Disputes Between Executors and Beneficiaries

Jenny Walsh

What are your rights?

When a loved one dies, their beneficiaries understandably want to settle their affairs and receive their inheritance as quickly as possible. The executor of the will is responsible for making that happen. Executor is the term for a person appointed within a will to administer an estate. If there is no will, those same duties will be assigned to an administrator. To keep things simple, we will be using the term executor for both roles in this guide.

Executors have various legal responsibilities. Broadly, their role is to realise the value of the estate, pay any debts and taxes, and then distribute the estate in accordance with the terms of the will or the rules of intestacy if someone dies without a will. The executor must follow the terms of the will or the agreed-upon wishes of all the beneficiaries and cannot simply act in their own best interests.

Friction can arise in two ways:

• Between executors and beneficiaries over how the estate administration is being handled, or
• Between two or more beneficiaries, for example, if one beneficiary wants to sell a property but another wants to live in it.

What is a dispute between a beneficiary and executor?

Administering an estate can take time. The larger and more complicated someone’s estate is, the longer it will take to collect in and potentially sell the assets before beneficiaries receive their inheritance.

This does not mean that something is wrong with the estate administration. But if there is failure to progress the estate without reasonable explanation, that’s usually when beneficiaries start asking questions.

Other areas of concern might be where an executor:

• Appears to be doing nothing
• Ignores the will and deals with the estate in their own way
• Has misinterpreted the will
• Fails to show their records and accounts
• Refuses to communicate with the beneficiaries
• Sells assets for less than their market value without reason
• Charges excessive fees (if they are a professional executor)
• Steals or misuses estate assets

What rights do beneficiaries have if they are unhappy with the executor?

Various options are available. For example, the Court can:

• Order executors to provide an accounting of their actions and financial transactions.
• Give directions on how executors should act.
• Have them make up for any financial losses caused by their actions.
• For serious breaches, the ultimate remedy is to have the executor removed and replaced by a competent person.

However, the Court will not remove an executor simply because the beneficiaries are unhappy with their performance. The Court will only interfere if it is satisfied that there has been a serious breach of duty by the executor, or multiple incidences of poor conduct, and that the removal is necessary for the proper administration of the estate.

Before issuing proceedings, beneficiaries should put the executor(s) on notice of their concerns and ask for an explanation. In most cases, the parties will be able to reach a resolution without having to go to Court. Often, the executor would prefer not to act, in which case they can renounce their position as long as they have not ‘intermeddled’ in the estate (i.e. they haven’t carried out any of their jobs as an executor yet). Or they may pass the baton to their co-executor to deal with the administration, while not technically standing down.

Our contentious probate team has found creative ways to resolve all manner of beneficiary/ executor disputes. We act for both executors and beneficiaries and can offer sensible, practical advice.

What rights do executors have when dealing with difficult beneficiaries?

Some beneficiaries may have unrealistic expectations about the winding up of an estate or mistrust the executor’s intentions. Issues like these can usually be resolved through better communication. It’s important for executors to keep detailed records of their actions as evidence of their diligent and honest work. In some cases, executors may need to seek legal advice to protect themselves from any unfounded accusations.

It is good practice for executors to get written consent from beneficiaries for major decisions, like selling the family home. However, beneficiaries can be uncooperative, even when it comes to accepting their inheritance. One possible solution is to apply to the Court for directions about what to do next. For example, you could ask the Court to determine what should happen to that share of the estate if a beneficiary fails to accept it, or when there is uncertainty about the terms of a will.

In some cases, beneficiaries may contest the will. Executors must not take sides in these disputes – their duty is to remain neutral. The best course of action is to seek legal advice from a probate lawyer to understand your position.

What is a dispute between beneficiaries?

When beneficiaries fall out during an estate’s administration, it is referred to as a “beneficiary dispute.” This can happen for any number of reasons, but examples include:

• Disagreement over the terms of the will and what the deceased really wanted.
• Disagreement on whether the executors are administering the estate properly.
• Disagreement over whether an asset is part of the estate.
• Claims to a greater share of the estate than the will states.
• Conflicting opinions on selling the deceased’s property.
• The beneficiaries wish to vary the terms of the deceased’s will but cannot agree on how.

Executors are often caught in the crossfire when these disputes arise. They can only act on instructions that all beneficiaries have agreed on. If the beneficiaries are at loggerheads, the best response is to seek advice from a contentious probate solicitor to find an appropriate resolution. We help both benefactors and executors achieve their goals and ensure the will is executed as intended.

• You may also be interested in reading: What Rights Does a Beneficiary of a Will Have?

Can a beneficiary stop the sale of a property?

If the will is clear that a property must be sold or gifted to a named person, then a beneficiary cannot stop the sale unless all the other beneficiaries agree to vary the terms of the will. Even if the will is silent, it may be that the probate property must be sold to pay the liabilities of the estate. In this scenario, there will be little the beneficiaries can do to stop it.

However, beneficiaries often come to blows over whether the family home should be sold when there is no need to sell it, and one of the beneficiaries would rather inherit the property than cash. This raises a host of issues for the beneficiaries:

• Should the property pass to the beneficiary who wants to keep it?
• What’s the value of the property?
• How will the value be balanced with the other beneficiaries?
• What happens to the contents of the property?
• What about future increases in value?

Emotions tend to run high in these types of disputes, so it’s important to consult a specialist solicitor who can help take away the heat. Our team can help you negotiate with the other beneficiaries and come to an agreement that benefits all parties involved.

How are beneficiary disputes resolved?

Beneficiaries often do not want to damage family relationships, especially in sensitive situations such as the death of a loved one. Therefore, legal action is often seen as a last resort. Many disputes between executors and beneficiaries, or between two or more beneficiaries, can be resolved through non-court dispute resolution techniques.

Solicitor-guided negotiation is often the best first option, and probate mediation can help you reach a mutually acceptable solution in a calm and controlled environment.

Ultimately, if the beneficiaries and executors cannot agree, one of them may need to apply to the Court for an order directing how the estate should be dealt with.

• Related reading: Trust Disputes

Need expert guidance?

If you are a beneficiary or executor and need help with a dispute, our probate solicitors are here to assist you. We help clients with all kinds of complex disputes and handle each case with care and practical advice, making sure their loved one’s estate is managed the right way. To speak with one of our solicitors, contact us by:

• Filling in our online enquiry form; or
• Calling us on 020 7485 8811