What would be the situation under the bank’s two point security process? An amount was transferred on line by the donor from a savings account to his cheque account and
a cheque issued on Friday and paid into the partner’s account as a gift. on Monday, the donor didn’t respond to a call from his bank asking him to verify the cheque as he was in a hospice and unable to use his mobile phone. The cheque was returned as possible fraud and the donor had died the next day. Has the gift failed or not?
Would the cheque have been cleared before the donor’s death were it not for the “two point security process”? If not, then I suggest it fails, full stop.
If the cheque would have cleared before the donor’s death, were it not for the “two point security process”, had the donor done all in their power to complete the gift? This looks to be fertile ground for new case law. Hopefully, though, the partner and the personal representatives/beneficiaries of the donor’s estate can come to an amicable resolution without the need to resort to the law.
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals
The cheque was paid in on the Monday to Nat West, who operate a one day clearing system. The donor died on Wednesday morning so in “normal” circumstances the cheque would have cleared. The beneficiaries are not cooperating and insist the money is theirs. The amount represents 95% of cash in the estate and I assume that if I resort to law, then this money would be available for my costs.
Technically, it is for the claimant to prove their case.
I therefore suggest that it is for the partner to obtain a legal opinion in support of their claim, and then for the executor to consider that claim, obtaining such further advice as may be necessary to identify if the claim is well founded.
The executor’s costs of considering the claim would normally be a valid estate expense.
If the amount is significant, the partner might want to pursue the matter through the courts, in which case it will be for the court to decide where the various parties’ costs fall.
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals
I am asking the family solicitor to arrange an opinion on the case. I am hoping that the knowledge you have provided will assist the partner to receive the intended gift.