When to appoint a professional independent administrator

The appointment of a professional independent administrator can arise in a number of different scenarios. The most common is where a dispute has arisen in connection with an estate but there are other situations where such an appointment may be equally appropriate.

So, when might it become necessary to appoint a professional independent administrator?

Mismanagement of the estate

Perhaps the most obvious scenario in which the appointment of a professional independent administrator may be needed is when an executor has failed to meet their duties to administer the estate correctly. For example, an executor may have misappropriated estate funds, missed deadlines for inheritance tax payments, or failed to administer the estate in a reasonable time. These are but a few examples of ways in which an executor could breach their duties, but the key question is whether the executor has acted in the best interests of the estate, and the beneficiaries, in carrying out their role. If the answer is no, the executor should be removed and a professional independent administrator appointed in their place.

Conflicts

If more than one executor is appointed under a will, a conflict may arise between the executors themselves. This will usually be where the executors are unable to agree how to fulfil the deceased’s wishes and carry the terms of the will into effect and can include decisions about the sale of property, how to distribute personal items among the beneficiaries or even whether to instruct solicitors to assist with administering the estate. Again, if these conflicts are preventing the estate from being administered in the best interests of the beneficiaries, the appointment of a professional independent administrator can help to break the deadlock.

Disputes in relation to the estate

One of the most fundamental roles of an executor is to act with neutrality; they must safeguard the estate’s interests above their own and ensure that they do not favour the interests of one beneficiary above another. The neutrality of an executor can often be compromised, or be open to question, when a claim is made against the deceased’s will or estate, especially if the executor is also a beneficiary. For example, if the deceased’s last will leaves everything to the executor, but a beneficiary from a previous will brings a claim to challenge that will, the executor has a clear conflict of interest. In these circumstances, it may be very difficult for the executor to remain neutral while also actively defending a will challenge in their capacity as beneficiary. The appointment of a neutral third-party professional independent administrator can eliminate this type of conflict, allowing for the estate to be safeguarded while the dispute is resolved.

Intestacy

When someone dies without a will or with a will that doesn’t appoint an executor, there are specific rules about who is entitled to take out a grant at the Probate Registry and to administer the estate. However, there may be multiple individuals equally entitled to act. If those entitled are unable to agree who should act, or cannot agree to act together, a professional independent administrator can take on the role.

Complexity

Acting as the executor of an estate is a time consuming, and often complicated, process and complex estates can be particularly challenging. If an executor feels unable to take on the role, it may be more appropriate for a professional independent administrator, who has the requisite knowledge and expertise, to handle the administration in their place.

Inability

There are many reasons why an executor might be unable, or inappropriate, to act. This could be due to physical or mental illness, bankruptcy, or a history of financial problems. In such cases, a professional independent administrator should be appointed.

Conclusion

There are many reasons why it might be appropriate to appoint a professional independent administrator, some of which are detailed above, although these are not an exhaustive list of the scenarios in which such an appointment could, or should, take place. If you would like advice on whether or not the appointment of a professional independent administrator may be appropriate in your case, please contact Birketts’ Private Wealth Disputes team.