JACK passed away in November 2023.
He appointed his two sons as executors of his estate.
Jack was also survived by a daughter and his estate is to be equally divided between his three children.
Despite the expiry of 18 months after Jack’s death, his daughter is concerned that no steps have been taken to sell Jack’s home, nor realise the other assets of his estate, which include shares and a bank account.
Jack’s daughter retains a solicitor, who writes to the executors, explaining that capital gains tax may become payable if the house is not sold within two years of the date of death and in any event, asking them to fulfil their executorial duties in a timely fashion.
The executors do not respond.
Proceedings are commenced in the Supreme Court of New South Wales, seeking a range of relief to progress the administration of the estate.
The Court notes that the executors obtained a grant of probate three months prior to proceedings being commenced and that no substantial steps had been taken to administer the estate.
The Court observes that there is no clear consensus between the executors and the Court expresses concern regarding further delays and the risk of unnecessary legal costs and expenses.
The Court is also worried about the lack of documentation relating to the administration of the estate, which is described as “somewhat chaotic”.
The Court states that it is considering the possibility of appointing an independent administrator and asks the parties to appoint an agreed accredited probate specialist.
This case demonstrates the importance of appointing appropriate executors to administer one’s estate. It is important that the executors are aware of their responsibilities to act in the best interests of all beneficiaries and to avoid conflicts of interest.
Executors need to administer estates without delay and to be aware of the additional costs to the estate by not doing so.
When multiple executors are appointed, it is crucial that they are able to work well together.
Email Manny Wood, Principal Solicitor and Accredited Specialist in Wills and Estates at TB Law at manny@tblaw.net.au or call him on (02) 66 487 487.
This fictional column is not legal advice.
By Manny WOOD, Solicitor
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