Estate Administration Disputes

Between Beneficiaries and Executors/Administrators

1. Executor/Administrator conflict of interest

   such as where an Executor/Administrator has an “interest” in an actual or potential estate claim.

   An example would be an Executor/Administrator asserting a gift of monies from the deceased in circumstances where there is no direct evidence to support the assertion.

2. Executor/Administrator delay or mismanagement
   such as where an Executor/Administrator:
   1. substantially delays a Probate/Letters of Administration application;
   2. engages in serious delay in administering an estate:
   3. fails to provide beneficiaries information or estate accounts;
   4. treats estate property as their own in failing to account to beneficiaries; or
   5. refuses to sell an estate house required to be sold with the intention to hold it for use by the Executor/Administrator or someone associated with them.

3. Executor/Administrator commission or expense reimbursement

   an Executor/Administrator has no automatic right to a commission payment for their estate administration work.

   A beneficiary can dispute an Executor/Administrator commission claim and claims for reimbursement of out-of-pocket expenses which are unsubstantiated or insufficiently connected to the estate administration.

4. Between Administrator/Beneficiary on an Intestacy

   The Intestacy Rules set out a statutory hierarchy based on closeness of kinship to determine who inherits estate assets.

   Disputes are not uncommon where a person claims a beneficiary interest in asserting they were, for example, the deceased's domestic partner where they may not have been living with the deceased or shared a bank account.

5. Between co-executors

   Co-Executors must make decisions jointly.

   If there is disagreement on key administration matters such as which real estate agent be engaged to sell estate property, whether to engage a particular lawyer, accountant/valuer or one executor refusing to sign authorities to enable estate financial records to be obtained, a deadlock situation may arise where no further administration steps can be taken until it is resolved.