Executors Liability for Estate Losses

It has already been established that where executors/Trustees have made investments they need to show due diligence to avoid liability for losses (Groom Estate v Groom ).

However, were they to sell equities when acting as Executors/Trustees at a time when the Stock Market has dropped but expected to rise in the not too distant future, would they then be liable for losses on the basis that they were not showing due diligence?

My thoughts being that present markets being affected from the Invasion by Russia and other issues, hopefully returning in the next few months, such action may cause concern of beneficiaries unless their prior approval to dispose of assets for distribution to beneficiaries was given.

I have always taken the view, as indeed Iā€™m sure have many others, that executors should not gamble on market movements and if the portfolio of shares needs to be liquidated in any case, they should act promptly once probate has been granted.
As regards the effect of the Ukrainian-Russian war, none of us know what could happen and if it were to escalate even further, stock markets would undoubtedly suffer.

Patrick Moroney

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