Rising executor disputes: what you can do to prevent family conflict

To help guide your decision, our Wealth Preservation team has outlined key factors to consider when appointing executors:

Number: any number can be appointed but a maximum of four can act at any one time.  We recommend choosing at least two executors or a substitute executor who will step in if your original executor can’t act.

Next generation: appointing an executor from a younger generation makes it more likely that they will survive you and/or have the requisite mental capacity to administer your estate.

Amicable relationships: when appointing more than one executor it is important that they have a good relationship and will be able to work together to administer your estate.

Location: an executor does not need to live locally to you but it is preferable that they are close enough to deal with aspects of your estate such as personal possessions and property. Appointing an executor who is not local or lives abroad, may cause practical complications in the handling of the estate. If you rely on international post to send documents to the executor for signature during the administration, you may experience delays. It is also important to remember that executors may incur travel expenses which are chargeable to your estate.

Time: it is not uncommon for testators to underestimate how much work could be involved in administering their estate and the complexities that could be encountered.  The role of an executor can be time-consuming and onerous, particularly if there is inheritance tax payable (with valuations of assets to be agreed by HMRC) or if there are properties or land to sell.

Informing your executors
We strongly recommend speaking with your chosen executors before appointing them to ensure they are not only willing to act but also fully understand their roles and responsibilities. Serving as an executor involves legal, administrative, and tax duties, including valuing the estate, applying for the Grant of Probate, managing income and inheritance tax matters, collecting assets, settling outstanding debts and administration expenses, and distributing the remaining estate to the beneficiaries named in the Will.

Reasons to Appoint a Professional Executor
Appointing a professional executor to administer your estate ensures the process is handled with expertise and care. The benefits of selecting a trusted professional, such as Greenwoods Legal Trust Corporation Limited, include:

Objectivity: the estate will be administered independently and impartially.  This may be helpful if there is potential for conflict e.g if the following circumstances apply:

• You are treating your children unequally.
• You are excluding someone who would expect to benefit.
• You would otherwise be appointing the same people as executors and beneficiaries.

Expertise: professional executors will be fully familiar with their duties and what is required of them.

Security: some of the claims reported relate to executors having mixed estate funds with their own money.  Professional executors keep estate monies on a separate client account, avoiding financial mismanagement of the estate.

Flexibility: several of our partners are directors of the trust corporation. This means decisions can be made and documents signed quickly, without reliance on the availability of a particular named individual.

Continuity: trust corporations do not face the same risks of incapacity, illness, or death as individual executors or trustees; a professional executor or trustee is always available to act on behalf of the estate or trust.

While appointing a professional executor comes with a cost, it is often significantly lower than the potential litigation expenses if disputes arise.

If you’re unsure who you’ve appointed as the executor of your Will, would like to review or update it, or need to make any changes, please reach out to your usual Wealth Preservation team contact. Similarly, if you or your executors have any questions or concerns about the role and its responsibilities, don’t hesitate to contact our Wealth Preservation team today for expert advice.