High Court claims against executors in England and Wales have grown by more than 20 per cent over the past 12 months, according to research recently published by the Times.
While the total number of disputes remains quite low, it is believed that this is just the tip of the iceberg since most disputes are settled before they ever reach a courtroom.
The primary factors behind the spike in claims are identified as an increase in the number of blended families – where partners have their own children and another child or children from a previous relationship – and escalating property values. Many claims involve allegations of a breach of fiduciary duty, with executors failing to act in the best interests of the beneficiaries, often by distributing assets of a deceased person against the terms of the Will.
There has also seen a significant rise in the number of cases that involve disputes, both with and between executors. As indicated by the research, the increasing prevalence and popularity of blended families often arises from people living longer, having relationships in later life, more remarriages, an increased number of cohabitees, more stepchildren, adult children living at home. Similarly, as estates continue to increase in value, especially property prices – they fuel the potential for disputes to arise.
Although the research highlights these as the main causes of disputes, there are multiple potential contributory factors which may include:
- Inaction by Executors – It is a big responsibility, and some may be unable or reluctant to deal with the legal, financial, and administrative issues around probate, estate funds might be used as if they have already been inherited.
- Reluctance to leave – Occupants in a property owned by estate – cohabitees, spouses or adult children – do not want to leave. In this context, executors may have to take possession proceedings against them.
- Family executors personally estranged or in dispute with beneficiaries.
- Lack of understanding – People are often unfamiliar with their role as executors, their primary responsibility to the beneficiaries, and their duty to carry out the terms of the Will.
- Wills not being updated – Regrettably, failure to update Wills to allow for changing circumstances is all too common. We see cases with deceased executors, for example, and badly written wills may not include a substitute executor.
- Probate delays – These can lead to property maintenance costs and expenses – potentially, for a long time. Executor’s expenses can be a point of dispute, particularly if the executor is living in the property.
- Difficult circumstances – It can be very challenging if, for example, an executor does not inherit a property but remains living in it without paying rent.
- Moral views, particularly if there is a departure from the traditional, customary or expected position.
Disputes relating to Wills and estates can be further exacerbated by an executor who is also a beneficiary: a conflict exists between the two roles that can be hard to separate. Executors have to be neutral, whereas beneficiaries have a vested interest – people can get into difficulties when trying to juggle the two roles.
Warring executors can also ask the Court for directions on how to administer an estate or agree to appoint an independent administrator in their place. Executors should be aware that they can be removed or replaced and asked to repay any expenses. Similarly, if they do not seek appropriate indemnities, they could be personally liable for the costs of legal proceedings brought by, or against an estate.
Looking at all the contributory factors, the ongoing increase in disputes seems likely to continue rising for some time. Those who find themselves involved in a dispute should always seek independent legal advice. It is usually more cost effective to get expert advice as early as possible.
We, at Maplebrook Services, have relationships with lawyers who specialise in Contentious Estates and can advise and guide executors and beneficiaries with regards to disputes relating to an estate.
For further information or advice, please consult with a qualified Estate Planner at Maplebrook Services Ltd. Contact us at +357 26600780 or email [email protected]. Due to the Christmas holidays, we will not be holding our usual free Life Admin Clinic this month and would like to wish all readers Seasons Greetings and a wonderful, happy and healthy 2025.
