Hi My mom died in January of Late Stage Alzheimer’. My brother and I are executor’s. We both had Power of Attorney when mom was alive but I looked after her medical needs and my brother looked after her finances. My brother had opened some share accounts in mom’s name. In the days after she died until the death was registered and I told him it was he had to stop he moved some shares around. He thought he could because he had power of attorney. I am about to start Probate, which I’ve done before, but I’m worried how this will look if it’s noticed by HMRC. I don’t want to be in trouble because of It. Also I find it distasteful that, although he cared about her, he was thinking about money the day after she died.
Brother moved Shares after Moms Death
- Thread starter KathrynB
- Start date
Hello and welcome Kathryn, your brother is an idiot...nicest word I can think of under the circumstances.
Power of Attorney ends when someone passes away, for a start.
If the moving share resulted in him benefitting financially, problem, if he did it for inheritance tax reduction reasons bigger problem.
Get advice, last thing you want right now is to get involved in what might be...less than legal.
K
Power of Attorney ends when someone passes away, for a start.
If the moving share resulted in him benefitting financially, problem, if he did it for inheritance tax reduction reasons bigger problem.
Get advice, last thing you want right now is to get involved in what might be...less than legal.
K
For probate you are going to have to find value of shares at date of death, it will be obvious that transactions occurred after her death by an attorney whose power ceased on donor's death.
As executor I would tell the firms that a genuine mistake had been made without my knowledge and ask them to reverse all transactions after date of death.
As executor I would tell the firms that a genuine mistake had been made without my knowledge and ask them to reverse all transactions after date of death.
Than you Kevin, he definitely is an idiot sometimes. The shares moved to were ones with an increasing in value so ultimately as inheritors we will benefit. You are right that I should get legal advice. At least as I didn’t have access to them I can genuinely say I wasnt involved.
You can ask and hope they will, if you do it by email or letter you will exonerate yourself from any illegality.
An executor can sell shares before probate eg to free up cash for the funeral or for IHT eg by signing a declaration/indemnity form.
If the share price moved between the date of death and selling date he will have created a capital gain or loss for the estate.
It's the purchasing of shares after death which seems to be the complication for the estate/beneficiaries (wrt their acquisition cost as it wouldn't be the usual probate date of death valuation).
Any chance this was done within an ISA account as there might not then be any capital gains issue? I read something this week that suggested "continuing accounts" keep their tax free status for up to 3 years.
If the share price moved between the date of death and selling date he will have created a capital gain or loss for the estate.
It's the purchasing of shares after death which seems to be the complication for the estate/beneficiaries (wrt their acquisition cost as it wouldn't be the usual probate date of death valuation).
Any chance this was done within an ISA account as there might not then be any capital gains issue? I read something this week that suggested "continuing accounts" keep their tax free status for up to 3 years.
The problem is that it isn’t the Executor who has changed the shareholding but the holder of the LPA, which ceased as soon as the donor died.
he is also an executor! They were both POA, both of whose role ceased on the death of the donor, and now they are both executors.
As long as the value is noted on probate with value on death date, what is the problem? They are safe, he hasnt cashed them in an pocketed the value
all we know is
POAs do not automatically become executors on donor's death.
The OP clearly stated in the first post, that her brother and herself were both executors and LPA's.
Sorry my mistake.
https://forum.alzheimers.org.uk/threads/brother-moved-shares-after-moms-death.148661/post-2060661 .
applies
You need professional help to sort out the estate finances, maybe an accountant rather than a solicitor.
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