I’ve received a Notice of Intended Claim: What are my obligations?
As an executor, you may find yourself having to fight family provision claims brought against the estate by a relative or another person with whom the deceased had a close personal relationship. This can not only be an intimidating and unexpected event for most executors, but a source of significant personal conflict.
However, as an executor you have a duty to defend the estate against family provision claims.
You have a duty to assist the Court
The Court aims to achieve as efficient and fair an outcome as possible. As an Executor, you have a duty to provide the Court with as much information as you possess regarding:
You may not disclose confidential information.
You have a duty to maintain the estate until the Court has resolved the claim
As an executor, once you have received a notice of intended claim, you should not distribute the deceased’s estate until the Court orders it. If distributions are made from the estate and the Court later finds that the value of the remaining estate is insufficient to satisfy the family provision claim, then the executor may find themselves liable for the satisfaction of the claim.
You have a duty to inform other potential claimants:
While this may not seem intuitive, the Court seeks to ensure that all possible claimants are given a fair opportunity to have their claims determined by the Court. As such, as an executor, you are bound to send notices to other eligible people. These “eligible persons” include:
You have a duty to disclose any ‘conflict of interest’:
A ‘conflict of interest’ may arise when:
If there is a conflict of interest, the court may decide to appoint new representatives for the estate.
If you are an executor and have received notice of a family provision claim, we recommend that you seek legal advice. Contact Robert Webb at rwebb@franklegal.com.au or call 02 9688 6023.
Written by Alec Tonkin, Law Clerk
This article is provided to the reader for general information. It is not legal advice.