Executor Jailed for 'Frittering Away' Inheritance

Executors must be able to account for every penny of the estate they are administering as they have a fiduciary duty to the creditors and beneficiaries. They must record every financial transaction during the administration period, essentially probate. The end of probate is only arrived at at the distribution of all assets; that is, after the creditors have been contacted and debts settled and the provision of a final set of accounts detailing the remaining assets. These can then be distributed according to the will, assuming there is one.

So, the following case highlights the risks executors face if they ignore their duties and particularly, when they act in a criminal manner.

Gibbs v David Loveday

In August 2015, Anita Border died leaving an estate valued at £220,000. There were only two beneficiaries named in Ms Border’s Will (Emma Cullen and Parminder Gibbs) and they were to receive equal share of the estate. The Will appointed one executor, David Loveday, described as a good neighbour of the testator..

Mr Loveday ensured Emma Cullen received her 50% share of the estate. However, for whatever reason, Parminder Gibbs was not so fortunate. She received nothing and finally issued High Court proceedings with a view to removing Mr Loveday as an executor.

Loveday has stubbornly refused to explain the whereabouts of the beneficiary’s money. He was found in contempt of court for failing to comply with orders to remedy the situation and sentenced him to six months in prison. He has subsequently been imprisoned for a further three years and seven months after admitting fraud. “shown absolutely no remorse”. The judge overseeing the case commenting on the fact Loveday had frittered away the money on cars, holidays and debts stated:

It was an abuse of a position of trust over a prolonged and sustained period of time.

CONTACT TWB

It is always important to review your circumstances as family life evolves and when cultural, political and tax legislation changes occur. Keep up to date with developments and seek expert advice from firms like TWB, but know that TWB is at the forefront of its profession.

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