Executor Disputes in Estate Litigation

Executor Disputes in Estate Litigation

When someone passes away, the responsibility of administering their estate falls to an executor—trusted individual/s appointed by the deceased to carry out their final wishes. However, the role of an executor is not without challenges, and disputes can arise between executors, beneficiaries, or even co-executors. In New South Wales, these executor disputes are a common cause of estate litigation.

What Is an Executor’s Role?

An executor is legally responsible for managing and distributing the deceased’s estate according to the will. Some of an executor’s tasks include:

  • Gathering and valuing the estate’s assets
  • Paying any outstanding debts or taxes
  • Distributing the remaining assets to beneficiaries

While these tasks might seem straightforward, executors can encounter complications, especially if the will is unclear, the assets are complex, or relationships between beneficiaries are strained.

Common Reasons for Executor Disputes

Executor disputes arise for various reasons, often tied to how the executor performs their duties or the relationships between those involved in the estate. Here are some common causes:

Breach of duty: Executors have a legal obligation to act in the best interests of the estate and its beneficiaries. A breach of this duty, whether through mismanagement, lack of transparency, or acting in self-interest, can lead to litigation.

Delays in estate administration: Executors are expected to manage the estate efficiently. If they delay distributing assets or fail to settle debts in a timely manner, beneficiaries may seek legal action.

Conflict of interest: If an executor is also a beneficiary, conflicts of interest may arise, particularly if they are perceived to be prioritising their own interests over those of other beneficiaries.

Disagreements between co-executors: It’s not uncommon for more than one executor to be appointed. However, when co-executors cannot agree on how to manage the estate, disputes arise, sometimes leading to one executor being removed by court order or the court removing all executors and appointing an independent person, often an experienced solicitor, to act in their place.

Challenges to the validity of the will: Disputes may arise if beneficiaries or other interested parties believe that the will is invalid, such as in cases involving claims of undue influence or lack of mental capacity. Executors may be drawn into litigation to defend the will or navigate these challenges.

 

How are executor disputes resolved?

Executor disputes can often be resolved without resorting to litigation, but in some cases, court intervention is necessary. Here are the common methods of resolving executor disputes:

 

Mediation: Mediation is a popular alternative to court proceedings. It allows parties to engage in open discussions facilitated by a neutral mediator, helping them find a mutually agreeable solution. Mediation is typically quicker, less expensive, and less adversarial than litigation.

Removal of executor: If an executor is found to have breached their duties or is unfit to continue in their role, the court can order their removal and appoint a replacement. This is a serious step and generally considered a last resort when other resolutions fail.

Court orders: In some cases, beneficiaries or co-executors may seek a court order to resolve specific disputes, such as compelling an executor to provide an accounting of the estate’s assets or making decisions about the distribution of the estate.

Executor renunciation: An executor may choose to renounce their role if they feel unable or unwilling to carry out their duties. This can be a way to avoid prolonged disputes and allow another individual or professional to take over the administration of the estate.

 

At Tonkin Drysdale Partners, we understand the sensitive nature of executor disputes and are experienced in resolving these conflicts efficiently and effectively. Our Estate Litigation team can provide expert legal advice to both executors and beneficiaries, whether through mediation or court proceedings, ensuring that the estate is administered fairly and according to the deceased’s wishes.

If you are facing an executor dispute or estate litigation challenge, contact us today to discuss how we can assist you.