Executor Commission Inquiry
The client is addressing a query regarding the executor of a will in NSW. They have been requested to provide a summary of expenses prior to signing a deed to allocate a $8,000 commission to the executor. The legal representative for the executor claims no obligation exists to provide this detailed account. The client is prepared to pay the commission but seeks clarity regarding the estate's expenses. There does not appear to be a clear clause in the will or deed that supports the solicitor's stance on withholding the expense summary.
Questions about this case
These answers have been verified by a lawyer in the LEAP networkCan the executor legally claim a commission without providing an itemised account of the estate's expenses?
In New South Wales, an executor can claim a commission for their services, but there is no automatic requirement to provide an itemised account of expenses unless specified by the will or requested by the beneficiaries or the court. The commission is usually a percentage of the estate's value, meant to compensate the executor for their work. Nevertheless, transparency is advised, and beneficiaries can ask for an itemised account if they suspect mismanagement. If there are disputes over the commission or expenses, the issue can be taken to the Supreme Court of NSW for resolution.
What are the legal requirements for an executor in NSW to disclose an itemised list of expenses before claiming their commission?
In New South Wales, an executor is generally obligated to act in the beneficiaries' best interests while maintaining transparency in managing the estate. Although there isn't a specific statutory requirement for an executor to furnish an itemised list of expenses prior to claiming their commission, such transparency is advised. Beneficiaries may request detailed accounts to ensure the executor fulfills their duties prudently. Executors claiming commission must either apply to the Supreme Court or obtain the beneficiaries' consent regarding the commission.
If the will does not specify, how is an executor's commission determined, and what are the rights of beneficiaries to contest it?
In NSW, if a will does not detail an executor's commission, the commission is typically determined by the Supreme Court of NSW, accounting for factors such as the estate's complexity and the executor's effectiveness and time invested. Beneficiaries can contest the commission if they find it unreasonable or unrepresentative of the executor's work. They may apply to the court for review of the commission amount or request an itemised account for transparency.
Are there any legal avenues available if the executor refuses to provide a detailed account of the estate's spending?
Should the executor decline to provide a detailed account of the estate's expenditures, beneficiaries can pursue action through the Supreme Court of New South Wales. According to the NSW Trustee Act 1925, beneficiaries are entitled to request the court to mandate the executor to furnish a complete account of their estate administration, including a list of expenses. If the executor still refuses to comply, the court has the capacity to replace them or take necessary actions.
