Claims by personal representatives, executors, or trustees

In general, the obligation of a personal representative, executor, or trustee is to remain neutral, administer the trust or estate with reasonable care and skill, and in accordance with the trust deed or will. Usually, this involves avoiding litigation as much as possible or remaining neutral in litigation between the beneficiaries of an estate or a trust. However, sometimes, as B P Collins’ contentious probate team advises, claims may need to be brought by the executors or trustees of a will or trust in order to allow them to do their job. For example:

1. Where a will or trust document is unclear, the trustees may apply to the court to interpret the document and provide them with directions as to how to carry out their roles;
2. Executors or trustees may require the court’s permission to distribute or administer the trust or estate on the assumption that a certain factual event has occurred. Usually this is that all possible beneficiaries have been located or where a particular beneficiary cannot be located, that they have died. This is known as a Re Benjamin order;
3. Executors or trustees may need to issue proceedings to recover estate or trust property (for example, possession proceedings to remove someone from a house which needs to be sold) or to recover debts owed to an estate or trust;
4. Where claims have been alleged against a trust or estate, which means it cannot be distributed but are not being pursued, the executors or trustees may apply for what is known as a “put up or shut up” order which requires the complainant to issue their claim within a certain period of time, or allows the trustees/executors to administer the trust or estate without personal liability should the claim later be issued.

Claims by trusts or estates are complex because trustees and executors need to carefully balance their obligations to all the beneficiaries and to the estate or trust itself. Where proceedings appear to be reasonably necessary, trustees or executors will often be advised to seek the court’s permission to pursue the litigation in a blessing application.

Further or alternatively, they may want to make a Beddoe (sometimes known as a Re Beddoe or Beddoes) application. This is an application to ensure that personal representatives, trustees, or executors engaging in litigation on behalf of a trust or estate will have the costs of the legal fees met from the estate or trust fund rather than risking an order to meet these costs personally.

If you are an executor who is experiencing issues in the administration of an estate or trust, our expert contentious trusts and probate team can advise you in relation to your prospective obligations and any applications which might be made to resolve your concerns.

If you require advice in relation to an administration dispute, please contact the contentious probate lawyers at enquiries@bpcollins.co.uk or on 01753 889995.