A claim against an estate will always involve the executor of the estate. If the deceased left a Will, then the Will should state who has been appointed as the executor(s). If the deceased died without a Will (also known as dying intestate) then there will be no appointed executor. The person who applies for letters of administration on the deceased’s estate, often a family member or close friend, will become the personal representative of the estate and will therefore hold a similar role as an executor appointed under a Will.

 

It is the role of the executor/personal representative to uphold the wishes of the deceased and aid estate administration. They owe a fiduciary duty to all beneficiaries to act in their best interest.

 

When a claim is issued against the estate

If a claim is issued against an estate, then the executor/personal representative will be involved in the claim as they are the person appointed to manage the estate. The beneficiaries will require the authorisation of the executor when taking any action, such as issuing settlement offers to any potential claimants. This is because the executor/personal representative is the person managing the monies within the estate.

 

The executor/personal representative will be involved in defending an Inheritance Act claim. Their role, however, requires them to take an impartial approach, and they should not favour either party. It is the duty of the executor/personal representative to cooperate with the court proceedings and assist where necessary.

 

An example of where the executor/personal representative may be required to assist would include providing details of the estate accounts. This information is something that only the executor/personal representative will hold and is fundamental information when looking at a claim.

 

Sometimes, an executor can be a professional, such as a solicitor. It is common for people to appoint the directors/partners of a law firm to be their executors. This does not change their role, but it will incur costs for the estate as the fees incurred by the solicitor in acting as a professional executor will often be payable from the estate funds.

 

Can an executor/personal representative recover their costs in defending an Inheritance Act claim?

Although professional executors can sometimes recover their fees from the estate, it is not as simple for other executors. Someone acting as an executor appointed under the terms of a Will may inevitably incur costs in doing so. The ordinary expenses in administering an estate are recoverable, but when it comes to defending a claim being issued against the estate things become more complex. If an executor incurs expense in defending a claim, it is not guaranteed that 100% of the costs incurred will be recovered from the estate. It is for this reason that it is important to discuss the matter with the beneficiaries and duly consider the cost risks in defending a claim. However, if an executor maintains an impartial stance, as they are required to do, they will be more likely to recover their costs in the matter.

 

Can an executor/ personal representative bring a claim against the estate?

There may be a rare occasion where an executor is the claimant in a claim. In this instance it would be necessary for the claimant to step down as executor and to renounce their appointment. This would be vita as the individual would then find themselves in a serious position of conflict.

 

What if a claim is brought against an estate for which you are a beneficiary or executor?

You should seek legal advice as soon as possible In the event of a claim being raised against an estate. There are strict time limitations in place in relation to Inheritance Act claims and so it is necessary for claiming parties to act quickly to ensure that they do not miss their limitation to bring the claim.

 

Inheritance Act claims are complex matters and should be handled with due care and attention, so ensure you seek advice from a solicitor who specialises in Wills, Trusts and Contentious Probate. You can search for a specialist solicitor for free and without providing any of your person details on our website at search4legal.co.uk. Alternatively, you can read other guidance around Wills, Trusts and Tax Planning at search4legal.co.uk/Home/Guidance.