Time can be a funny thing depending on your perspective. When you’re experiencing an event, or a saga, time may seem to slow down. Nothing can expedite the issue to its conclusion, the clock just has to continue ticking. When you’re merely an observer to said saga, you might marvel how quickly time passes. Learning of updates can only prompt a “Wow! Is that still going on?”
We say this because a few years back, we posted a story about a client who was tied up in a seemingly never-ending estate battle with their sibling. We received an update recently. Thinking back, we assumed it was only a couple of years since we posted the story. In reality, going back to check, we find out nearly five years have passed since we talked about this saga.
To bring you up to speed, we’ve reposted the article and provided a summary below:
https://www.spencerprivatewealth.com.au/blog/2024/3/6/where-theres-a-will-but-not-a-way-part-1
Cynthia and James (not their real names) were made executors of their Aunt’s estate. Both everything you’d want as executors. Reliable and trustworthy, both in professional jobs and without any personal differences, you’d expect them to finalise everything in short order.
Their Aunt passed away nearly a decade ago and they’re still battling it out over her estate. And ‘battling’ gives the impression this is two parties at war. Nothing could be further from the truth. Cynthia would like to move on; no one really knows what James wants. Since their Aunt passed, James developed an intense hatred for Cynthia.
The estate comprised a modest house and a small amount of money. Combined, it wasn’t a large sum, and it’s been getting smaller by the year (it’s not in a location where real estate prices have readily appreciated). Every action by Cynthia has prompted an opposite reaction from James. This has drawn the lawyers into the fray.
Initially, Cynthia wanted to buy the property herself. That wasn’t going to work because James decided he wanted to buy the property. Stalemate. Eventually, Cynthia decided she wanted to sell the property and be done with the issue. James then decided while he was happy to keep his share, he no longer wanted to buy the property. Further frustrating Cynthia.
This has kept the estate from being settled, and there doesn’t seem any prospect of it being settled soon. The pair communicate through lawyers and while Cynthia could take the matter to court and likely win an outcome, she’d rather be fair and equitable, so both parties walk away with an even share.
Almost five years later and we’re advised this battle has almost concluded. Almost. In hindsight, Cynthia’s fair and equitable nature has unfortunately been used against her. It has also likely prolonged the saga, but in fairness to her, she couldn’t anticipate what she was going to encounter. No one could imagine dividing a small estate would become a decade plus exercise in unpredictability and spite. Every time the end appeared near; another issue would arise.
What’s occurred since the last update?
As noted, James had engaged his own lawyers to progress, but then he wanted complete control. It seems he was ignoring his own lawyer’s advice to progress the matter. He then changed lawyers. Given the time that’s elapsed, James’ lawyer may have retired, passed away, or most likely, just became frustrated with his behaviour, and told James he no longer wanted him as a client.
After getting a new lawyer, James then wanted another valuation on the property, but then went quiet for another long stretch of time. James then reappeared, making an offer. He would now buy Cynthia’s share of the property and keep it himself, but it came with conditions. James started asking for small items that weren’t included in the estate. It seemed he wanted to start arguments over paintings and photos and recipes.
It then devolved into horse-trading for a period of time. James started trying to give back things that were allocated to him in the will. He’d then ask Cynthia for things she’d been given in the will. This was then wrapped up in an offer to take the property and pay Cynthia out, if some items were traded.
It’s important to highlight here that the cost is now much more than financial. While the estate has been completely eviscerated by fees, both Cynthia and her partner have spent untold hours going through documents and wondering what to do next, given the endless frustrations of dealing with James. The mental and emotional drain is incalculable, worse, Cynthia has encountered her own health challenges over the past five years while this has gone on.
Even that didn’t go unnoticed by James. He started suggesting that a combination of the estate battle, and Cynthia’s ill health, was now a contributor to their mother’s health issues. Without a hint of irony, he was concerned at what this estate battle was doing to their mother. However, their mother had been in ill health for almost 20 years, and there had been no recent change for the worse in her condition.
This was the final straw for Cynthia. Cynthia had her lawyer go through the documents, with the intention of going to court. James was notified if he did not respond in an appropriate timeframe, the issue would be taken to court, with the intent to have the property sold and the estate finally wound up. Alternatively, James could buy Cynthia out at a now upwardly revised figure, higher than two previous figures he’d accepted, then delayed. However, this new valuation would still not be enough to cover the money wasted over the years.
This has prompted James into accepting the offer and things are now progressing toward a conclusion, but Cynthia and her partner are under no illusions. They have learned James has done repairs around the property, which he wasn’t meant to do. They won’t be shocked if there’s a surprise repair bill coming.
While this is one of the more extreme estate battles we’ve personally witnessed, it highlights how important choosing an executor can be. Usually, the battle is financial, but there was so little at stake in this instance, a small house in a not particularly desirable rural location and a small amount of money, that it seems money had little to do with this. Cynthia has no insights into her brother’s behaviour.
Someone can only ever speculate on another’s motivations, but keep in mind we only ever know a person up to the current moment in time. And we never really know their internal workings : petty grievances they’ve been holding onto, societal influences, mental health issues, medication changes. Anything can spring up. Doubtless, Cynthia and James’s aunt would not have expected this when she appointed them co-executors.
Doubts or no doubts, if the executor has any stake in the estate, the potential for problems exists. Sometimes it’s better to front the money to have an independent executor and stipulate the assets be liquidated and the proceeds be divided up from there. While it may look more expensive and clinical, it could be comparatively cheap and harmonious when the alternatives are considered.
This represents general information only. Before making any financial or investment decisions, we recommend you consult a financial planner to take into account your personal investment objectives, financial situation and individual needs.
With thanks to FYG Planners for this article