so anything then distributed needing to be back comes out of the estate). Only saying this as unsure where in the time line you are but definitely if this person is a beneficiary you should not make distributions to anyone until this is sorted out.

Apols for long post. Some may be irrelevant. Good luck. Wills do not bring out the best in people !

Thank you for your replies.

Both parents of deceased are next of kin but appointed another relative to act on their instruction to deal with the estate due to not having a will so it went to probate. Person was given a letter of administration (UK) to tell them they can act on behalf of next of kin. That person has made legitimate payments for tax etc but they were the only authorised transactions. They did not fulfil everything asked of them and so next of kin have decided to remove their right of administration and deal with probate directly. Transpires the person has basically been paying their own mortgage using money from deceased's account which has been brought to probate's attention by next of kin after obtaining internet banking log in details. Do next of kin need to take further action or is this something probate do with regards to interitance taxes etc? I have never dealt with probate or someone's estate before and neither have they so everyone is unsure what to do next, especially when it is an emotional time.

Two things I think -
This is theft. Report it. First.

Then - It will affect probate - timing when it can be granted (I would think after police investigation repayment etc). The estate is the victim of the theft. The value of the estate won’t be able to be determined until the value of the theft can be determined. On this aspect I think you need legal advice. Probate solicitor.
Don’t delay reporting to police.
Good luck all.

I would get a probate solicitor involved and take their advice

Thank you