Misappropriation of Estate Assets

Misappropriation, probate fraud, elder/financial abuse is often concealed and, if discovered, often only comes to light after the death of the person whose funds are being misused. It is estimated to cost estates around £150 million a year. However, as this is underreported and hidden, the true extent of the problem is expected to be much greater. Misappropriation of estate funds and assets is expected to continue to rise given the increasing number of probate disputes, increasing number of Lasting Power of Attorneys being prepared and registered, the aging population in England and Wales, but also as the number of people with capacity concerns or issues affecting capacity is also continuing to rise. Unfortunately, there aren’t any additional safeguards for scrutinising Lasting Power of Attorneys even when the Power of Attorney Act 2023 in brought into full force.

This webinar should be reviewed by private client practitioners to consider potential warning signs and safeguards to put in place when dealing with vulnerable clients, attorneys, and what to look out for in the administration of an estate, including reasonable investigations of actions taken during a person’s lifetime and after death. Should also be viewed by practitioners involved in probate, trust, and estate disputes, including disputes in the Court of Protection to consider the best steps to take to recover estate funds and assets, and also the steps that need to be taken by Personal Representatives to mitigate the loss/damage suffered by an estate, but also to minimise the risk of facing action from disappointed beneficiaries. This also includes considering the wider actions that can be taken, with the police and third parties, so that practitioners can involve all relevant parties when considering how best to maximise the recovery of assets and funds, including recent examples of where this has been reported.

Learning Objectives:

• How misappropriation can impact on the estate
• Duty to investigate by personal representatives
• Pre-death: assets misappropriated during lifetime
• Post death: assets misappropriated after death
• Practical considerations and warning signs
• Interim measures is suspect/believe misappropriation has happened or is continuing
• What happens if the personal representatives misappropriate estate assets
• Other considerations when taking steps to recover estate assets and funds
• Criminal prosecution and involvement of third parties
• Examples of criminal prosecution in the last few months