Act in haste, repent in leisure: intermeddling in an estate

In a day and age where everything is so readily accessible to us, we’re always in a rush to get things done as fast as possible. And when a loved one dies, it is natural to want to get their affairs in order quickly.

However, the simple act of ‘helping out’ can have consequences down the line and could leave you liable for the deceased’s estate.

What is intermeddling?

Intermeddling means you have held yourself (intentionally or unintentionally) out as executor by handling the deceased’s assets.

This could be something as simple as collecting an asset, paying a debt or running the deceased’s business after their death.

These are all things you may not even consider as taking an active role in the administration of the estate, highlighting the importance of taking a step back and not rushing into anything.

It is worth noting that making funeral arrangements, making enquiries about the extent of assets and liabilities and collecting assets for safekeeping are some of the scarce examples of activities that do not constitute intermeddling.  

Being appointed as an executor

Being appointed as an executor leaves you with three choices: take up the appointment, renounce the appointment or have power reserved for you so you can act at a later date.

If you, as executor, intermeddle in the estate, you can lose your right to renounce your appointment and will need to act.

This can be difficult if you are simply looking to remove the burden from other family members who you believe could not administer the estate.

The courts can order that the person acting as executor who has intermeddled is personally liable to the estate for any loss they may have caused, including in relation to any inheritance tax on assets they have dealt with.

An example where this can become particularly problematic would be when an executor decides to deal with creditors and financial bodies.

At this point, they will be responsible for fulfilling all the executor’s duties and may be personally liable for the debts.

In addition to this, an executor may wish to take care not to intermeddle if there’s a possibility that the estate is insolvent from early on.

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For most people, the administration of a deceased’s estate is totally unfamiliar and can feel overwhelming. The biggest lesson from this is to always seek advice if you are in this position and feel like you are unsure of the best course of action.

For more information and advice, please contact Muckle LLP’s Anna Douglas at [email protected]