What is an executor?
An executor is someone who is appointed in a will to carry out the administration of somebody’s estate after they have died. If there is no will, then the person who carries out this role is known as an administrator (and the intestacy rules set out who is entitled to act). Executors and administrators can also be referred to as ‘personal representatives’.
What are the main duties of an executor?
The main duty of an executor is to collect in the estate assets of the person who has died (the deceased), pay off any liabilities or debts and administer the estate according to the law. This duty is set out in section 25(a) of the Administration of Estates Act 1925. Collecting in the deceased’s estate might involve closing down bank accounts, selling shares, selling personal possessions and selling a house or other properties. The executor will also need to pay any debts or liabilities of the estate, which might include funeral costs, outstanding bills from the deceased’s lifetime and tax. The executor should then distribute, or pay out, the estate in accordance with the terms of the will. If there is no will then the intestacy rules will set out who is entitled to inherit. The people who are entitled to inherit under a will (or under the intestacy rules) are known as beneficiaries.
An executor should keep an account of the estate administration, and should provide this to the beneficiaries if requested. This should include records of the assets and liabilities of the estate at the date of the deceased’s death, and a record of what has happened since then, for example which assets have been sold, and what expenses have been paid. Whilst this is the general position, it is important to note that the situation could be different depending on the terms of the will (for example if the will gives the executor an element of discretion as to whether or not certain people should inherit).
How can disputes arise between executors and beneficiaries?
Disputes between executors and beneficiaries often arise when executors either don’t keep beneficiaries updated or refuse to provide them with information when requested. These types of disputes are relatively common, and research published by The Times shows that the number of High Court claims against executors in England and Wales has grown by more than 20% over the past 12 months.
If you are a beneficiary of an estate and you are worried that the executor isn’t carrying out their role properly then the first step is usually to write to the executor setting out their duties and requesting information about what has happened in the estate administration so far, and what remains to be done before the estate can be distributed. If the executor refuses to provide information, or if the information appears to be incorrect or incomplete, then you can make an application to the Court for the executor to give an account. The executor will then need to set out the assets and liabilities of the estate and payments into and out of the estate since the deceased’s death. Sometimes there will be disputes about certain items in the account (perhaps because expenses are higher than expected or because the executor has included expenses which they shouldn’t have done). In these cases, the Court can be asked to make a decision about the disputed items in the account. In some cases, it may also be necessary to ask the Court to make an order removing the executor from their role.
If you are concerned that an executor isn’t carrying out their role properly then please get in touch and one of our private wealth disputes team will be happy to speak with you.