Resolving Conflicts Among Co-Executors in NSW

An executor’s role in managing a deceased person’s estate is critical to ensuring that their assets are distributed according to their wishes. However, conflicts may arise when a will appoints multiple co-executors, complicating the administration process. In New South Wales, resolving disputes among co-executors is essential for settling an estate smoothly and avoiding legal delays that may negatively impact beneficiaries.

Our Sydney wills and probate disputes lawyers at Szabo & Associates Solicitors will explore common causes of disputes among co-executors, the legal responsibilities of executors, and steps to resolve conflicts to ensure the efficient administration of an estate in NSW. 

Understanding the Role of an Executor in NSW

Before diving into potential conflicts, you must understand the duties of an executor. Executors are responsible for carrying out the deceased’s wishes as outlined in their will. Their tasks may include:

• Collecting and valuing assets
• Paying debts and taxes
• Distributing assets to beneficiaries
• Managing estate finances until the estate is settled
• Keeping beneficiaries informed about the estate’s progress

When more than one executor is appointed, they are expected to work together to make decisions about the estate. However, when co-executors cannot agree, it can lead to delays and disputes.

Common Causes of Conflicts Among Co-Executors

Several factors can contribute to disagreements among co-executors in NSW. Common causes of disputes include:

• Differing opinions on estate management: Co-executors may have conflicting views on estate management. One executor may prefer a more conservative approach to managing assets, while another may advocate for selling assets quickly to distribute the estate more efficiently.

• Personal relationships: Co-executors are often the deceased’s family members or close friends, and pre-existing personal tensions or rivalries can resurface during the estate administration process. Family dynamics can contribute to conflicts when there is a lack of trust or ongoing interpersonal issues between executors.

• Conflict of interest: If one co-executor is also a beneficiary, they may make decisions that benefit themselves over other beneficiaries. For example, an executor may delay the sale of an estate property because they personally want to buy it at a lower price, causing tension with the other co-executors.

• Lack of communication: Co-executors need to communicate effectively to work together. Failing to inform each other about estate matters or making unilateral decisions without consulting the other executors can lead to mistrust and conflict.

Steps to Resolve Conflicts Among Co-Executors

Co-executors in NSW have a legal duty to work together to act in the estate’s and its beneficiaries’ best interests. If they fail to fulfill their legal obligations or allow conflicts to interfere with their duties, they can be held personally liable for any financial losses to the estate or beneficiaries. Resolving disputes between co-executors can be challenging, but there are several steps they can take to manage conflicts and move forward with the estate administration, including:

• Open communication: Co-executors should discuss decisions early on and ensure that all parties are involved in the process.

• Seek mediation: If co-executors cannot resolve conflicts through direct communication, they may seek the assistance of a neutral third party, such as a mediator.

• Apply for court intervention: In situations where mediation is unsuccessful or not possible, co-executors may apply to the Supreme Court of NSW for intervention.

• Resignation of one executor:In some cases, the best solution may be for one of the co-executors to step down.

Contact Szabo & Associates If You Have an Estate Conflict

If you are involved in a dispute with co-executors or need guidance on estate administration, seeking professional legal advice is crucial. At Szabo & Associates, our experienced wills and probate disputes lawyers can help you navigate the complexities of co-executor disputes and ensure that the estate is managed per NSW law. Contact us today to discuss your situation and find the best path forward.