Brother gave away Trust Assest

[Lucky112]

So when my mother died 3 years ago, she stupidly put my brother in charge alongside with her financial advisor of a family trust.

This trust has ruined our family, because of numerous problems.

Her will was complex and I had to seek legal advise over it, which I had a right to do so.

I would like to know if I can have grounds to have my brother removed as Trustee.

Firstly, my mother had a 3 year old car, a Celerio, which had very little mileage and was in good sellable condition.

Unbeknown to me, my brother gave the car away to a non beneficiary of my mother's estate, ie his sons girlfriend.

My mother paid I believe around £12K for the car.

My brother turned round, in front of my husband and said"I hope you don't mind but I've given the car to Angela as they needed a new car".

I kicked off and said, hang on a minute, I'm the main beneficiary, and I needed the car as my current car is 14 years old, and had just cost £400 in repairs, plus I am disabled and need a new car myself.

His answer to that was "they've got kids", I said it doesn't matter she is NOT a beneficiary of the estate.

Anyway, he has technically given away an asset which could have been sold to have put money into the trust.

Can this action alone get him removed?

What are the terms of the will?

He has stolen money from the trust so I think you’d have no problem getting him removed. I’d also sue him to pay back the value of the car he stole.

Is there a solicitor involved? It's outrageous that he gave away something that was meant for you to his son's girlfriend. The fact she hasn't got a car is nothing to do with it.

Was the car stated in the trust as part of her estate specifically when everything was itemised? You need to get advice of a solicitor but it sounds like he shouldn't have done that.

Yeah, shouldn't have done that. His responsibility is to act in the best interests of the beneficiaries. Do you have the details for the second trustee?

It doesn't matter. Angela wasn't a beneficiary anyway.

Get a solicitor involved.

I assume your brother and the Financial Advisor are the Executors of your Mum’s will. This means they are responsible for accurately documenting all the assets (including the car), seeking probate and distributing the estate in accordance with your Mum’s will.

Whether or not you were entitled to receive the car will depend on how the will was written. However, the value of the car forms part of her estate and the Executors are responsible for ensuring if they liquidate any assets (car) they get a fair/reasonable price which becomes part of the estate.

Legally the Executors need to keep estate accounts. Legally a beneficiary is entitled to a copy of the estate accounts once probate has been finalised.

I agree with pp ask your solicitor to write to both the executors asking for a copy of the estate accounts and in particular the listing for the car or the value of the car.

It is possible your Brother took the car as part of his inheritance rather than cash.

Get legal advice. Separately you should apply for motorbility.

The car was NOT itemised in the Will or Trust Accounts. This is being queried by my current solicitor

I am joint beneficiary.

The Will was very complex, hence why I sought legal advice.

All the money was placed into a Discretionary Family Trust.

As I understand, I am entitled to the Trust's Income and Capital.

My mother's car was NOT valued under Probate, and was NOT listed in the assets of the Estate.

My brother did NOT ask me if I wanted the car, he gave it without my knowledge to his son's girlfriend.

When I challenged him over it he said "they've got kids", again putting his grandchildren above me.

I am joint beneficiary, I was refused access to the the Trust Accounts and Estate Accounts, I only saw them because of getting solicitor involved.

My solicitor ir currently investigating if we can remove my brother as Executor/Trustee because of how he disposed of the car.

I am also concerned as to what's happend to my late mother's jewellery, my brother also refused me her jewellery box when I asked for it for sentimental value reasons.

My solicitor ir currently investigating if we can remove my brother as Executor/Trustee because of how he disposed of the car.

Well, I would leave it to the paid legal expert to determine the answer to this, rather than randoms on the internet.

So a discretionary trust means that a beneficiary is only entitled to distributions at the trustees discretion. This means that distributions can be made unequally amongst beneficiaries.

There is a caveat however in that a trustee has a fiduciary duty to work in the best interests of the beneficiaries. From the little context given, I would suggest that giving away a trust asset to a non-beneficiary definitely goes against that. This is assuming the car was a trust asset though.

You have a solicitor and they would be best placed to advise on what to do. If they think this may be possible, then follow their advice.

The car was NOT valued under Probate and was NOT listed on the Estate either.

This. The assets are not his to do with as he pleases. The assets must benefit the beneficiaries of the will. You need to act quickly before he gives more assets away. You can sue him to replace the value of any lost assets.

The other trustee must be absolutely shitting himself with the way this trust is being ran!! Perhaps he could do with being reminded of his fiduciary duty?

All assets must be listed. He is acting illegally.

The car and jewellery form part of the estate. Who were the executors?

Sadly my older brother, and her Financial Advisor. Its the brother who is the problem executor/trustee.

Jewellery and car were NOT listed as Trust or Estate Asset.

They have been told their behaviour has been unacceptable

I had a Trustee back in August last year, luckily the meeting was recorded, you can hear me on the recording challenging over the giveaway of the car to a non beneficiary, my brother refuses to answer, the other trustee brushed it under the carpet, when I asked for money last year for a new car I was refused on the grounds they wanted to make the trust last longer, however this is being looked into by solicitor.

@Lucky112 there are two separate issues.

Firstly the creation of the trust and what assets it should contain.

The second is as a beneficiary of the trust what you receive from the trust.

Unless the will stated otherwise, and this seems to be the case, the car and jewellery, or their value if sold, should form part of the trust. This is fraud and your solicitor is best placed to deal with this.

It is up to the trustees to manage the trust to maximise the benefit to the beneficiaries. Either you receiving the car or being funded to buy a car from the trust to facilitate your day to day living seem perfectly reasonable to me but IANAL. Again, your solicitor is best placed to advise you.

I would however make it clear to the Executors you will pursue them for any legal costs you incur due to their failure to administer the estate correctly. Fraud is fraud.

My current legal fess are £23K.

The Trustees are constantly putting off paying them, claiming there was NO dispute.

As I've made it perfectly clear from the start of the litigation, my brother was refusing me payments from the trust for 3 years, gave the car away, etc etc.

One thing after another he hasn't done.

Again, the Will makes it clear although discretionary, I am entitled to the income and capital of the trust, my brother was refusing me money saying that "I want the trust for my grandchildren".

The solicitor is seeking advice on his removal.

My mother was a fool with what she did, and failed to use a solicitor when she made the Will, hence why the Will was complicated.

@Lucky112 im sorry you are going through this . Your solicitor seems to have it all in hand.

Thank you.

My mother didn't give two sh*ts about me, which is why she sought a ridiculous trust in the first place.

The Will was so complex, even my solicitor cannot understand some of its contents himself.

However, she clearly didn't want me to have access to money at all, in fact she stupidly put in the Will that if anything happend to me my share would go to my brother, then ultimately the grandchildren.

This is one of a few reasons why my brother kept refusing me money.

It doesn't matter. It was still her property and would come under the same category as all other personal effects that were not specifically mentioned in the will.