A testator (someone who drafts a will) can name co-executors to administer their estate. They can do this to divide labor, access professional skills, have someone they trust in an administrative position or avoid feelings of favoritism.
While an estate can significantly benefit from having co-executors, conflicts between them can arise. Below are four common matters that can lead to such disputes:
1. Decision making
Co-executors can disagree on how they make decisions regarding their duties. For instance, one executor may not agree with how the other wants to approach the selling of an asset, managing assets, preparing the formal accounting, communicating with beneficiaries and so forth.
2. Valuation of the estate
It’s not uncommon for co-executors to have differing viewpoints on estate valuation, especially when it comes to unique assets, like artwork, digital assets and mineral interests. Co-executors may disagree on a value given by a valuator. One may believe the proposed value is fair while the other disagrees.
3. Performance of duties
Co-executors should work together to perform their duties effectively. A party feeling like the other is not working as expected may lead to misunderstandings. Perhaps the latter does not perform their given tasks or they delay signing documents – either of which can slow down the probate process.
4. Dealing with creditors
How an executor deals with creditors matters. One mistake can negatively impact the estate. And the likelihood of a mistake happening can be high when more than one person is dealing with creditors.
Co-executors should be on the same page when notifying creditors, negotiating with them, paying debts, keeping a record of payments and selling assets to pay debts. If they disagree when performing any of these duties, conflict may arise.
If you and your co-executor have a dispute, you need to identify how you can resolve it quickly before it affects the estate.