Inheritance Disputes update: Administrators must be careful not to issue proceedings prematurely

The recent case of Millburn-Snell -v- Evans has highlighted the need for administrators to obtain a "grant of administration" - a document authorising an appointed person to distribute the assets of the deceased where there is no will - before issuing proceedings on behalf of the estate.

The deceased ("M") had completed preliminary steps towards making a claim against the Defendant ("E"), when he died intestate - i.e. without having made a will -  and without having issued proceedings against E. Under the rules of intestacy, the Claimants were to be appointed the administrators of his estate.  The Claimants issued proceedings against E on behalf of M's estate. However, they had not received official confirmation of their appointment as administrators in the form of a grant of administration at this time.

Five days before the hearing, the Defendant applied to have the claim struck out.

The Claimants argued that, under the Civil Procedure Rules, the Court retained the power to allow the claim to continue despite the defect; however, the Court disagreed and decided that the claim was a nullity.

The Court of Appeal confirmed that the claim must fail as the Claimants did not have sufficient standing to bring the claim until the grant of representation was issued. The claim was struck out.
This differs from the position where a person has died having made a Will that appoints executors of the estate. Under those circumstances, the executors can rely on the intention expressed in the Will to take legal action on behalf of the estate, even before the grant of probate confirms this.

The outcome was also a personal fiasco for the Claimants as the Court of Appeal ordered them to pay all of E's costs in defending the proceedings - because, with no grant of administration issued, they simply did not have sufficient standing to bring the claim.

Comment

Administrators should always consider whether they have sufficient standing to bring a claim on behalf of an estate. A failure to wait for administrative powers to vest could have expensive personal  consequences.

Ashfords' Trusts and Estates Team can assist on any matters regarding a will or trust. For taxation and estate planning advice please contact Rachael Crocker on 01884 203088. In the event of a dispute in relation to a deceased person's estate or a trust please contact Robert Horsey on 01884 203086.

Ashfords LLP is regulated by the Solicitors Regulation Authority.  The information in this note is intended to be general information about English law only and not comprehensive.  It is not to be relied on as legal advice nor as an alternative to taking professional advice relating to specific circumstances.