Elder financial abuse – Can you recover missing assets after death?

Financial abuse of the elderly is becoming increasingly common, and one key driver is the growing gap in intergenerational wealth.

A March 2025 parliamentary report on wealth in Great Britain highlighted this widening divide: since the 2008 financial crisis, median wealth for people in their 60s has risen by 55% in real terms, while for those in their 30s it has dropped by 34%. Such inequality can strain family relationships, which may help explain why family members are often the perpetrators of financial abuse.

What is financial abuse?

The Care Act 2014 defines financial abuse as having money or other property stolen, being defrauded, being put under pressure in relation to money or property, and having money or property, and having money or property misused. This includes theft, fraud, internet scamming, coercion regarding financial matters, and the improper use of property, possessions, or benefits. This can include:

• Misappropriation of money or assets
• Misuse of assets
• Being coerced to gift or transfer assets
• Theft

Missing inheritance? What can be done?

In a lot of cases, financial abuse comes to light after the death of a relative. It is the responsibility of the executors to conduct a full investigation into the assets and liabilities of the estate. The executors are often notified by the beneficiaries that the estate is a lot less than what was expected. Some common examples can include:

• A property which everyone thought belonged to the deceased was actually transferred into someone else’s name during the deceased’s lifetime.
• The deceased’s bank accounts have significantly less funds in them then what was expected or communicated to the family.

Any enquiries carried out by the executors must be reasonable, proportionate and in the best interests of the estate. There must be reasonable grounds for suspecting any wrongdoing and the wrongdoing should be relevant to the value of the estate.

Executors must remain neutral when dealing with any aspect of the estate administration process. Generally speaking, if court proceedings are issued and the executors remain neutral throughout, they are entitled to their costs from the estate. If executors are in breach of their neutrality, then any costs incurred won’t be paid by the estate and they maybe personally liable to pay their costs.

Sometimes an executor(s) can be accused of misappropriating assets which places them in a natural position of conflict. If this occurs, then in some cases it is appropriate for them to step down and an independent executor appointed to carry out the investigations.

Assets misappropriated during the deceased’s lifetime?

People are free to gift money or assets during their lifetime. These decisions must be made freely and independently. For gifts to be valid the deceased must for example, have mental capacity to make the gift and/or must not have been coerced by anyone at the time.

If they did lack capacity, then the transaction maybe overturned, and the recipient may be ordered to transfer the asset(s) back into the estate. The executor will usually begin their investigations by obtaining the deceased’s bank statements and any Property and Finance Lasting Powers of Attorney which may have existed during the deceased’s lifetime.

Similarly, a transaction can be set aside if a person was unduly influenced into making a lifetime gift.

The test for whether undue influence was present when the gift was made is often split into two categories:

1. Actual undue influence – This occurs when there is evidence that donor was subject to direct pressure, such as threats or blackmail. The focus is on the behaviour of the perpetrator. The person alleging the undue influence must prove it.
2. Presumed undue influence – The focus here is on the nature of the relationship between the perpetrator and the deceased. Where it has be established that there is a relationship of trust and confidence between parties such as parent and child or solicitor and client, it will be presumed that the dominant person has taken advantage of the vulnerable person. Furthermore, the transaction must call for an explanation. If these two factors are satisfied, then the dominant person must prove that no undue influence took place.

Assets taken after death

After a loved one has died, emotions are running high.

The deceased may have promised property to someone during their lifetime, but this promise is not reflected in their will or under the intestacy rules. People who have access to the deceased’s property may take items like cash, jewellery, art or pieces of furniture without telling other members of the family because they wrongly believe they are entitled to do so.

It is the executor’s responsibility to ensure all property is secure and the deceased’s estate is distributed in accordance with their will or the rules of intestacy. If items have been taken, then these should be returned the executor immediately.

If any items that were taken have been sold, then the person who took them will be required to reimburse the estate in cash. This can be deducted from their share in the estate if they are a beneficiary, or they may be ordered to pay the estate from their own personal funds.

If you are an executor and have been put on notice that assets have gone missing, or you are a beneficiary and you are concerned about the value of the deceased’s estate then it is important you act quickly. It is crucial to seek independent legal advice as soon as you suspect, or have been made aware of any missing assets.

This article was written by Samantha Hirst, part of our Inheritance, Trusts & Estate Disputes team.