Independent administrators explained: when and why are they appointed?
Administering an estate can become difficult where disagreements arise between executors, or between executors and beneficiaries. Disputes can lead to delays, increasing costs and making it more difficult for the estate to be administered effectively.
Where an estate administration has become unworkable, the appointment of an independent administrator can provide a practical way forward. An independent administrator is usually a professional appointed to take over the administration of an estate where it is no longer appropriate or practical for the existing personal representatives to continue.
But when will an independent administrator be appointed, who can apply, and what happens to the existing executors?
The role of independent administrator
An independent administrator is a person appointed to administer a deceased person’s estate independently of the existing family members or other personal representatives.
The person appointed will often be a solicitor or other professional with experience in estate administration. Their role is to take responsibility for administering the estate and making decisions in accordance with their legal duties, rather than being aligned with any particular beneficiary or family member.
The appointment can therefore be particularly useful where relationships have broken down or there is a lack of confidence in the existing arrangements.
When an independent administrator is appointed
There is no single set of circumstances in which an independent administrator must be appointed. The court will consider the particular circumstances of the estate and whether the proposed appointment is appropriate in the interests of the proper administration of the estate.
Examples of circumstances where independent administration may be appropriate include:
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when executors cannot agree
Where co-executors are unable to agree on important decisions, the administration can reach a standstill. This might involve disagreement about whether to sell an estate property, how an asset should be dealt with or whether legal proceedings should be brought or defended.
An independent administrator can provide a single professional decision-maker, allowing the administration to progress.
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when there has been a breakdown in relationships
An estate can become difficult to administer where relations between the executors and beneficiaries have deteriorated significantly. If beneficiaries no longer have confidence in the executors, or communications have become hostile, an independent administrator may help restore confidence in the administration.
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when there are allegations of misconduct
Concerns may arise about how an executor has dealt with estate assets, communicated with beneficiaries or otherwise carried out their duties.
An allegation of misconduct does not, by itself, mean that an executor should be removed. However, where concerns have resulted in a serious breakdown of trust or make it difficult for the existing executor to continue effectively, independent administration may be appropriate to consider.
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when there is a conflict of interest
An executor may have a personal or financial interest which conflicts, or appears to conflict, with the interests of the estate or its beneficiaries. In appropriate circumstances, an independent professional can provide an impartial alternative.
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when an executor is unable or unwilling to act
An executor may become unable to administer an estate because of illness, loss of capacity or other circumstances, or may simply be unwilling to continue. Where there is no suitable replacement available, the appointment of an independent administrator may provide a solution.
How to appoint an independent administrator
An application to the court will generally be required. Depending on the circumstances, the application may be made by a beneficiary, an existing personal representative or another person with a sufficient interest in the estate.
The proposed independent administrator will usually need to be identified and their willingness to accept the appointment established. The application should also explain why it is appropriate to replace the existing arrangements and why the proposed appointment would assist with the proper administration of the estate.
Where the relevant parties agree, the application may be capable of being dealt with without a contested hearing. If the appointment is opposed, however, the court may need to determine whether the circumstances justify replacing the existing personal representatives.
Once an order has been made, practical steps will be required to transfer responsibility for the administration, including dealing with the Grant of Representation, estate assets and relevant documents.
Related questions
Are there alternatives to appointing an independent administrator?
Independent administration is not always the appropriate solution.
Depending on the circumstances, it may be possible to resolve the underlying problem through negotiation or mediation. An executor may also be able to retire or otherwise cease acting, or an application seeking guidance from the court may resolve a particular issue without requiring the existing personal representatives to be replaced.
The appropriate solution will depend on the nature of the dispute and the extent to which the administration has broken down.
When might an independent administrator be the right solution?
An independent administrator can be particularly valuable where an estate has reached a point at which the existing personal representatives are unable to administer it effectively, whether because of deadlock, conflict, concerns about the conduct of the administration or other circumstances.
It can provide a way of separating the administration of the estate from the underlying family dispute and allowing the estate to move forward.
RWK Goodman’s trust company, Withy King Trustees Limited (WKTL), is often appointed to act as an independent administrator, supported by the firm’s Private Client and Contentious Trusts & Estates teams where appropriate.
Whether you need an independent administrator, or are just looking for support with administering an estate, our specialist probate solicitors are here to help guide you through the process.
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