Misuse of Power of Attorney

[TheivingBIL]

MIL died nine months after giving financial POA to BIL and DH.

DH unwell and not local, BIL living with (and sponging off) MIL for several years. DH unaware BIL had started controlling money some time ago.

I'd agreed to sort out HMRC estate valuation and probate although they are both executors because, quite honestly, neither of them would know where to start.

DH obtained seven years worth of bank statements so I could check debts, loans etc. It's evident that BIL has been helping himself for years. There's around £40,000 worth of loans which he hasn't repaid and about £1000 a month in cash withdrawn. Before he moved in she was spending about £30 a week. She was housebound and extremely frugal.

Once POA was granted, he got even worse. He's taken the remaining £20,000 using her debit card or bank transfers and spent it on jewellery, sports equipment, gym membership, stuff for his girlfriend's pets and business and even gave his daughter £5000 when his mum, who had dementia, was in hospital.

I phoned the Office of the Public Guardian who said that it was outside their jurisdiction and was definitely a police matter.

I annotated over 100 pages of statements, marking up genuine expenditure and suspected theft/misuse of her money. The police have had it for two months but are totally unresponsive. They said they had enough evidence to interview him but were very busy. He's already pretty well known to them, having a criminal record for violence, theft, drug dealing over many years. As far as we know, the only time in prison was before his mother made him executor so he's not disqualified from being one.

I need to submit the estate valuation to HMRC but if I include the missing money it brings it over the IHT threshold. Obviously I have no guarantee that we'll get it back. HMRC have been unhelpful about how I should proceed.

I thought he was supposed to provide a statement of account once he started officially spending her money, but can't find anything online. Does anyone know what this involves?

MIL's solicitor was keen to take on the work but wanted money up front which we haven't got. Also, to instruct them to deal with probate he'd have to agree

I have the information to submit the valuation, but obviously as an executor he needs to see it, at which point he'll turn nasty, possibly violent. DH is frail and can't cope with him.

Sorry, it's all a bit Jeremy Kyle, but if anyone can advise how to proceed and whether I've missed anything, I'd be very grateful.

I've just realised I typed thieving wrong

Anyone?

This article has a lot of information www.ts-p.co.uk/news/case-update-abuse-of-position-by-an-attorney
You could bring a civil case? Depends how much stress you want at the end of the day. It is so frustrating when the police and Office of The Public Guardian won't help. Does The OPG have an ombudsman you could complain to?

Thanks for that. The OPG says that their powers end on death so I'm not sure an ombudsman can help.

I've no doubt if it went to court he'd be forced to repay at least the last £20,000. It's not even the money that's upsetting, it's the abuse of his mother, a vulnerable old lady. I'm rather surprised the bank didn't notice an unusual spending pattern.

If we get nowhere with the police in the next few days we're going to have to pursue the civil route. If he was a reasonable person we could try talking to him and come to an agreement, but he's not. I'm a bit scared I'm poking a hornet's nest by asking for records of spending

You make a good point about the bank noticing an unusual pattern of spending. I believe they have a responsibility in such circumstances when someone is vulnerable, as is often the case when a POA is in place. May be worth taking up with them as well.

Yes, I'm doing that. Putting it in writing as they don't bother to return calls

Thats awful, what a scumbag
Would he be able to pay back the money even if he were instructed to?

He's due to inherit half her estate so eventually, yes. Scumbag is the word, I feel sick whenever I think about it. He's also still living rent free in her house.

I have been an attorney, followed by an executor. Nope, there is no statement of account although the attorney is supposed to keep records of any big spending decisions they make and any advice they took. In this situation I doubt there would have been any records kept even if it had been a requirement.

Realistically, what's the chance of recovering any of it? Slim to nil I would imagine and that would be the basis of my probate valuation. Debts owing have to be recoverable. If he's blown the lot then he'll not be in a position to repay it. I am not qualified to give you any advice, in your shoes I'd be looking for some professional advice to see if he can be prevented from assuming the role of executor given the extent to which he's already abused the role of attorney. I'd look for another lawyer who is willing to invoice the estate, your search term would be "contentious probate".

(Can I just check that you've claimed all the allowances with the probate form, not just the £325k)

Thanks for that. Yes, I've claimed the unused portion of FIL's - if the misplaced money was recoverable it would just tip it over the limit. I've also used the allowance for the funeral and wake.

We're having one last try with the police then using MIL's solicitor to ask how he's intending to pay and to get him removed as executor. He might just decide that in view of his record it's better just to do it.

A member of my extended family stole thousands from her dying granny, and ended up with a criminal record for it. So the police should do something. Poor granny went to her grave knowing what she'd done.

No ide whether this would work, but if a solicitor OKs it I would be minded to:

• include a good % of missing money in the estate as debts


• if it crosses the IHT threshold then so be it, pay it.


• work out BILs share, deduct the loans from it, give him that

If he wants to complain he can, but it would open up the can of worms re missing money.

Estate worth 1.2 mil , including the 300k missing money
Pay 80k IHT (or whatever)
Leaves 1.12 mil
So 506k each
BIL gets 206k and his 300k debt cancelled. Your DH gets 506k.

If more than 3k money was 'given' to him in the last seven years it needs to be declared as gifts anyway and you or solicitor could ask him for an account.

Yes, thanks - that's the approach I'm hoping to take.

@TheivingBIL You didn't mention the residence nil rate band so I will seeing as you mentioned a house. It took me ages to be confident that I'd filled everything in right.

I really hope that everything works out for your poor husband, it's bad enough losing a parent without finding that your remaining family member has been stealing from your mother. I'd be engaging a professional just so I didn't have to deal with the toerag ever again.

Keep reporting to the police. Unbelievable that they are not interested

I agree with a PP. There is clearly a very large amount of money if its her allowance plus her late husbands and the house has been left to direct children. £1m...

So even if he has taken loads that comes out of his share. So it wouldnt be divided up 50%/50% because effectively he has taken some of his 50% 'share' out already.

They say they're interested, particularly in view of his record, but haven't got time to deal with it!

I actually spoke to someone from a different force and he said that elder abuse is a hot topic at the moment and he thought they'd be straight onto him