The Telegraph has recently reported that High Court cases where people are suing Executors in 2023 rose by 20% from the year before. It suggests that the number of cases involving rogue Executors not following the Deceased’s wishes, or Personal Representatives not complying with the terms of the Rules of Intestacy are on the rise.
For Beneficiaries, it is important to know whether you are legally entitled to benefit from an Estate when someone dies, so that you know when to take action or to seek legal advice.
This article therefore addresses who should inherit the Estate after someone passes away when there is a valid Will, and when there isn’t.
When there is a valid Will, there will likely be at least one (1), if not more, people appointed to act as the Executors of the Estate. If there isn’t anyone named as Executors or willing to take up that role, then the Non-Contentious Probate Rules 1987 dictates an order of priority as to who may act.
After the individual passes away, the Executors become responsible for dealing with the Deceased’s Estate. This includes (i) ascertaining the assets and liabilities, together with their values, (ii) obtaining a Grant of Probate (if required), (iii) paying any tax liabilities due, (iv) collecting in the assets, and (v) settling any debts and liabilities.
The Executors also have a duty to distribute the Estate in accordance with the terms of the Will, and do not ordinarily have the discretion to decide who they wish to benefit or in what shares (the only exception is if the Will creates a Discretionary Trust).
Once a Grant of Probate has been issued, both it and the associated Will become public documents and anyone can obtain copies for a nominal fee. So, if you suspect you might be a Beneficiary of a person’s Estate, it is worth looking to see if you are named in the Will.
Quite often, people also die without a Will. This may be because they never created one, because their last Will was revoked by a new marriage, or because they created one, but it is invalid.
When someone dies without a valid Will, the Non-Contentious Probate Rules 1987 again dictates an order of priority as to who may apply for a Grant of Representation in order to administer the Estate.
Instead of being called Executors, whoever takes out a Grant are called Administrators and their power to act derives from the Grant once it is issued.
Once they have a Grant, the Administrators then have the same responsibilities and duties as Executors do in terms of (i) paying any tax liabilities due, (ii) collecting in the assets, and (iii) settling any debts and liabilities. However, when it comes to distribution, the Rules of Intestacy apply.
The Rules of Intestacy are contained within Section 46 of the Administration of Estates Act 1925. This sets out which surviving relatives are entitled to inherit the Deceased’s Estate.
Therefore, even when there is no valid Will, the Administrators still do not have the discretion to decide who they wish to benefit or distribute the Estate to. Instead, they are required to follow the Rules of Intestacy.
The two (2) cases mentioned in the Telegraph Article were a case where an Executor was sent to prison for three (3) weeks after refusing to follow his late Mother’s wishes in her Will to pay a portion of the £425,000 from the sale of her home to her Grandchildren, and a case where an Executor was removed after blocking an outstanding loan worth £45,000, taken out by his Ex-Wife from his late Mother, from being recouped from his share of his Mother’s Estate.
In a case that we are dealing with, one (1) of the two (2) Executors is residing in his late Mother’s property and is refusing to vacate the same and distribute half of the proceeds to his Sister (the other Executor).
Whilst the increase in property prices and more complex family structures has led, and continues to lead, to rises in inheritance disputes generally, we have certainly noticed increases in cases where it is less about who stands to inherit but rather about how the Estate is administered and whether it is being dealt with properly.
If you believe that a Personal Representative (an umbrella term for both Executors and Administrators) is not administering an Estate in accordance with either the terms of the Will, or the Rules of Intestacy, or is not acting in accordance with their legal duties, there are various steps that can be taken or Claims that can be advanced against them. These include Claims for maladministration, misuse of assets, negligence, breaches of duty, and causing loss to the Estate. Further, action can be taken to remove rogue Personal Representatives, so that the damage can be limited and someone else can step in and do the job properly.
If somebody you know has died, and you don’t believe that their Estate is being administered properly or has been distributed in the right way, please do get in touch with our Contentious Trusts & Probate team on 01823 625824, and one of the Team will be happy to help.