The role of an executor is critical in the administration of a deceased estate. Executors are responsible for managing the estate according to the terms of the Will and in accordance with the law. However, disputes involving executors are increasingly common — and can significantly delay or derail the administration of an estate.
In this article, we explore the most common causes of executor disputes in New South Wales, the legal options available to beneficiaries and co-executors, and how to resolve these matters efficiently.
What Is an Executor?
An executor is the person appointed in a Will to carry out the deceased’s final wishes and administer the estate. Their duties include:
- Applying for probate
- Identifying and collecting assets
- Paying debts and taxes
- Distributing the estate to beneficiaries
An executor is a fiduciary and must act honestly, impartially, and in the best interests of the estate and its beneficiaries.
Common Causes of Executor Disputes
Disputes may arise between:
- Beneficiaries and the executor, or
- Co-executors themselves
Below are the most frequent causes of conflict.
1. Delay in Administering the Estate
Executors are expected to act within a reasonable timeframe. If they fail to:
- Apply for probate
- Communicate with beneficiaries
- Finalise the estate within 12–18 months (often referred to as “the executor’s year”)
then beneficiaries may become frustrated and seek to have the executor removed or compelled to act.
Legal Remedy: A beneficiary may apply to the Supreme Court of NSW to seek orders requiring the executor to carry out their duties or for removal and substitution.
2. Conflict of Interest or Bias
An executor must not allow personal interests or relationships to influence their duties. Disputes commonly arise where:
- The executor is also a beneficiary and favours their own interests
- The executor has a strained or hostile relationship with other beneficiaries
- There is suspicion the executor is withholding information or assets
Example: An adult child acting as executor excludes estranged siblings from estate decisions or delays distribution unfairly.
3. Lack of Transparency and Communication
Executors are not required to give beneficiaries constant updates, but they must act transparently and provide relevant information upon request. Disputes often begin when beneficiaries:
- Are left in the dark about timelines or estate value
- Suspect the executor is hiding information or mismanaging funds
- Cannot obtain a clear accounting of estate expenses or distributions
Best Practice: Regular updates and timely communication can prevent unnecessary suspicion or claims of mismanagement.
4. Mismanagement of Estate Assets
Executors must protect the estate and avoid financial loss. Claims of negligence or mismanagement may arise where the executor:
- Fails to insure or maintain estate property
- Delays property sales or sells assets below value
- Uses estate funds improperly
Legal Remedy: A beneficiary may seek compensation from the executor personally if the estate suffers financial loss due to poor administration.
5. Disagreements Between Co-Executors
Wills often appoint more than one executor (e.g. multiple siblings). While this is intended to ensure balance, it can lead to deadlock or dysfunction if:
- Co-executors disagree on key decisions
- One refuses to act or communicates poorly
- There is a lack of trust or personal animosity
Solution: If co-executors cannot work together, one may apply to the Court to resign or to have a co-executor removed, or the Court may order the appointment of an independent administrator.
6. Executor Failing to Disclose a Conflict of Interest
An executor who has a personal or financial interest in estate matters must disclose it. Failing to do so can undermine their role and lead to court intervention.
Examples:
- The executor purchases estate property at undervalue
- The executor was involved in business dealings with the deceased
- The executor is in a disputed relationship with a beneficiary or creditor
7. Disputes Over Interpretation of the Will
Executors are responsible for interpreting and carrying out the terms of the Will — but sometimes those terms are unclear, ambiguous, or contradictory. Disputes may arise about:
- The meaning of a clause
- Entitlements under the Will
- Whether a specific gift has lapsed or failed
Legal Option: Executors may apply to the Court for judicial advice to interpret the Will or for directions on how to proceed.
Can an Executor Be Removed?
Yes. The Supreme Court may remove an executor if they:
- Are not acting appropriately
- Are unwilling or unable to act
- Have a conflict of interest affecting administration
- Have caused unreasonable delay or loss
The Court may appoint a replacement executor or an independent administrator to protect the estate and its beneficiaries.
Preventing Executor Disputes
- Choose executors carefully: The best person may not be the eldest child, but someone trustworthy and capable
- Keep estate planning documents clear and updated
- Maintain open communication: Both during estate planning and during administration
- Seek legal advice early to resolve issues before they escalate
Final Thoughts
Executor disputes are not uncommon in estate administration, especially where there is a history of family tension or complex estate assets. If you are a beneficiary concerned about an executor’s conduct — or an executor facing conflict or uncertainty — early legal advice is critical.
At Tonkin Drysdale Partners, we have deep experience acting in complex estate disputes, including executor removals, negligence claims, and fiduciary breaches. Our team works with clients across NSW to resolve estate matters efficiently and with minimal disruption.
