The term Independent Administrator is generally used to describe a legal individual or quite often a trust corporation appointed by the courts (or by mutual consent) to act as a professional personal representative. B P Collin’s private client team considers when an Independent Administrator may be appointed.
When preparing a will, a testator (the person whose will it is) will need to elect executors. These are the people responsible for collecting the estate assets, paying any tax or other liabilities, and distributing the estate. The choice of executors is a key consideration as disputes concerning estates are increasingly common. An Independent Administrator may need to be appointed when there is a dispute within an estate, which can lead to the named executors in a will or administrators in an intestacy being removed from office, such as.
- Breakdown in relationship between executor and beneficiary
- Conflict of interest if there is a dispute in relation to the Will or claims on the estate
- Complex estate that needs an experienced professional involvement
Disputed estates are unfortunately on the increase and the administration of these estates can often be hamstrung by ongoing disagreements as to how the estate is being dealt with and a breakdown in trust between personal representatives and beneficiaries. Alternatively, there may be concerns about the executors’ ability to carry out the administration either because of incompetence or negligence, excessive delay, or misuse of estate assets.
The appointment of an Independent Administrator can often be a sensible solution to break the deadlock and enable the administration of the estate to continue. This is where a professional (usually a solicitor or trust corporation) is appointed to step into the shoes of the executor. This usually requires an application either to the High Court or to the Probate Registry.
There are cost implications to having professionals acting in the administration of the estate and so it is important to establish what assets are in the estate to ensure there will be sufficient funds to cover any professional fees in addition to the usual testamentary expenses and inheritance tax liabilities. However, whilst the cost must be considered the peace of mind of having an estate properly, professionally, and independently administered (and in many cases, the appointment of an Independent Administrator being the only alternative to fully fought litigation) cannot be underestimated.
The private client team at B P Collins is very experienced in dealing with these types of estates and can assist in progressing matters efficiently and remove some of the emotion and minimise tension between beneficiaries.
The way we usually are instructed is through B P Collins Trust Corporation (BPCTC) – BPCTC is a corporate trustee wholly owned by the partners at B P Collins LLP. The Trust Corporation acts as a trustee, executor, attorney and deputy for many estates and trusts, in addition to disputed estates.
If you believe you may need an independent administrator, then you can speak with a member of our private client team or if you already have a solicitor, then they can advise you of the options and investigate whether agreement can be made to appoint an independent administrator, without the need to apply to the Court.
Once the B P Collins Trust Corporation are appointed, the private client team will then deal with everything from that point forward and hopefully provide some peace of mind and reassurance that matters will progress and be dealt with fairly.
For further advice and information, please contact B P Collins’ private client team on 01753 889995 or email enquiries@bpcollins.co.uk.
