In many cases, those concerns amount to little more than understandable impatience. Probate can take many months to complete, especially where the estate includes property, business interests or complex tax issues. However, there are occasions when the usual grumbles about delay develop into more serious concerns about the actions – or in some cases the inaction – of the personal representative responsible for administering the estate.
‘Questions may begin to arise about whether estate assets are being properly managed, whether information is being withheld from beneficiaries, whether unnecessary delays are occurring or whether decisions are being made that are not in the best interests of the estate,’ says Claire Simon, Partner in the Dispute Resolution team with QualitySolicitors Parkinson Wright. ‘Where those concerns become more than mere suspicion, it is important to understand your legal rights.’
Disputes involving executors or administrators can be legally and emotionally complex. While beneficiaries understandably want answers, allegations of wrongdoing should not be made lightly. Equally, personal representatives owe important legal duties to the estate and its beneficiaries. If those duties are not being fulfilled, early advice from a solicitor can help establish the facts, protect your interests and identify the most appropriate way of resolving the dispute.
A personal representative occupies a position of trust and must administer the estate diligently, honestly and in accordance with the law.
Possible grounds for dispute
Delay
One of the most common causes of dispute is delay. While probate is rarely a quick process, beneficiaries may become concerned where little or no progress appears to have been made over an extended period without adequate explanation. Delays in obtaining valuations, selling property or resolving tax issues are sometimes unavoidable, but where a personal representative simply fails to progress the administration or communicate with beneficiaries, legitimate questions may arise about whether they are properly fulfilling their duties.
Lack of transparency
Disputes also frequently arise where beneficiaries believe they are being kept in the dark. Personal representatives are not expected to provide constant updates, but they should administer the estate transparently and be able to account for their decisions. Concerns may develop if requests for information are repeatedly ignored, estate accounts are not produced or beneficiaries are unable to establish what assets the estate contains or how they have been managed.
Financial mismanagement
Financial concerns are another common source of conflict. Beneficiaries may suspect that estate funds have been mismanaged, excessive expenses have been incurred or assets have been sold for less than their true market value. In more serious cases, allegations may arise that estate assets have been misappropriated, personal funds have been mixed with estate monies or the personal representative has obtained an improper personal benefit from their position.
Lack of impartiality
Disputes can also arise where a personal representative is perceived to be favouring one beneficiary over another, failing to collect assets belonging to the estate or neglecting to pursue debts owed to the deceased. Although not every disagreement amounts to misconduct, beneficiaries are entitled to expect that the estate will be administered impartially and in accordance with the deceased's wishes and the law.
Your rights as a beneficiary
Although the personal representative is responsible for administering the estate, beneficiaries are not without legal protection. If you are entitled to benefit under a will or under the rules of intestacy, you have the right to expect that the estate will be administered properly and within a reasonable period. Personal representatives owe fiduciary duties, meaning they must always act in the best interests of the estate rather than for their own benefit.
Beneficiaries are entitled to expect that estate assets will be safeguarded, properly valued and administered with reasonable care and skill. Personal representatives should avoid conflicts of interest and must not profit personally from their role unless expressly authorised by the will or the court.
In appropriate circumstances, beneficiaries may request information about the administration of the estate. If concerns arise regarding financial management, estate accounts may need to be produced so that the handling of estate assets can be examined.
However, beneficiaries should also recognise that personal representatives often have difficult decisions to make. Selling property, settling tax liabilities and resolving claims against the estate can all take time. A delay does not necessarily indicate wrongdoing. Obtaining legal advice before making allegations can help distinguish between legitimate concerns and the ordinary complexities of probate administration.
Relevant law
The duties of personal representatives arise from a combination of legislation, case law and the general principles of equity governing fiduciaries.
Executors and administrators must administer the estate in accordance with the deceased's will, where one exists, or in accordance with the rules governing intestacy where there is no valid will. They must identify and collect the deceased's assets, pay outstanding debts and taxes, keep accurate financial records and distribute the estate to those legally entitled to inherit.
As fiduciaries, personal representatives owe duties of honesty, loyalty and good faith. They must exercise reasonable care when managing estate assets and avoid placing themselves in situations where their personal interests conflict with those of the estate.
Where those duties are breached, the court has extensive powers to intervene. Depending on the circumstances, a personal representative may be required to account for their actions, compensate the estate for financial losses or, in more serious cases, be removed and replaced altogether.
Because probate disputes frequently involve both legal and financial issues, specialist legal advice is often essential to establish whether a breach of duty has occurred and what remedies may be available.
Legal remedies
The appropriate remedy will depend on the nature of the concerns and the stage the probate administration has reached. Not every dispute requires court proceedings, and many issues can be resolved through early legal intervention.
Where communication has broken down, your solicitor may first write to the personal representative requesting information, clarification or disclosure of estate accounts. In many cases, concerns arise because beneficiaries simply do not understand the progress being made. A carefully drafted letter from a solicitor can often resolve misunderstandings and encourage greater transparency without the need for formal litigation.
If concerns relate to financial management, it may be appropriate to require the personal representative to produce a full account of their administration of the estate. This allows beneficiaries to understand what assets have been collected, what payments have been made and whether estate funds have been administered appropriately.
Where a personal representative has caused financial loss through negligence or breach of duty, they may be personally liable to compensate the estate. This could arise if assets have been sold at an undervalue without proper justification, investments have been managed irresponsibly, estate funds have been misapplied or valuable assets have not been protected.
In some situations, beneficiaries may ask the court to remove and replace the personal representative. This is not a step the court takes lightly, particularly where the executor was chosen personally by the deceased. However, where there has been serious misconduct, an irretrievable breakdown in the administration of the estate or a conflict of interest that prevents the estate being administered fairly, the court has the power to appoint an alternative personal representative.
Many probate disputes are resolved through negotiation or mediation, allowing families to avoid lengthy and expensive litigation. Mediation can provide an opportunity to resolve disagreements while preserving family relationships, particularly where disputes arise between siblings or other close relatives.
Where settlement is not possible, court proceedings may become necessary. Probate litigation can involve detailed legal and financial issues, making careful preparation and expert legal representation essential.
How we can help
Our experienced solicitors can provide independent advice, helping you understand whether your concerns have legal merit and explaining the options available before the dispute escalates further.
For further information, please contact Claire Simon or a member of dispute resolution team on 01905 721600 or via email worcester@parkinsonwright.co.uk
This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.