Executor disagreement - do i have to pay other executor personal legal fees?

DippySkippy

It just gets worse....
The 2 executors (X & Y) disagree over estate administration - X is happy to DIY as will save circa £20K+, the other wants to use their favoured solicitor. Solicitor has been informed by X that they should not do any billable work against the estate. It all kicked off

Solicitor has come back saying they are acting for Y and want to check all figures and IHT400 submission etc. Not sure X has to agree?

Bit tedious but dont mind solicitor - as long as paid for by Y. BUT - what if the solicitor advises Y to simply charge his costs as an estate expense? Can they do this? any way to stop this happening?

Note - the way the Will is written X ends up paying 80% of estate admin costs so is keen to avoid costly solicitor fees. The estate is actually pretty simple, all liquid assets (Cash accounts and some shares).

Savvy_Sue

I'm sure someone will give a knowledgeable answer before long: mine is not, BUT you could find and consult your own solicitor simply on this point, which should not lead to massive costs. 

tls123

It is likely that the solicitors will need paying out of the estate I did believe if there were two executors then they both had to instruct a solicitor to agree to the administration. Sounds like Y went ahead without checking with X. With respect does X have the necessary capability to DIY yes sounds great idea to save sols costs but oftern executors choose to use solictors are they are scared by tax, IHt etc implications if they get it wrong

tls123

Also I would check the will it’s usual for any estate expenses to be paid before the distribution to beneficiaries so although I’m not saying I don’t believe the will states X pays its unusual was the will written by a solicitor

mattojgb

Executors are entitled to their reasonable expenses from the estate, and if one of them feels the need for legal assistance that would seem to be a reasonable expense. It might be worth clarifying with the solicitor that their role is restricted to advising the other executor and they have no role in the administration of the estate.  You probably don't have to provide the information to the solicitors, but that may end up being counterproductive.

DippySkippy

tls123 said:

Also I would check the will it’s usual for any estate expenses to be paid before the distribution to beneficiaries so although I’m not saying I don’t believe the will states X pays its unusual was the will written by a solicitor

The Will says the residual estate is split 80% (X) 20% (Y) - this effectively means Y only pays 20% of estate expenses (and they have been given a large lump free of all tax)

DippySkippy

tls123 said:

It is likely that the solicitors will need paying out of the estate I did believe if there were two executors then they both had to instruct a solicitor to agree to the administration. Sounds like Y went ahead without checking with X. With respect does X have the necessary capability to DIY yes sounds great idea to save sols costs but oftern executors choose to use solictors are they are scared by tax, IHt etc implications if they get it wrong

The solicitor hasnt been instructed to administer estate but to provide advice to Y. My concern is that Y then claims their costs (solicitor fees) as an allowable estate expense.

DippySkippy

mattojgb said:

Executors are entitled to their reasonable expenses from the estate, and if one of them feels the need for legal assistance that would seem to be a reasonable expense. It might be worth clarifying with the solicitor that their role is restricted to advising the other executor and they have no role in the administration of the estate.  You probably don't have to provide the information to the solicitors, but that may end up being counterproductive.

Some good news - Y has subsequently agreed to pay their solicitor fee and not charge as an estate expense, Will try and minimise the solicitor involvement.

HobgoblinBT

Many solicitors offer a limited probate service including checking the IHT400. This limited service is likely to cost a few £000 rather than £20,000 plus.

 Many solicitors publish their fees on their web sites so you should be able to check.  In my view, a few hundred quid spent checking the accuracy of a set of IHT and probate forms is money well spent if if saves errors and delays in a probate application for what sounds like a hefty estate.