What to do when valuable items have gone missing during probate

When someone dies, executors are responsible for identifying, protecting and accounting for the assets that form part of the estate. Whilst this usually focuses on property, bank accounts and investments, disputes frequently arise over valuable personal possessions such as jewellery, watches, cash, artwork, antiques and family heirlooms.

Where items appear to have gone missing shortly before or following a death, tensions can quickly develop between family members and other individuals who may have had access to the residence of a person who has died. Executors can find themselves in a difficult position, balancing their legal duties with the need to manage sensitive family relationships.

It is not uncommon for concerns to arise where valuable items such as jewellery, cash, watches or family heirlooms cannot be found after someone has died, more people receiving care at home and increasing use of key safes, it is often the case that a number of different individuals may have had access to a property, including family members, carers, cleaners, neighbours and tradespeople.

In some situations, there is an entirely innocent explanation for a missing item, but where assets cannot be accounted for, executors have a duty to investigate and take reasonable steps to protect the estate. Acting promptly can be important, as delays may make it harder to establish what has happened to an item and can increase the risk of a dispute.

Understanding the steps that should be taken at an early stage can help protect estate assets and reduce the risk of a costly dispute later on.

In this blog we highlight some of the key issues executors should be aware of.

The executor’s responsibility

An executor has a legal duty to identify, collect and safeguard all assets belonging to the estate.

This responsibility begins from the date of death and applies even before a Grant of Probate has been obtained. Executors should take reasonable steps to secure property, preserve important documents and establish the assets of the estate.

Acting promptly is often crucial. The longer valuable items remain unaccounted for, the more difficult it can become to determine what has happened to them and who may have had access.

Commonly disputed items

Whilst financial assets are usually easier to trace through bank statements and records, personal possessions can be far more problematic.

Commonly disputed items include jewellery and watches, antiques and collectables, artwork and valuable ornaments, family heirlooms and sentimental possessions with little financial value but significant emotional importance.

Disagreements often arise because family members have differing understandings of who should receive certain items or whether a loved one made informal promises during their lifetime.

Concerns about missing assets

Executors sometimes discover that items known to have belonged to a loved one cannot be located after death.

In some cases, there may be an innocent explanation. The item may have been gifted during the person's lifetime, moved for safekeeping or simply misplaced.

Where an item has been gifted before death, executors should make reasonable enquiries about when the gift was made and its value. Gifts made during the seven years before death may need to be taken into account for inheritance tax purposes and, in some circumstances, could affect the inheritance tax position of the estate. It is therefore important that executors obtain sufficient information to ensure that any reporting obligations are properly dealt with.

However, where valuable assets appear to have been removed without authority, executors should take the matter seriously and begin gathering information as soon as possible.

This may involve reviewing photographs, insurance schedules, valuations, financial records and correspondence, as well as speaking with family members and others who had regular contact with the person during their life.

Access to property after death

One issue that frequently arises is determining who had access to a loved one’s home and belongings.

Family members may hold keys or have been assisting their elderly relative before death. Increasingly, there may also be a wider group of individuals with access to the property, including carers, cleaners, neighbours, tradespeople or others who have been provided with key safe or key box codes.

Whilst the existence of access does not mean wrongdoing has occurred, it can make it more difficult to establish what happened to missing items if concerns later arise.

Executors should consider securing the property as soon as possible and, changing locks or key box codes to prevent unauthorised access.

Record keeping and inventories

One of the most effective ways to minimise disputes is to prepare a clear inventory of estate assets at an early stage.

Executors should record the contents of the property and, where appropriate, take photographs of rooms and valuable items. Existing valuations, receipts, insurance records and photographs can also be useful evidence.

Maintaining accurate records helps demonstrate that the executor has acted appropriately and can provide valuable evidence if questions are raised later by beneficiaries or other interested parties.

Disputes between beneficiaries

Allegations that items have gone missing can quickly damage family relationships.

Beneficiaries may suspect one another of removing possessions, particularly where there are long-standing family tensions or disagreements regarding the estate.

These disputes can delay the administration of the estate, increase legal costs and, in some cases, lead to contested probate proceedings. The emotional impact on those involved can also be significant.

Where concerns arise, it is often beneficial to seek independent legal advice before positions become entrenched.

Recovering missing assets

Where there is evidence that estate property has been removed or retained by another person, executors may be able to take steps to recover the assets.

The appropriate course of action will depend on the circumstances and may involve requesting information, seeking the return of property or investigating transactions that occurred before death.

In more serious cases, court proceedings may be necessary to recover estate assets or determine ownership of disputed items.

Early action is often important, particularly where evidence may be lost or assets could be sold, transferred or otherwise disposed of.

The importance of early legal advice

Executors can face difficult decisions where valuable items appear to be missing.

Obtaining legal advice at an early stage can help ensure that appropriate steps are taken to protect estate assets, preserve evidence and comply with the executor's duties.

Prompt intervention can often prevent disputes from escalating and improve the prospects of reaching a practical resolution for all concerned.

How we can help

Our private client team advises executors on their duties and responsibilities where concerns arise regarding missing estate assets.

For advice about any aspect of estate administration, please contact a legal adviser in our private client team at York, Selby, Malton or Pickering.

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.