What does it mean to have joint executors of will in NSW?
When someone dies, their will outlines who will manage their estate. In New South Wales, a will can appoint two or more people as joint executors. This means they must act together on all matters relating to the estate.
Can There Be Two Executors of a Will?
Yes, there can be two or more executors of a will. This is called co-executorship. When there are two or more executors, they are all responsible for carrying out the terms of the will.
There are several reasons someone might choose to have two or more executors. One reason is to have someone help with the workload.
If the estate is large or complex, having two or more people working together can be helpful. Another reason is to have a backup in case one of the executors cannot act.
For example, if one of the executors becomes ill or dies, the other executors can still carry out the terms of the will.
If you are considering having two or more executors, keep a few things in mind. First, you must ensure that the people you choose are trustworthy and capable of handling the responsibility. Second, you must decide how you want the executors to work together. Do you want them to act unanimously on all decisions? Or do you want them to be able to perform by majority rule?
If you need help choosing or appointing executors, you should talk to a lawyer. They can help ensure your wishes are fulfilled and your estate is handled best.
Benefits
- It helps ensure that the estate is handled efficiently and promptly.
- It can provide a check and balance on the actions of the executors.
- It can help to avoid disputes between the beneficiaries of the estate.
Drawbacks
- It can take more work to reach a consensus on decisions.
- It can be more expensive, as the executors may need a lawyer to help them with the estate.
- It can lead to disputes between the executors.
Ultimately, whether or not to have two or more executors is a personal decision. There are benefits and drawbacks to consider, and the best decision for you depends on your circumstances.
Can One Executor Act Without the Other?
No. If there are joint executors of will in NSW, they must collaborate on all matters of importance.
This means they must agree before taking any action that affects the estate. However, they can divide the more minor tasks between themselves.
There are some exceptions to this rule. For example, if one executor cannot act for some reason, the others may be able to work alone. Additionally, if the will specifically states that one executor can operate independently, they can do so.
It is best to consult with a wills and estates lawyer if you are still determining whether or not one executor can act without the other.
Do Both Co-Executors Need to Sign?
Yes, both co-executors need to sign most estate-related documents.
This includes the probate application, property deeds, estate bank accounts, and tax returns.
The estate bank account should be set up to require the signature of all executors for cheques and withdrawals, too. If there are joint executors, they usually only let you set up the account with them.
There are some exceptions to this rule. For example, if one executor cannot act for some reason, the others may be able to act alone.
Additionally, if the will specifically states that one executor can act alone, they can do so.
However, checking with the probate court or a lawyer is always best.
Reasons Both Executors Need to Sign
- To ensure that both executors are aware of and agree with the decisions being made.
- To prevent one executor from acting unilaterally and making decisions that the other executors disagree with.
- To provide a check and balance on the actions of the executors.
- To protect the interests of the beneficiaries of the estate.
As a co-executor, you must know how to sign estate-related documents.
You should also be mindful of the exceptions to this rule and the steps you can take if you cannot act.
Can an Executor Appoint Another Executor?
No, an executor cannot appoint another executor. The power to appoint an executor is only given to the person who created the will, also known as the testator. The executor is a person named in the will to fulfil the testator’s wishes.
If an executor needs to appoint someone else to help them with the estate, they can do so by giving that person a power of attorney.
A power of attorney is a legal document that gives someone else the authority to act on your behalf. The person who is given a power of attorney is called an attorney-in-fact.
A power of attorney can be limited to specific tasks, such as selling a property or paying bills. It can also be general, giving the attorney-in-fact the authority to do anything the executor could.
Having a power of attorney is crucial if the executor cannot act. This could happen if the executor becomes ill or dies. A power of attorney will ensure someone is available to care for the estate.
What Does 3 Executor’s Majority Rule Mean?
If there are 3 executors named in a will, they must all agree before taking any action that affects the estate. However, they can divide the more minor tasks between themselves.
The majority rule means that if there is a disagreement between the executors, the majority’s decision will prevail. For example, if there are 3 executors and 2 of them agree to sell a property, the sale can go ahead even if the third executor disagrees.
This is the default rule in most jurisdictions, but the will can override it. The testator can specify in their will that the executors must act unanimously or that they can act by majority rule.
There are some advantages to the majority rule. It allows the executors to make decisions more quickly and efficiently. It also prevents one executor from being able to veto the decisions of the others.
However, there are also some disadvantages to the majority rule. It can lead to deadlock if the executors disagree on a decision. Getting everyone to agree on a decision can also be difficult, especially if the executors are not all on good terms.
If you appoint 3 executors, it is essential to consider the majority rule. If the executors cannot agree on decisions, specify in your will that they must act unanimously.
Here are some additional details about the majority rule:
- If the will does not specify whether or not the executors can act by majority rule, they will be presumed to have to act jointly.
- If one executor refuses to act, the other executors may be able to apply to the court to have them removed.
- If one executor dies, the remaining executors can continue administering the estate.
It is important to note that the majority rule is just one way of dealing with disagreements between executors. There are other options available, such as mediation or arbitration. If you are concerned about deadlock, you should discuss your options with a lawyer.
Our wills and estate lawyers provide expert legal guidance on wills, probate, and estate administration. Our team specializes in resolving disputes swiftly and amicably.
Don’t let legal complexities slow you down. Contact us today to schedule a consultation, and let’s chart a clear path forward together.
