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Cost neutral?

01 October 2009 / Frances Ratcliffe
Issue: 7387 / Categories: Features , Wills & Probate
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Frances Ratcliffe counts up executors’ costs after Raymond Saul v Holden

While it is trite law that usually executors are entitled to their costs out of the estate in administration proceedings, a recent High Court decision not only disapplied that general rule, but also ordered that the solicitors acting for the executor (and residuary beneficiary) should personally pay the costs of the beneficiary’s trustee in bankruptcy in the solicitor’s claim for a declaration as to the proper distribution of the estate.

In Raymond Saul v Holden [2008] EWHC 8565 (Ch), [2008] All ER (D) 168 (Dec), Raymond Saul were instructed by Mr Hemming in his capacity as executor of his mother’s estate. He was also the residuary beneficiary of her estate. After his bankruptcy a dispute arose between his trustee in bankruptcy and him as to the distribution of the estate: both the trustee in bankruptcy and Mr Hemming claimed that Raymond Saul should transfer the proceeds to them.

Given Mr Hemming’s financial circumstances he did not issue proceedings to resolve the dispute, nor

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