If you are stuck in such a situation, here is what to do.

Mr. Kapoor, a resident of Birmingford, recently passed away, leaving his estate to his three children, Rohan, Priya, and Sameer, who are also the joint executors of his will. The main asset in the estate is the family home. The executors have successfully obtained the Grant of Probate and had the property professionally valued for Inheritance Tax purposes.

The property is now on the market. However, a dispute has arisen. Rohan and Sameer insisted on listing the house at a price significantly higher than the official valuation, against the advice of the estate agent and their sister, Priya. As Priya feared, there has been very little interest from potential buyers at this inflated price. She is now concerned about how long this stalemate can continue, the ongoing costs to the estate, and the legal implications of her brothers’ refusal to be reasonable.

Advice in such cases

Executors have a legal duty to act in the best interests of the estate and its beneficiaries. This includes administering the estate in a timely manner and preserving the value of its assets. When joint executors cannot agree on a course of action, such as the sale price of a property, it can lead to costly delays.

• Executors should try to resolve disputes through discussion, remembering their collective duty to the estate.
• If informal discussion fails, formal mediation with a neutral third party can be an effective way to break the deadlock without resorting to court action.
• The ongoing costs of holding the property (e.g., insurance, utilities, council tax) reduce the total value of the estate for all beneficiaries, a point that should be emphasised to the dissenting executors.

Applicable Sections of Law

The administration of estates in England and Wales is governed by several key pieces of legislation:

• Trustee Act 1925 & Trustee Act 2000: These acts set out the powers and duties of trustees, which include executors. A key principle is the statutory duty of care, requiring executors to act as a prudent person of business would when managing their own affairs.
• Administration of Estates Act 1925: This act provides the legal framework for collecting the deceased’s assets and distributing them to the beneficiaries.
• Inheritance Tax Act 1984: This governs the assessment and payment of Inheritance Tax (IHT). It requires accurate valuation of assets and stipulates that any significant changes in value upon sale must be reported to HM Revenue & Customs (HMRC).
• Administration of Justice Act 1985 (Section 50): This gives the High Court the power to substitute or remove a personal representative (executor) if they are hindering the administration of the estate or are otherwise unfit to act.

If you are the complainant

If you are an executor facing a deadlock caused by your co-executors, you should take proactive steps:

• Keep a detailed written record of all communications, including your proposals and the reasons for your co-executors’ objections.
• Send a formal letter or email to your co-executors, outlining your concerns about the delay, the ongoing costs, and your duty to the beneficiaries. Propose a clear, reasonable solution, such as reducing the asking price to the valued level after a specific period (e.g., four weeks) with no interest.
• Suggest formal mediation as a way to resolve the dispute amicably.
• If all else fails, you may need to seek legal advice about applying to the court for directions on how to proceed, or in extreme cases, to have the obstructive executors removed.

If you are the victim

If you are an executor who is insisting on a course of action against professional advice, it is crucial to reconsider your position:

• Your primary duty is not to your own financial hopes but to the estate as a whole. You must act reasonably and prudently.
• Consider the financial drain on the estate. An unsold property continues to incur costs, which ultimately reduces the inheritance for everyone, including yourself.
• Ignoring professional valuations and estate agent advice can be seen as a failure in your duty of care, potentially making you personally liable for any resulting financial loss to the estate.

How the police behave in such cases

Disputes between executors over the administration of an estate are civil matters, not criminal ones. The police have no jurisdiction and will not intervene. Their involvement would only be warranted if there were allegations of criminal offences, such as theft of assets from the estate or fraud. This is a matter for the civil courts to resolve.

FAQs people normally have

• Is there a time limit for probate to last?
  There is no strict legal deadline for the administration of an estate to be completed. However, there is a long-standing convention known as the “executor’s year,” which suggests that administration should ideally be completed within one year of the death. While selling a property can extend this, unreasonable delays caused by an executor’s actions can be challenged in court by beneficiaries.
• What happens if the house sells for more than the probate valuation?
  If the property sells for a significantly different price than what was declared for Inheritance Tax, you must inform HMRC. You will need to submit a Corrective Account (Form C4) to report the actual sale price. If the higher price results in more IHT being due, this will need to be paid from the estate proceeds.
• Can one executor force a sale?
  Generally, joint executors must act together, particularly for major decisions like selling a property. One executor cannot typically force a sale against the wishes of the others. If a deadlock cannot be broken, the only recourse is an application to the court for an order, either compelling the sale or giving one executor the authority to proceed.

What evidence is required?

If the matter proceeds to a legal challenge, the following evidence will be crucial:

• The Grant of Probate, confirming your authority as an executor.
• The deceased’s will.
• The official property valuation report used for the IHT return.
• Written advice from estate agents regarding the recommended marketing price.
• All correspondence (emails, letters) between the executors that demonstrates the disagreement and your attempts to resolve it.
• Records of the ongoing expenses of the property (e.g., utility bills, council tax statements, insurance policies).

How long will the investigation take?

This is not a police “investigation” but a civil legal process. The duration depends entirely on the path taken. Resolving the issue through letters between solicitors might take a few weeks. Mediation could be concluded in a day, though arranging it might take longer. If an application to the court is necessary, the timeline can extend significantly, likely taking several months depending on the court’s schedule and the complexity of the dispute.

Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of 100 GBP to 400 GBP depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored.

Advocate Sudhir Rao, Supreme Court of India