What are my liabilities as an Executor or Administrator?
As the executor of a will or administrator you have personal and unlimited liability, which means that if you make a mistake you could end up footing the bill for any financial or legal claims that occur as result of your actions. This takes effect as soon as you undertake the role.
Claims may be brought against the executor in relation to the estate for up to 12 years after the death of the estate owner has been registered.
What actions as an Executor or an Administrator make me financially or legally liable?
- Neglecting to properly insure the assets of the estate if it suffers a claim
- Diminishing the estate through imprudent investment and inadequate book keeping
- Failure to pay the correct taxes on the estate
- Selling an asset without the agreement of all the executors involved with the estate
- Engaging in an action which constitutes a conflict of interest without declaring or disclosing your interest to all relevant parties
- Improperly delegating a decision to someone who has no legal authority over the estate
- Paying or distributing goods, chattels or assets to the wrong beneficiary and then failing to recover those assets or monies to the detriment of other beneficiaries
- Failing to identify a creditor who subsequently makes a claim after the estate has been distributed
- Missing an overseas bank account relating to the estate which subsequently comes to light and results in a tax fine after the estate has been distributed
We offer a simple effective insurance policy which protects executors and administrators against financial and legal liabilities and claims relating to probate.