When you appoint trusted individuals to act as your executors under your will or trustees of a trust, you hope and believe that they will administer your estate or trust with due care and attention and in accordance with their duties. However, as B P Collins’ contentious probate team highlights, sometimes this is not the case, and issues may arise relating to unnecessary delays, mistakes and negligence or, in extreme cases, outright fraud.
What are the duties of an executor or trustee?
Executorships and trusteeships are fiduciary positions, meaning that they hold a position of trust. The obligations of an executor or trustee is to act with honesty, integrity, and good faith. This usually means:
- Observing and abiding by the terms of the will or trust;
- Acting neutrally between beneficiaries of the trust or estate, including acting impartially in relation to any disputes which arise between the beneficiaries;
- Keeping accounts and providing information to the beneficiaries as required by law;
- Acting unanimously where there is more than one executor or trustee;
- To administer the trust or estate properly and fairly.
What issues can arise with executors or trustees?
Issues can arise where executors or trustees have:
- Refused or failed to provide the beneficiaries with information to which they are entitled;
- Failed to keep accounts;
- Administered the estate or trust ignoring the terms of the will or trust deed;
- Used the estate or trust assets for their own benefit, for example, by living in trust property without paying rent, making loans to themselves or friends or family members, using estate or trust money for their own benefit;
- Failed to administer the trust or estate within a reasonable period of time, or at all;
- Made decisions on their own without consulting their co-executor(s) or co-trustee(s).
What can be done about issues with executors or trustees?
There are a number of options available to either a co-executor, co-trustee, or a beneficiary who has concerns about the conduct of an executor or trustee. These include:
- Receiving advice about the terms of the will or trust deed and obligations of the executor/trustee;
- Applying to the court to remove an executor or trustee;
- Bringing claims against the trustee or executor for breach of trust, including applying for damages to recover any loss to the trust or estate.
If you have concerns over the administration of an estate or trust, our expert contentious trusts and probate team can advise you in relation to your prospective claims.
If you require advice in relation to an administration dispute, please contact the trust and estate dispute lawyers on enquiries@bpcollins.co.uk or 01753 889995.
