How to protect an executor or administrator from claims by beneficiaries of a deceased estate

Are you the Executor or Administrator of a deceased estate? It sounds simple, call in the deceased’s assets and distribute them to the beneficiaries, right? Yes, until a beneficiary makes a claim for mismanagement of the estate or disputes the amount of their entitlement. Then you have a fully distributed estate and a legal dispute on your hands, and you are left to bear the legal costs. If you don’t want to be in the position, read on. 

How do you protect yourself from this as an Executor or Administrator? 

If you are an Executor or Administrator, obtaining legal advice on your legal obligations greatly assists in minimising the risk of potential claims against you. Executors and Administrators can be held personally liable for any loss the estate or beneficiaries incurred. 

Providing transparent documentation to beneficiaries about the estates assets and how they will be distributed can assist in protecting you in your role as executor or administrator. However, it is not a complete safeguard. There are many things that assist in protecting you against claims from beneficiaries, with a major one being Beneficiary Releases. 

A Beneficiary Release is a document which states the amount of the distribution the beneficiary is to receive and confirms their acceptance of the amount as their full entitlement from the estate. Drafted and executed carefully, this release can protect executors and administrators from beneficiary claims being made against them later on. 

What is the best way to obtain Beneficiary Releases? 

For your full protection, it is best to have the Beneficiary Releases drafted by a Deceased Estate lawyer who understands what information and legal advice should be included in the Release to protect you. 

At Wollerman Shacklock Lawyers, we prepare carefully drafted Beneficiary Releases as part of our estate administration processes. These releases cover different legal aspects that are often not known or thought of which ensure a complete safeguard to you against claims from beneficiaries down the track. 

We can assist in sending these to the beneficiaries for signing, and retention of these releases to protect the estate and you as executor or administrator. 

What could happen if you do not get signed beneficiary releases or poorly drafted releases signed?

 In short, you can distribute the estate in full and a beneficiary can make a claim or raise a dispute about their entitlement to the estate. Whilst this may not seem like a major concern, this can happen and very quickly turn into costly legal disputes. If you have already completely distributed the estate, the estate has no money to pay for the legal fees for the dispute, which means you as executor or administrator will be liable. It is not worth the risk.                                                                            

If you are an executor or administrator of a deceased estate, obtaining legal advice on the estate administration process is a safer way of ensuring that you fulfil your legal obligations and do not leave yourself open to risk of claims against you. Saving a little bit now could cost you a lot more later on. For all your deceases estate needs, contact our experienced deceased estates team today.