Many beneficiaries will have their own horror tales to tell there are many executors who find any number of ways to cause damage to the estate and its beneficiaries. Delays generally for example in selling assets within a reasonable timeframe or pursuing claims which due to the length of time taken become irrecoverable.Failing to invest estate funds when there is a duty to do so or investing in such a way that causes the estate to suffer a loss.Failing to collect rent on a property when at a later date the tenant becomes insolvent or disappears.Inheritance tax paid out of the residuary estate where it is chargeable instead to a person receiving a specific gift.Incorrect calculation of inheritance tax resulting in either an overpayment which is not recovered or an underpayment which results in penalties and interest deducted from the estate.Using estate assets in their own business.Spending estate funds on themselves or converting estate assets for their own use.Bias – for example failing to deal with all beneficiaries in an even-handed manner acting in the best interests of some to the detriment of others.Fraud and dishonesty – typically failing to report assets in the accounts and retaining those assets for themselves, or unauthorised use of estate cash or assets.Negligence – for example delaying administration, not encashing assets, selling land and buildings at incorrect market value any mistakes made which have cost the estate financially.Breach of financial duty – for example purchasing an asset from the estate at an undervalue without anyone’s approval.Maladministration – for example failing to pay the liabilities of the estate in the specified order.
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An uncomfortably high proportion of these estates, history suggests, will have been or are being dealt with unsatisfactorily. In 2019 alone, 236,000 grants of representation were issued with thousands more stuck in the queue. However, things don’t always happen that way. Ed Stanley, director and head of contentious probate at Harrison Drury, assesses situations where executors stray from the straight and narrow and the remedies available when things go wrong.Įxecutors (or administrators where there is no will) are supposed to collect in and administer the assets in the estate of a deceased person and to provide to the beneficiaries and to the court an inventory and an account of their dealings. Poorly performing, biased or dishonest executors can cost beneficiaries of wills dearly. Wayleaves, telecommunications and utility agreements.
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