New Authority? Khan v Crossland
Issues surrounding the removal (voluntary or otherwise) of executors are always a hotly contested issue. The as yet unreported decision of the High Court in the case of Khan v Crossland threatens to add a further complication to this area.
In this case, the claimant and his sister were the beneficiaries of their step-father's estate under a will that had been drafted by the defendant's firm some time previously. The defendant was appointed executor under the terms of the will. The claimant and his sister had agreed how they wanted the estate to be distributed between them. They requested that the executor step down, as he was not needed as a result of the agreement between the beneficiaries to administer the estate. The claimant wished to administer the estate himself.
The executor refused to step down, arguing that he had been specifically appointed under the deceased's will, and had not done anything to warrant his removal. As a result, the relationship between the beneficiaries and the executor broke down, and the claimant applied under section 116 of the Senior Courts Act 1981 for the executor to be removed.
The court found that there were "special circumstances" in this case that should allow the claimant to be appointed as administrator and for the executor to be removed. These included that the relationship between executor and beneficiaries had broken down and that the beneficiaries were united in their wish to remove the executor (and how the estate was to be administered).
Future decisions may seek to distinguish this case on its particular facts, but the principle is a potentially significant development in cases of this kind. The implication is that beneficiaries can now agree to depose executors and that that will constitute a "special circumstance" under s.116 of the Senior Courts Act 1981.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
