I have 3 siblings as executors and probate has been granted.
The property has been sold and now one of the executors is refusing to agree to the distribution of the proceeds which would be to all 3 in equal shares. Can we distribute on a majority agreement or do we have to rely on all 3 to agree? If the latter how do we resolve the situation; do we have to go to Court and who pays?
thanks
Whilst any executor may give instructions, if you follow the instructions of the majority that will in probability draw you into their dispute. Your retainer is no doubt with all the executors together, so that if you try to broker some kind of agreement you might be alleged to be partisan and find that you are having to defend yourself at your own expense.
I suggest you tell them that you need their joint instructions, failing which you are unable to make a distribution.
I do not believe it is for you to try and resolve the situation, the background to which you may have no, or only little information about. The issue is between them and they need to sort it out.
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals
Dear Paul
I thought that was the case but I can but try to be helpful!
Thank you very much.
Take care.
Just to confirm……….I will not be trying to broker an agreement.
Hopefully common sense will prevail, rare occurrence.
Had the Estate administration ended by the time of the sale? If so, the sale would have been as bare trustees and each beneficiary entitled to the share he owned.
I second Paul’s advice and where I have found myself with squabbling Executors I have made it clear that I cannot advise them individually, and that they will need to resolve any disagreement between themselves, and if necessary seek independent legal advice.
I usually also flag the increase in costs in us being involved (even copied in on emails) of a dispute -this usually helps to focus their minds and seek to resolve privately. There is of course also always the requirement to advise that you may need to cease acting if instructions cannot be provided by clients and conflict of interest (though appreciate this latter point still leaves practical issue of what to do with funds!)