Claim for Wrongly Taken Cash Before Death

Written by Tanya Waterworth, Digital Content Writer

About Our Legal Expert: This content is produced with oversight by Michael Jefferies, Managing Director who has over 30 years’ legal experience.

What Can You Do as a Beneficiary?

When a loved one passes away and it emerges that money has been taken from the estate, a solution may be to claim for wrongly taken cash before death. According to the law, an estate should be distributed according to the deceased’s will – or if there’s no will – under the rules of intestacy. However, it’s not uncommon for will disputes to start when family members or others close to the deceased, have taken cash or assets before death. This reduces the value of the estate and can be particularly stress for beneficiaries who feel cheated out of their rightful inheritance.

If you suspect this may have happened to you, you should be aware of how to identify and challenge suspicious transactions. There are practical steps you can take and legal remedies available to you to take this further.

We partner with solicitors experienced in contentious probate who can advise you on what to do next. It’s advisable to act as early as possible if you feel money or assets were taken from your loved one’s estate prior to their death.

What Does “Wrongly Taking Cash from the Estate Before Death” Mean?

Before a person dies, their assets legally belong to them. However, disputes often arise where someone takes money for their own use rather than for the benefit of the person. This may be a relative, carer, or even an attorney under a Lasting Power of Attorney (LPA).

Suspicious signs can include:

• Large cash withdrawals from bank accounts with no clear explanation.
• Transfers of money to family members or friends.
• Gifts of property or valuables made when the deceased lacked mental capacity.
• Misuse of a Power of Attorney, where the attorney acts outside their legal authority.

If these transactions unfairly reduce the estate, beneficiaries may have grounds to bring a claim during probate.

Why This Falls Under Contentious Probate

Contentious probate refers to disputes about the administration of an estate after someone has died. While most people think of challenges to the validity of a will, claims about money taken before death can happen.

Beneficiaries may discover that the estate is worth much less than expected. On closer inspection, suspicious withdrawals or transfers may point to financial abuse. Contesting such actions becomes necessary to ensure the estate reflects what the deceased truly intended and that beneficiaries receive their fair share.

Signs That Cash May Have Been Wrongly Taken

As a beneficiary, you might not immediately spot wrongdoing. However, common red flags may include:

• The deceased’s bank balance being unusually low at death.
• A sudden pattern of large withdrawals in the months before death.
• Unexplained gifts which benefit one person disproportionately.
• Records showing that an attorney or carer made transactions that served themselves.
• Family members refusing to disclose financial information.

If you notice these warning signs, it may be time to seek legal advice and consider making a claim.

Legal Remedies Available to Beneficiaries

If money has been wrongly taken, beneficiaries are not powerless. Several legal routes may be open, depending on the circumstances:

Recovery of Estate Assets

The executor (or administrator if there is no will) has a duty to recover assets that rightfully belong to the estate. Beneficiaries can apply to the court to force the executor to investigate and reclaim misappropriated funds.

Challenging Transactions Made Under a Power of Attorney

If the deceased had an LPA in place, the attorney was legally bound to act in their best interests. If they breached this duty by taking cash for themselves, their actions can be challenged, and beneficiaries may be able to prove that those transactions are invalid.

Undue Influence and Lack of Capacity

If gifts or withdrawals occurred when the deceased lacked mental capacity, or where it seems the deceased had been pressured into giving money away, beneficiaries can argue that those transactions should be reversed.

Claims for Breach of Fiduciary Duty

Attorneys, executors, and trustees have fiduciary duties. If they abused their position of trust, beneficiaries can bring claims for breach of duty and seek restitution.

What Can You Do as a Beneficiary?

If you suspect that someone wrongly took money before death, here are the next practical steps you should consider:

Step 1: Gather Evidence

Start by collecting as much information as possible. This may include:

• Bank statements.
• Records of withdrawals and transfers.
• Details of gifts or property sales.
• Witness accounts of the deceased’s mental capacity at the time.

Step 2: Request a Full Estate Inventory

Executors must provide beneficiaries with a clear account of estate assets. If something seems missing or undervalued, you can formally request explanations and documentation.

Step 3: Seek Independent Legal Advice

Engaging a solicitor experienced in contentious probate is crucial. They can assess whether you have grounds for a claim, advise on evidence gathering, and represent your interests in negotiations or litigation.

Step 4: Consider Mediation

Not all disputes need to go to court. Mediation can be a cost-effective and less adversarial way of resolving disputes about estate assets. Many contentious probate cases settle through negotiation.

Step 5: Court Proceedings

However, if resolution is not possible, court action may be necessary. This could involve seeking an order to set aside invalid transactions, compel repayment to the estate, or even remove executors who fail in their duties.

Time Limits to Keep in Mind

Claims relating to wrongful transactions are subject to time limits. For example:

• Claims against attorneys may need to be brought within six years.
• If fraud is involved, time limits may extend.
• Probate claims should be raised as soon as possible to avoid delays in estate distribution.

Beneficiaries should act quickly once they suspect wrongdoing. Delay may make recovery harder and more costly.

FAQs About Wrongfully Taken Cash Before Death

Can you recover money that was taken from the estate before death?

Yes. Beneficiaries can challenge suspicious transactions, especially if they involve misuse of a Power of Attorney, undue influence, or a lack of mental capacity. Courts can order repayment into the estate.

What if the person who took the money was an attorney under a Power of Attorney?

Attorneys must act in the donor’s best interests. If they acted dishonestly or beyond their authority, their actions can be challenged. Beneficiaries may pursue claims for breach of fiduciary duty.

How do I prove cash was wrongly taken?

Evidence is key. Bank statements, records of transfers, witness testimony, and medical evidence about the deceased’s capacity can all help prove a claim. Solicitors can also obtain disclosure orders for financial records.

Is there a time limit for making a claim?

Yes. Most claims must be brought within six years, but the time limit can vary. If fraud is involved, the courts may allow more time. Seek legal advice as early as possible.

Will making a claim delay probate?

Yes, it can. Contentious probate proceedings usually pause the distribution of the estate until the dispute is resolved. However, this protects beneficiaries from losing their rightful inheritance.

Why Acting Matters

Ignoring wrongful withdrawals or missing assets following a loved one’s death can result in you permanently losing part of their inheritance. Contentious probate may feel daunting, but with the right legal support, you can recover wrongly taken assets and restore fairness to the estate distribution.

Getting legal advice on what to do next is an important step. Our panel of law firms with extensive experience in probate claims will give you the support and understanding you need at this difficult time. 

Call us at 0333 358 3034 for a free no-obligation chat or visit Jefferies Claims Contact Us Page.

We offer a range of fee structures, including ‘No Win, No Fee’ for certain cases along with other flexible funding – speak to our team to find out more.