Understanding the Role of an Executor
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. Sometimes, a will appoints more than one executor, and these individuals need to work together to carry out the role.
Administering a deceased estate can be complex and emotional. Conflict and disagreements can arise, particularly when executors are also beneficiaries. Their administrative decisions can directly affect their inheritance under the will.
Common Causes of Disputes Between Executors
Disputes between executors may arise for many reasons, including personality clashes. Some scenarios, however, are more common. These include the following categories.
Disputes Over the Meaning of the Will
Executors may disagree about the interpretation or validity of the deceased’s will. Some common issues include:
- If the will is unclear or ambiguous, executors may interpret the deceased’s intentions differently.
- If one executor believes the will is invalid and the other does not, they may challenge it in court.
- If the will does not specify how assets should be distributed, executors may disagree on dividing them.
Disagreements Over the Management of the Estate
Executors may have different views on managing the estate during administration. For example:
- One executor may want to sell assets to generate estate funds, while the other disagrees.
- Executors may disagree on paying certain debts before distributing estate assets.
- One executor may wish to hire a professional such as a lawyer or accountant, while the other does not want to incur extra costs.
Disagreements Over the Distribution of Assets
Executors may also disagree about distributing estate assets. Reasons include:
- Executors have different opinions on the value of certain assets.
- One executor believes an asset should go to a specific beneficiary, while the other disagrees.
How to Avoid Disputes
It is better to prevent disputes than to resolve them after they escalate. Executors can follow these tips to reduce conflict.
Act Impartially
Executors must act impartially and in the estate’s best interests. Avoid conflicts of interest and make fair, reasonable decisions. Impartial action builds trust with co-executors and helps prevent disputes.
Keep Communicating
Disagreements often arise due to poor communication. One executor may make decisions without consulting the other or without full transparency. Regular and open communication reduces misunderstandings and conflict.
Keep Accurate Records
Maintaining detailed records of estate transactions can prevent disputes. Executors should document all communications, decisions, and financial transactions. Ensuring all executors have access to these records keeps everyone on the same page.
Managing a Dispute
If a dispute occurs, administering the estate becomes challenging. There are steps to resolve the issue and continue the process smoothly.
Identify the Source of the Disagreement
First, identify the cause of the disagreement. Understanding the underlying issue helps guide resolution.
Seek Legal Advice
A lawyer experienced in estate administration can advise on managing disputes. Often, both parties accept guidance from a neutral third party.
Consider Mediation
Mediation involves a neutral third party working with both sides to reach a mutually acceptable solution. It is usually less confrontational and more cost-effective than court proceedings and ensures all parties’ interests are considered.
Consider Removing an Executor
If an executor causes significant problems and refuses to cooperate, removal may be necessary. In some cases, the court can order an executor’s removal. This should be a last resort, as it can create further disputes and delays.
Conclusion
Administering a deceased estate can be complex and emotional. Conflicts between executors may arise. A lawyer can help you understand your rights and obligations and represent you in court if needed.
This information is general in nature. Obtain professional advice relevant to your circumstances. If you or someone you know needs more information or help, please call 02 6621 2481 or email [email protected].