The number of Executors of Wills being sued in the High Court has jumped 21% in the past year, with 87 cases in 2023, up from 72 cases in 2022.
These claims over ‘breaches of fiduciary duty’ centre around an Executor, who is responsible for dealing with the entire estate administration of a Will, failing to act in the best interests of the beneficiaries. Beneficiaries are individuals or organisations included in a Will.
The rising number of claims against Executors in the High Court highlights that it is vital that people appoint someone they trust to execute their Will.
Common breaches of fiduciary duty include when an Executor distributes assets against the terms of the Will or acts in the interest of some beneficiaries to the detriment of others. Executors can also cause problems by failing to properly manage the assets that make up the estate.
While the number of High Court cases of fiduciary duty breaches is growing, cases are usually settled before they reach the courts. This means that the actual number of these types of disputes is likely to be much higher than the reported figure.
When making a Will, writing down your wishes correctly is not the only consideration. If you choose the wrong Executor, costly disputes can very easily happen. Appointing an Executor is a hugely important decision and one that should be made after taking professional legal advice. This is a hugely responsible role, and it is well worth giving careful thought and consideration as to who you think will have the ability, time, and is willing to accept the responsibility of this role.
Acting as an Executor brings a great deal of responsibility. To take this burden away from your loved ones, you may wish to consider appointing a professional Executor to handle the administration, and to be the point of contact for your family and beneficiaries. They will have on-hand expertise to handle all aspects of the administration, including acting as Trustees if required. They will also make certain that time limits are adhered to for maximising tax savings for claims of relief, in relation to the sale of property and shares. They will also be able to advise on potential Deeds of Variation to mitigate Inheritance Tax.
How TWM can help you
At TWM, our expert Private Client team is here to help you and we offer an initial consultation with no-obligation to proceed, so that we can discuss with you the things you should consider and help you think about your choices and options.