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High Court records rise in number of executor disputes

08 August 2019
Categories: Legal News , Wills & Probate
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A sudden jump in the number of (usually rare) cases where heirs try to oust executors has been recorded by the High Court.

The High Court saw 138 new cases of this type last year, an increase from zero new cases in 2017, according to figures obtained by private client firm Boodle Hatfield.

Disputes typically arise where heirs feel executors aren’t distributing enough of the estate or moving quickly enough or where there has been a breakdown in trust and confidence. 

Mark Lindley, partner at Boodle Hatfield, said: ‘It appears that more heirs are now willing to try to seize control of estates and are using the courts to remove executors who they think are not acting in their interests. 

‘Claims such as this are usually rare as executors often choose to retire rather than face court proceedings and the risk of personal costs liability.’

Executors play a particularly important role where the deceased set up a discretionary trust, as this gives them control over who should benefit from the estate. This arrangement is often used to administer the estate of high net worth individuals. Regardless of wealth, however, the legal costs involved in taking an argument to court can substantially deplete the amount left.

Lindley said: ‘Disputes over high-value estates can very easily occur if high net worth individuals do not put enough thought into how their wealth will be distributed. The apparent increase in applications to remove executors demonstrates the importance of proper advice when making a will, but also for executors when administering estates on how to avoid claims by the beneficiaries.  The court places paramount importance, ultimately, on the beneficiaries’ interests.’

Categories: Legal News , Wills & Probate
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