Executor faces jail time for “squandering” the cash on Netflix, Argos an TfL fares!
A pensioner, Anita Border, appointed her neighbour, Mr Loveday, as the executor of her estate. Her estate was relatively small, comprising primarily of her house which Mr Loveday sold for £275,000. Mr Loveday did not take any legal advice in relation to the administration of the estate.
Ms Border left her estate to two family friends, Mrs Gibbs and Miss Cullen. Miss Cullen was Mr Loveday’s girlfriend. Mrs Gibbs reported to the court that she had not received a penny of the sum owed to her. This raised grave concerns about Mr Loveday’s conduct and court proceedings were issued seeking his removal as the executor of Ms Border’s estate.
The court agreed and appointed Mrs Gibbs as the replacement executor. However, it transpired during the proceedings that £220,000 had already been spent by Mr Loveday on personal living expenses. This included expenditure on Netflix, purchases from Argos and TfL fares.
This was a straight forward estate and all Mr Loveday had to do was transfer the property to Mrs Gibbs and Miss Cullen, or pay Mrs Gibbs 50% of the sale proceeds. During the proceedings, Mr Loveday defied court orders by refusing to disclose his bank records making it impossible for Mrs Gibbs to investigate what had happened to the missing £220,000.
Mr Loveday admitted he was in contempt of court and he will learn his fate when the case returns to court next month (November) for sentencing. The judge is allowing Mr Loveday one final opportunity to provide an explanation as to what happened to Mrs Border’s money. If he fails to provide the explanation then it is likely that the highest penalty will be imposed – two years behind bars.
If you have any concerns relating to the administration of a person’s estate, then you need to seek urgent specialist advice as soon as possible. Early intervention can help preserve estate money and prevent significant losses which, dependent on circumstances, may not be able to be reclaimed.
If you are concerned funds have already been spent then steps to employ a solicitor and make a claim against the executor should be made immediately.
GA Solicitors is one of only a few firms in the region to have a department dedicated to inheritance disputes and to ensure all works are undertaken by specialist and experienced solicitors. Contact the team on 01752 203500 or email me via anna.wonnacott@GAsolicitors.com.