When someone dies, their assets are distributed according to the terms of their will. The executor of the deceased estate is responsible for managing and distributing those assets. Executors must identify and collect estate assets, pay outstanding debts, and distribute the remaining assets according to the will.
Some wills appoint multiple executors to manage the estate. These individuals must work together to complete their duties and ensure the estate is administered correctly. Each executor must act in the best interests of the estate and comply with their legal obligations throughout the administration process.
Administering a deceased estate can be complex and emotional. Disagreements may arise when executors have different opinions about how the estate should be managed. This can become particularly challenging when executors are also beneficiaries and their decisions affect their own inheritance.
Common Causes of Deceased Estate Disputes Between Executors
Executor disputes can occur for many reasons, including differences in personality or communication styles. However, some issues arise more frequently than others. Common causes include:
Disputes over the meaning of the will
Executors may disagree about the interpretation or validity of a deceased person’s will. The wording of a will should clearly reflect the deceased person’s wishes, but disagreements can occur when terms are unclear or circumstances have changed since the document was prepared.
Under NSW law, disputes about the interpretation or validity of a will may need to be determined by the Supreme Court of NSW. The Court deals with probate matters, including disputes involving wills and deceased estates.
Common issues include:
- If the will contains unclear or ambiguous wording, executors may interpret the deceased’s intentions differently.
- If one executor believes the will is invalid and another disagrees, they may need to challenge the will in court.
- If the will does not clearly explain how assets should be distributed, executors may disagree about the appropriate approach.
Disagreements over the management of the estate
Executors may also disagree about how to manage estate assets during the administration period. They must make decisions that protect the estate and act in the best interests of beneficiaries.
Examples of disagreements may include:
- One executor believes assets should be sold to generate funds, while another executor wants to retain them.
- Executors have different opinions about which debts should be paid before distributing assets.
- One executor wants to engage a professional, such as a lawyer or accountant, while another does not want to incur the additional expense.
Executors who are unsure about their responsibilities can seek guidance from organisations such as NSW Trustee and Guardian, which provides information about wills, estates and the responsibilities involved in estate administration.
Disagreements over the distribution of assets
Executors may sometimes disagree about how estate assets should be distributed. These disputes may occur because:
- Executors have different opinions about the value of certain assets.
- One executor believes an asset should be given to a particular beneficiary, while another disagrees.
- Executors have different views about whether proposed distributions comply with the will.
How to Avoid Disputes Between Executors
Preventing disputes is usually easier than resolving them after conflict has developed. Executors can take several steps to reduce the risk of disagreements, including:
1. Act impartially
Executors have a duty to act impartially and protect the interests of the estate. They should avoid conflicts of interest and make decisions that are fair and reasonable for all beneficiaries.
Independent decision-making and avoiding favouritism can help build trust between co-executors and reduce the risk of disputes during estate administration.
2. Keep communicating
Many executor disputes develop because individuals have different expectations about communication. Poor communication, limited updates or decisions made without consultation can create unnecessary conflict.
Executors should communicate regularly, provide updates about important decisions, and remain transparent about estate finances and administration steps.
3. Keep accurate records
Accurate records can help prevent misunderstandings and disagreements. Executors should keep records of communications, decisions, expenses and financial transactions, while ensuring all executors can access relevant information.
Clear record keeping may also help if questions arise about how the estate was managed or whether executors have met their legal responsibilities.
Managing a Dispute Between Executors
Once a dispute develops, continuing the estate administration process can become difficult. However, several steps may help executors resolve disagreements and move forward.
Identify the source of the disagreement
The first step is understanding what caused the dispute. Identifying the underlying issue can help executors find a practical solution and resolve the conflict more effectively.
Seek legal advice
A lawyer experienced in deceased estates can explain the rights and responsibilities of executors and provide advice about resolving disputes.
Independent legal advice can be especially valuable when disagreements involve interpreting a will, managing estate assets, or concerns about an executor’s actions.
The Law Society of NSW provides information about finding qualified solicitors who can assist with legal matters, including estate disputes.
Consider mediation
Mediation can help executors resolve disputes without immediately commencing court proceedings. An independent mediator assists the parties to communicate and work towards an agreement.
This process can provide a less confrontational and more cost-effective way to address concerns while allowing each party to have their views considered.
Information about mediation and dispute resolution services is also available through Legal Aid NSW.
Consider removing an executor
If an executor creates ongoing difficulties and cannot resolve the issues with the other executors, removing them from the administration process may be necessary.
In some circumstances, the Supreme Court of NSW can make orders to remove or replace an executor. However, this option should generally only be considered as a last resort because it may increase costs, delays and conflict.
Get Legal Advice for Deceased Estate Disputes
Administering a deceased estate can be complicated, especially when disagreements occur between executors or beneficiaries. Understanding your obligations and obtaining early legal advice can help prevent disputes from escalating.
A lawyer experienced in deceased estates can explain your rights and responsibilities, provide guidance on resolving disputes, and represent you in court if required.
If you or someone you know needs advice about a deceased estate dispute, please contact us on (02) 9818 2888 or email [email protected].