Estate probate and administration can be a complex and contentious process, often giving rise to a variety of disputes.
These disputes can occur both before and during the administration of an estate and may involve challenges to the Will, claims against the estate, and new or existing claims against the deceased person for matters arising before their death, such as family law claims or civil claims. Additionally, disputes may arise between co-Legal Personal Representatives (co-LPRs) or between the LPRs and the beneficiaries. This article delves into the common types of disputes that can arise and the legal mechanisms available to address them.
Challenges to the estate
A common dispute involves challenges to the validity of the Will. A Will is only valid if the Testator (the person making the Will) had sufficient mental capacity to understand what they were signing and did so without undue influence from another person. If the Testator was too unwell to comprehend their Will or was coerced into making it, an interested party can apply to the Supreme Court to have the Will declared invalid.
- Mental capacity issues: for a Will to be valid, the Testator must have the mental capacity to understand the nature and effect of the Will, the extent of their assets, and the claims of those who might expect to benefit from the estate, while also being free of any capacity issues that would prevent them from fairly assessing those claims. If there is evidence that the Testator lacked this capacity due to illness, dementia, or other cognitive impairments, the Will can be challenged. If you would like to learn more about testamentary capacity, you can read our article ‘Incapacity: the importance of planning ahead’.
- Undue influence: undue influence occurs when the Testator is coerced or manipulated into making a Will that does not reflect their true wishes. This can happen through pressure, threats, or manipulation by someone close to the Testator.
Testator Family Maintenance (Part IV) Claims
Part IV of the Administration and Probate Act allows eligible individuals to apply to the Supreme Court within six months of the Grant of Probate or Letters of Administration for further provision from a deceased estate if they believe they haven’t been adequately provided for. These claims, often referred to as family provision claims, can be made by close family members, such as spouses or partners, children, and sometimes other dependents, who can demonstrate that they have been left without adequate support.
Eligibility: to make a Part IV claim, the applicant must fall within a specific category of eligible persons, which typically includes the deceased’s spouse or partner, children (including adult children), and sometimes other dependents who were financially supported by the deceased.
Assessment criteria: when assessing a Part IV claim, the Supreme Court considers various factors, including the applicant’s financial needs, the size of the estate, the nature of their relationship with the deceased, and any competing claims from other beneficiaries. The Court aims to balance the needs of the applicant with the intentions of the Testator as expressed in the Will.
If you would like to know more about Part IV claims, you can read our article “Understanding Part IV Claims”.
Disputes with the Executor/Administrator
The Executors or Administrators are the Legal Personal Representatives (LPRs) of the estate and are responsible for managing, preserving, and protecting it for the beneficiaries. Disputes involving LPRs often arise due to disagreements with other LPRs or with beneficiaries over how they are fulfilling their duties in administering an estate. These disputes can be particularly contentious and may require intervention by the Supreme Court.
Where there are significant issues with an LPR, the Supreme Court may remove them under specific conditions. These conditions include situations where the LPR:
- Is absent from Victoria for more than two years, making it difficult for them to perform their duties effectively.
- Requests to be removed due to personal reasons or conflicts of interest.
- Is deemed unfit or refuses to perform their role. An LPR may be considered unfit if there are undue delays in administering the estate, misappropriation of estate funds, or if they have a conflict of interest that prevents them from acting properly.
- Has significant conflict with another co-LPR that is delaying the administration of the estate.
The Supreme Court does not make this order lightly and must be satisfied that there would be harm to the beneficiaries’ interests if the LPR isn’t removed. The Court’s primary concern is to ensure that the estate is administered efficiently and in accordance with the law.
Other disputes
In addition to the disputes mentioned above, there are other potential disputes that can arise during estate administration. These may include:
- Claims by creditors: creditors of the deceased may make claims against the estate for debts owed. It is the responsibility of the LPR to ensure that all valid debts are paid before distributing the remaining assets to the beneficiaries.
- Disputes over asset valuation or distribution: disagreements may arise over the valuation or distribution of estate assets, particularly if the assets are unique or difficult to appraise. This can affect the distribution of the estate and may require professional valuation services or mediation to resolve.
- Family law claims: in some cases, family law claims may continue if the deceased was involved in family law proceedings at the time of their death. These claims can complicate the administration of the estate and may require legal intervention to resolve.
- Civil claims: civil claims against the deceased for matters arising before their death, such as personal injury claims or contractual disputes, can also impact the estate. These claims must be addressed by the LPR and can delay the distribution of the estate.
How can Novum Law Group assist you?
Estate administration is a multifaceted process that can give rise to a variety of disputes. Challenges to the Will, Part IV claims, disputes with LPRs, and other potential conflicts can complicate the administration of an estate and require legal intervention to resolve.
Our Wills and Estates team has extensive experience with a wide range of estate disputes and can assist you with navigating these disputes effectively. If you have a query or would like advice regarding an estate dispute, our Wills & Estates Team would be glad to assist you. Please call us on 9063 0300 or send us an email to discuss with one of our lawyers, or click here to make an appointment.
Authors
Sheredyn Legg
Stephen Fries
The information provided in this article is for general informational purposes only and is not intended to serve as legal advice. For specific legal concerns, please speak directly with one of our qualified lawyers.
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