When someone dies, their assets are usually distributed according to their will. The person responsible for managing and distributing these assets is the “executor” of the deceased estate. In some cases, a will appoints more than one person to act in this role. Ideally, these individuals work cooperatively to execute their duties. However, executor disputes can arise during the administration process, complicating the settlement of the estate.
As with any complex and potentially emotional task, the administration of a deceased estate can give rise to conflict and disagreements. This is particularly true when executors are also beneficiaries of the estate. Consequently, their administrative decisions impact their inheritance under the will. Because of these competing interests, resolving executor disputes early is essential to prevent costly delays.
Common causes of disputes between executors
Of course, disputes between executors can arise for any number of reasons, including simple personality clashes. However, some scenarios arise commonly. These include:
Disputes over the meaning of the will
Disputes can arise if the executors disagree over the interpretation or validity of the deceased’s will. Some common issues that may arise include:
- If the will is unclear or ambiguous, the executors may have different interpretations of the deceased’s intentions.
- If one executor believes that the will is invalid and the other does not, they may challenge it in court.
- If the will does not specify how the assets should be distributed, the executors may disagree on how to divide them.
Disagreements over estate management
In some cases, executors may disagree over how to manage the estate during the administration period. For instance:
- One executor may believe that assets should be sold to generate funds for the estate, while the other executor might disagree.
- Executors may have different opinions about whether certain debts should be paid off before assets of the estate are distributed.
- One executor may wish to hire a professional (such as a lawyer or accountant) to assist with the estate, while the other executor does not wish to incur the expense.
Disagreements over the distribution of assets
In some cases, executors can disagree over how to distribute the assets of the estate. This may happen because:
- Executors have different views about the worth of particular assets.
- One executor believes that a particular asset should go to a certain beneficiary, while the other executor disagrees.
How to avoid disputes
It is far better to avoid a dispute in the first place, rather than try and resolve a dispute after it has become entrenched. Here are some tips for executors to help prevent a dispute:
Comparison of Dispute Resolution Methods
| Method | Key Benefit |
|---|---|
| Impartiality | Builds trust and ensures decisions are fair and reasonable. |
| Mediation | Cost-effective, neutral third-party negotiation. |
| Legal Advice | Provides professional guidance on rights and obligations. |
Maintain Impartiality and Communication
As an executor, you have a duty to act impartially and in the best interests of the estate. You should avoid any conflicts of interest and make decisions that are fair. By acting impartially, you can help build trust with the other executors. Furthermore, effective communication is vital. Disputes often arise because one executor has different expectations about how communications should occur. Maintaining transparency ensures everyone is on the same page.
Keep accurate records
Keeping accurate records of all estate transactions can help prevent misunderstandings. You should keep a record of all communications, decisions, and financial transactions. Additionally, make sure that all executors have access to these records. This transparency can prevent disputes from arising in the future.
Managing an active dispute
Once a dispute arises, it can be challenging to continue the estate administration. However, there are steps you can take to move forward:
- Identify the source: Understanding the underlying cause of the disagreement is the first step toward a resolution.
- Seek legal advice: A lawyer with experience in estate administration can provide guidance. Often, parties are happy to follow the decision of a neutral third party.
- Consider mediation: This involves a neutral third party working with both sides to reach a solution. It is often less confrontational than court.
- Consider removing an executor: If one executor causes significant problems, you may need to remove them via court order. This should only be a last resort.
Conclusion
The administration of a deceased estate is a complex task that can give rise to conflict. An experienced lawyer can help you understand your rights and obligations. If you are struggling with a co-executor, our legal team is here to help.
This is general information only. Therefore, you should obtain professional advice relevant to your circumstances. If you or someone you know needs help or advice, please call our Raymond Terrace office on (02) 4987 3344 or email [email protected].