The first duty was to protect the inheritance.
Did my father fail to protect the children’s inheritance?
Question: Two years ago my father left a substantial inheritance to my brother’s young girls – that is, to his grandchildren. Recently my brother used all of it, plus some of his own money, to buy a holiday home abroad (he says there are good deals out there these days). Did my father fail to protect the children’s legacy? Was my brother’s action ethical, or did he cheat his children?
Trustee’s duties
It would appear your brother was appointed trustee under your father’s will, if so, his primary duty in this particular was to protect the interests of the beneficiary’s inheritance. Whatever his rationalization may be – that the whole family benefits from the holiday home, that the kids wanted to do it, that he’ll reimburse them someday – his what’s-yours-is-mine attitude toward his daughters’ inheritance is at first glance unethical and, not to put this too strongly, criminal. If your brother desperately needed to pay the electricity bill, that might be one thing. But raiding the girls’ nest eggs to buy a holiday home…
Beneficiaries’ interests
At the risk of rushing to judgement, it might have been in fact the case that his actions were in the best interests of the beneficiary that indeed the holiday properties were bought and held in trust for the minor beneficiaries. It would be difficult to arrive at a decision without knowing the terms of the transactions.
If you have designated your brother as the executor of your will, or made him a guardian of any minor children you might have [in the event of your death], you might be minded to revise your estate planning arrangements. We would be delighted to offer a no obligation chat on selection of executors and trustees.