Can Beneficiaries Claim Against A Personal Representative?

Beneficiaries of a Will can feel vulnerable if the Personal Representative of an Estate is making decisions they believe are jeopardising what they are entitled to receive or are taking too long to administer the Will. It is crucial to know that the law can assist you with resolving a dispute with a Personal Representative, and in most cases, a resolution is achieved outside of Court.

Why do disputes between Beneficiaries and Personal Representatives develop?

The dramatic rise in house prices over the past 30 years has increased the value of estates. No longer are £1 million-plus estates the preserve of the fortunate few. Correspondently, today’s middle-income earners are struggling to get on the housing ladder and amass wealth, meaning children and grandchildren born after the 1980s (so-called Millennials and Generation Z) are increasingly relying on inheritances to buy their own property and/or fund their retirement.

This need for inheritance can result in tensions between Beneficiaries and Personal Representatives, with the most common disagreements stemming from:

• Delays in seeking a Grant of Probate and/or distributing the property and assets of the Estate.
• The Personal Representative does not appreciate that volatile assets such as shares and cryptocurrencies must sometimes be quickly sold to ensure their full value is realised.
• Disagreements over the sale of the family home. For example, the Personal Representative pricing it too low or engaging an inexperienced estate agent.
• The Personal Representative is also a Beneficiary (which is often the case), and their actions are giving rise to suspicions of a conflict of interest.
• A lack of communication from the Personal Representative.
• The Personal Representative fails to seek financial advice when appropriate.
• The Personal Representative does not follow the instructions set out in the Will or behaving inappropriately and/or exhibiting bias towards one Beneficiary over another.

Beneficiaries can also suspect the Personal Representative of acting dishonestly or fraudulently. This can develop into a serious situation and is outside the scope of this article. However, if you do suspect fraud, contact an experienced Private Client Solicitor immediately.

Can I bring a claim for breach of trust against a Personal Representative?

Although the offices of Trustee and Personal Representatives are similar, some differences mean a breach of trust claim is not appropriate. Unlike a Trustee, a Personal Representative does not simply hold the legal title of the assets in trust for the Beneficiaries; they are in charge of the entirety of the interest and take care of the Estate as a whole. A Beneficiary’s only right is to have the Estate correctly administered. Therefore, the proper cause of action when bringing a claim against a Personal Representative is a devastavit claim.

What is a devastavit claim?

A devastavit (Latin for ‘he has laid waste’) claim is brought against a Personal Representative in situations where Beneficiaries believe they have squandered assets and/or made an unauthorised profit for their own benefit. Misusing assets, breaching fiduciary duties, and negligence by a Personal Representative can all result in a devastavit claim. Maladministration of the Estate, for example paying out a legacy without ensuring there are sums available to pay the debts of the Estate or paying a debt that the Court has ruled is barred by limitation can also give rise to a devastavit claim.

Will I need to go to Court?

Most disputes between Beneficiaries and Personal Representatives are resolved through Alternative Dispute Resolution methods such as negotiation and/or mediation. Experienced Dispute Resolution and Private Client Solicitors know how emotionally fraught these types of disputes can be and will work tenaciously to avoid formal litigation which is not only expensive but is likely to lead to a permanent breakdown in relationships.

How can a Solicitor help in a dispute between Beneficiaries and a Personal Representative?

Disputes concerning a deceased’s Estate are always complex, often expensive, and seldom pretty when it comes to personal relationships. Emotions typically run high, and frustrations can result in hasty decisions being made that are frequently later regretted.

A Disputes Resolution and Private Client Solicitor (working as a team) can look at your dispute objectively and provide pragmatic advice on how to resolve issues. This can help mitigate the risk of personal relationships imploding and save you a great deal of time, money, and heartache.