Could I be charged with fraud?

[BiscoffCheesecakes]

My dad died a few years ago & he left his estate to me & my brother. My db asked me to look after his share of money. At the time he told me it was because he wasn't very responsible with money & I knew more about where to invest etc. So I've had all the money in my name in various accounts & just transferred him money if he needed it for holidays etc.

I'm not particularly close to him & didn't know much about his work situation. He's always been a bit cagey about it so i don't ask. I now know he is on benefits & after seeing a post on here recently, I realised he wanted me to look after his money so he could carry on receiving benefits.

If there are investigations in the future could I just say that I wasn't aware of his benefit situation? Or will I or he be charged with fraud?

@BiscoffCheesecakes We haven't talked about what would happen if I died. There may be no proof that the money is his. To be fair, he doesn't have a huge amount left anyway

I hope you have evidence of every transfer to him, or when the money runs out he may all of a sudden become more less grateful and start claiming that you have stolen his money.

I think it will be traced eventually when they look at his bank accounts and it will also be traced back to you.

During Covid I was made redundant and lost my job, in the frenzy to stay finally afloat I was working various zero hours casual contracts (at one time with 5 different employers). HMRC came after me for back taxes only last year.

I think at some point when they look at his bank accounts they'll see that payments other than benefits have come in... unless you've been sending him cash in the post or by courier, the bank might tip them off. You'd be surprised how much they see and know.

👏👏👏

Legally it's exactly the same.

My mum wont buy me anything else once the money is gone because that is fair on my sisters. I do not have access to the money. I dont know how I could report it to the DWP. I do not have access to the account or know exactly how much it is. It is just in my mums normal bank account. If she died then it would not go to me. I
If someone wanted to give me £50 and I said no thanks and that person then said they would treat me to a posh dinner instead that does not mean I still have £50.
I do not have £10000. I have £10000 worth of items instead that I am given when needed.

Sorry i am posted on this thread. Sorry OP. I think with you it is a bit different as wills name people so there will be a paper trail for your brother.

Fraud is where there is a deliberate attempt to deceive. You are aiding your brother to steal from the taxpayer. Fair enough when you didn’t know. Now you do. Act and give him every penny back and take nothing more to do with it.

100% this

Check this out OP. Scenario employers who know workers are claiming benefits. Principles are the same, aiding and abetting. Now you know you have a duty to act or like someone said before do not be surprised if it comes back to bite you both later. It’s theft and a criminal not just civil offence:

https://www.stuartmillersolicitors.co.uk/how-know-being-investigated-dwp/#:~:text=This%20can%20have%20significant%20consequences%20for%20employers%2C,benefits%20at%20the%20same%20time%20as%20working.

Technically if it goes over 2 years the estate needs to register a trust and his share should be in a trust if not dispersed to him - but the TRS are quite clear they won't fine or take action for accidental omissions as most executors don't know this.

He will be charged with fraud. Now that you know, you should sit him down and tell him. It needs to be reported.

When my Dad died my brother wanted me to do this for him but the solicitors administering the estate wouldn't allow it - they said it had to go into a bank account in his name. He didn't have a bank account at the time so we had to open one for him.

How did you end up being able to accept the money?

If the OP was executor then the money would have been readily available to them. If there is no solicitor involved nothing is checked up on after probate is granted, only if a beneficiary raises a complaint.

He's deliberately asked you to this to get benefits and there is no evidence you did it unknowingly to DLA and HMRC. Time to transfer it and get something in writing that you kept it for him for your own protection. Not saying anything will happen, just now you're aware, he needs to ne more responsible and honest

We were both executors & I set up an account to receive the money from dad's estate. Db then told me to look after it as he didn't want to be tempted to spend it all. Apparently.

I think the lack of clarity about his reasons for holding this money in your name would have rung alarm bells.

I certainly don't judge you for this situation! Christ alive, business owners pull all sorts of tricks and call it "tax efficiency." The options are far more limited when you're struggling to make ends meet. Good luck to you.

There was no will and I am remembering it wrong... There was no will so we went through probate to become executors, and it was the conveyancing solicitor when we sold Dad's house that wouldn't release the funds just to me. Dad didn't really have more of an estate - £14k in savings, from memory - and we split that up equitably.

@candyflossbabe thank you for stating this - I’m actually a very liberal minded person who believes in good social support for those genuinely in need , but there really are a great many piss takers out there of all classes and creeds and ages who seem to think the DWP are fair game and that their benefits are a life long entitlement regardless of any actual need or changes in circumstances. As well as this thread there’s the ongoing thread at the momentof someone who thinks it would be better to just spend a nice lottery win of £125000 as quick as possible to put her under the limit for her still to get top up benefits benefits .

I too agree with @candyflossbabe…

I would 100% be depositing the whole amount to him by the weekend

Although I would add that she should also send him all the interest she received on his share of the inheritance.

In her shoes I would also make sure that I had meticulous records of all financial transactions relating to this money, as well of copies of all relevant communications with her brother.

But you've included in your tax returns income that should belong to him? I.e. you've lied on your tax returns

OP is there any reason you point blank refuse to answer the many, many PP who have asked how much it was/how much is left?

I don't want to say the amount incase I'm outed but it was approx £80k each

I'm shocked that you think that. It is definitely not "clear" because it didn't happen!

I haven't lied. The tax is deducted from my income. If my db had the money he'd have to pay the tax too