A top expert in the law on disputed family estates and trusts has highlighted the implications of a case involving fraud by abuse of power.
Dan Flynn, a Solicitor Advocate and a Partner at regional law firm Ellis Jones Solicitors, says the case of a Welsh mother sentenced to a jail term has lessons for any trustee or executor appointed to ensure a Will is properly sorted out.
Dan, who is based at Ellis Jones’ office in Fleet Street, London, gave his opinion after the Swansea Crown Court ordered Katherine Hill to pay back a £50,000 inheritance she stole from her two daughters. She and her father Gerald Hill had earlier been convicted of fraud by abuse of power in relation to the Will of her late mother Margaret who died in 2014.
The Will stated that the sum of £50,000 Margaret put in trust for her two granddaughters, Katherine’s children, should be held until they reached 25. Since the pair were only twelve and 15 at the time, Katherine was appointed to keep the money safe.
Instead, Katherine, of Alltwen in Pontardawe, Neath Port Talbot, put the money in an ‘instant saver’ account despite being advised not to, and drained it on successive withdrawals over the course of a year.
The breach of trust has left both daughters traumatised and estranged from their mother. Dan said:
“This is a stark reminder of the serious obligations trustees and executors hold. In this case, £50,000 intended for two young beneficiaries was taken instead by a trustee, their mother, who was legally and morally obligated to protect their inheritance."
“This was not just a family falling-out, it was a criminal act. Trustees and executors must remember they are not free to use estate or trust money as they please. If you are appointed as a trust or executor, you are holding it for someone else. Taking it is theft.”
Dan, who works in Ellis Jones’ Dispute Resolution department, added: “Your duties are governed by legislation, requiring you to act with care, keep funds safe and invest prudently. You are expected to preserve and possibly grow the assets, especially if the assets are held on trust long-term. You must act impartially and avoid any conflicts of interest. If you cannot fulfil the role properly or neutrally, step aside before becoming involved.”
For those making a Will, Dan said the case was a ‘sobering reminder’ to choose your trustees and executors carefully. “A tricky family dynamic makes no difference to the obligations placed on them,” he said. “Pick people you can trust and who have no conflicting personal interests.”
For beneficiaries who feel they have been disadvantaged, Dan’s advice is that there are options.
“You do have rights,” he said. You can apply to court to compel trustees or executors to act properly or even replace them. However, a court order is useless if there are no funds or assets left. Think practically and be sure there is a realistic prospect of recovering your inheritance. In the Hill case, the daughters were fortunate some money remained.”
In summary, Dan said: “This case reminds us all that managing someone’s inheritance brings with it a legal duty, not a personal entitlement. Abuse of trust can, and should, carry consequences.”
As a specialist in disputed trusts and estates, Daniel manages a busy caseload focused on the law of probate including disputes around inheritance, Wills, breach of contract and the roles of executors and trustees.
He is one of three senior Ellis Jones lawyers who are Solicitor Advocates, meaning they have the same rights of audience as barristers in their respective specialisms.
Dan is also a full member of the Association of Contentious Trust and Probate Specialists (ACTAPS).
Ellis Jones is a regional law firm with offices in Dorset, Hampshire and London.
