Executors: dealing with claims against the estate

As an executor or trustee you have certain obligations and responsibilities which you must carry out. These include collecting all assets, settling all debts and liabilities and distributing what is left to the beneficiaries.

If a claim against the estate is made or threatened, the executors cannot ignore this.

The role of executor or trustee is a difficult one. Whilst trying to act in the best interests of the beneficiaries or the trust, you may be leaving yourself open to personal liability and future problems.

There are clear rules relating to executors and trustees obligations, duties and responsibilities. Sometimes you may be faced with a situation where you believe you are making a sensible decision, for example settling a potential claim. However, unless this is done properly and within the prescribed rules, you could find yourself liable to a claim from the current beneficiaries. Often executors and trustees are advised to apply to court for directions as to how to proceed, or at least obtain the consent of all the beneficiaries.

With professional guidance you may well be able to resolve the potential claim quickly and without the need to make any applications to court.

It is important for you to know what you should do in case a challenge or claim is made and know the consequences of your actions before you make any decisions. Professional advice is often a necessary protection and the costs are usually paid out of the estate or trust.

Our team are always open and upfront with you when discussing the anticipated costs that you may be facing. We are always mindful that any costs are reasonable and proportionate to the matter in hand.

The team at Linder Myers have experience in dealing with all types of executor and trustee problems. We act for executors and trustees in relation to many different issues, which can include one-off advice or in relation to on-going assistance regarding your powers and duties. We work extremely closely with our Trusts and Estates department to ensure that you get the best advice and support.

We will always try to assist you in settling a matter as early as possible so that future costs can be avoided. We pride ourselves in achieving the desired results by maximising the use of alternative dispute resolution, for example through formal mediation. However, when this is not possible, our experienced litigators will be able to guide you smoothly through the process.