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 as executor, and these individuals normally need to work cooperatively to execute the duties of the role.

As with any complex and potentially emotional task, the administration of a deceased estate can give rise to executor disputes and disagreements. This is particularly true when executors are also beneficiaries of the estate, and their administrative decisions impact their inheritance under the will.

Common causes of executor disputes

Disputes between executors can arise for any number of reasons, including personality clashes. However, some scenarios are common. These include:

Disputes over the meaning of the will

Disputes can arise if executors disagree over the interpretation or validity of the deceased’s will. Some common issues 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 the management of the estate

Executors may disagree on how to manage the estate during administration. For instance:

• One executor may believe assets should be sold to generate funds, while the other disagrees.
• Executors may have different opinions about whether debts should be paid 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 the cost.

Disagreements over asset distribution

Executors can disagree on asset distribution because:

• Executors have different views on the value of particular assets.
• One executor believes an asset should go to a specific beneficiary, while the other disagrees.

How to avoid executor disputes

It is better to prevent disputes than resolve them after they become entrenched. Here are tips for executors to help prevent conflicts:

Act impartially

Executors must act impartially and in the best interests of the estate. Avoid conflicts of interest and make decisions that are fair and reasonable. Acting impartially builds trust and reduces disputes.

Keep communicating

Disputes often arise from poor communication. Ensure all executors are informed about decisions, financial transactions, and estate administration activities to prevent misunderstandings.

Keep accurate records

Maintain records of all communications, decisions, and financial transactions. Share access with all executors to ensure everyone is on the same page and prevent future conflicts.

Managing an executor dispute

Once a dispute arises, estate administration can become challenging. Steps to manage disputes include:

Identify the source of the disagreement

Understanding the root cause of the dispute is the first step in finding a resolution.

Seek legal advice

An experienced estate lawyer can guide you through executor disputes and help both parties follow the advice of a neutral third party if needed.

Consider mediation

Mediation involves a neutral third party helping executors reach a mutually acceptable solution. It can be less confrontational, more cost-effective, and ensure all interests are considered.

Consider removing an executor

If an executor causes significant problems and cannot cooperate, removing them via a court order may be necessary. This should be a last resort as it may cause further delays or disputes.

Conclusion

Administering a deceased estate can lead to executor disputes and conflicts. A lawyer can help you understand your rights and obligations as an executor and represent you if required.

This information is general only. Obtain professional advice for your circumstances. For assistance, call 07 5495 2608 or email [email protected].