BR Law Corporation
br@brlawcorp.com +65 6899 9888
  • Our Team
  • Practice Areas
  • News and Insights
  • Join Us
  • Contact Us
br@brlawcorp.com +65 6899 9888

Disputes Amongst Beneficiaries On Death Of A Family Member

 
14 December 2018
Foo Soon Yien
Picture
Picture
Picture
​In the administration of an estate, disputes may arise between the executor and the beneficiaries. While some disputes may be resolved by agreements between the parties, others may result in the delay of the administration of the estate. If an agreement cannot be reached and the dispute persists, the question is if it is appropriate for an executor of an estate to commence an action seeking orders or directions from the court to finalise the administration of the estate.
A and B named their children, C and D, as executors and trustees of their respective wills. After A’s death, his assets were given to his wife B in accordance with his will. B passed away a few years after A’s death. Under B’s will, her estate was to be distributed in equal shares among her 9 children, including C and D.
 
However, the distribution of B’s estate did not proceed smoothly due to a dispute amongst the siblings regarding two sums of money. The first was a sum of monies paid by C for the renovation of one of A and B’s properties before their deaths. The second sum was the summation of A and B’s medical expenses, which were paid for A and B.
 
After much discussion, C and D came to an agreement with the majority of their siblings for the distribution of the estate, including the disputed sums of money but 2 of the beneficiaries objected. Hence a deed of interim distribution was entered into to pay out the estate monies to the beneficiaries less the disputed sums and sums set aside for legal costs for the dispute.
 
To resolve the contention regarding the disputed sums and to finalise the administration of the remaining assets of the estate, C and D commenced an action seeking the following:
 
  1. A determination from the court regarding the disputed sums;
  2. An order approving the deed of interim distribution;
  3. An order approving the interim distribution made pursuant to the deed; and
  4. An order approving the intended final distribution to the beneficiaries.
 
The Applicable Rules
 
The application for orders was made pursuant to Rules 785, 786 and 789 of the Family Justice Rules 2014. Rule 785 clarifies that “administration action” in this division of the Rules refers to “an action for the administration under the direction of the Court of the estate of a deceased person”. Therefore, the Rules under the Division were applicable to C and D’s situation.
 
Rule 786(1) provides the basis for C and D’s application as it states that an action may be brought for the court to determine any questions or reliefs, or to grant any reliefs in relation to an administration action. Rules 786(2) and 786(3) elaborate on specific situations in which the court can determine questions or reliefs. The questions determinable by the court in relation to this case were (i) the administration of B’s estate per Rule 786(2)(a), and (ii) the rights or interests of the beneficiaries claiming to be entitled under the will, per Rule 786(2)(c).
 
The reliefs in C and D’s situation involved the compromise C and D reached with the other beneficiaries through the agreement, per Rule 786(3)(d). The court would be able to make an order approving the agreement reached according to this rule.
 
Rule 789 also states that an order by the court “need not be given or made unless in the opinion of the Court the questions at issue between the parties cannot properly be determined otherwise than under such a judgment or an order.” This was clearly the case as C and D had expended much time and effort in discussing the distribution of the assets of the estate with the beneficiaries who objected, but were still unable to reach an agreement with them.
 
The court eventually made an order approving of the distributions and the draft consent order, thus ruling in C and D’s favour.
 
Comments
 
The court has to attain a balance between giving the executors of an estate the freedom to handle administrative matters and intervening to facilitate the administration of the estate when executors require assistance. Considering how some executors may not be well-acquainted with the law and how it may be difficult for executors to reach a consensus with numerous beneficiaries to the will, applying to courts to assist executors through the making of orders is useful. Also, executors should seek directions or orders from the court if necessary to facilitate the timely administration of the estate.


Foo Soon Yien
Director, BR Law Corporation
foosoonyien@brlawcorp.com

Post date. Edit this to change the date post was posted. Does not show up on published site. 14/12/2018


Your comment will be posted after it is approved.


Leave a Reply.

    We're Here To Help

    Our team welcome any comments or questions and will gladly assist you with your enquiry. You can call us on +65 6899 9888 or fill out our simple contact form. 

    Disclaimer

    The materials in these articles have been prepared for general informational purposes only and are not legal advice or a substitute for legal counsel. If you require legal advice for your particular circumstances, please consult a suitably qualified legal counsel. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. You should not rely or act upon this information without seeking professional counsel. Whilst we endeavour to ensure that the information in these articles is correct, no warranty, express or implied, is given as to its accuracy and we do not accept any liability for error or omission. The authors of the articles are or were employees of BR Law Corporation at the time of  publication, but may no longer be, now or in the future, in the employ of the firm.

    Subscribe to our Newsletter

    Subscribe to our quarterly newsetter to keep up to date with a wealth of insights from the BR Law, BR Family Assets and BR Corporate services team.
    Subscribe to Newsletter

    RSS Feed

    Categories

    All
    Awards And Accolades
    Commercial Transactions
    Conveyancing
    Corporate Law
    COVID19
    Criminal Law
    Dispute Resolution
    Family And Matrimonial Law
    Intellectual Property
    International Law
    Personal Data Protection
    Probate And Administration
    Technology
    Wills And Trusts

    Archives

    November 2022
    June 2022
    May 2022
    April 2022
    March 2022
    November 2021
    October 2021
    September 2021
    July 2021
    May 2021
    April 2021
    October 2020
    September 2020
    July 2020
    May 2020
    April 2020
    January 2020
    October 2019
    June 2019
    March 2019
    February 2019
    January 2019
    December 2018
    August 2018
    July 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    September 2017
    August 2017
    January 2017
    September 2016
    March 2015
    January 2015
    July 2014
    June 2014
    May 2014
    April 2014

Firm Brochure

Download

Practice Areas

Subscribe to our quarterly newsetter to keep up to date with a wealth of insights from the BR Law.
Subscribe to Newsletter

Contact Us

br@brlawcorp.com
 
Main Branch - Republic Plaza
9 Raffles Place
#08-03 Republic Plaza
Singapore 048619
+65 6388 1717 Telephone
+65 6394 7398 Fax

Branch Office - Bank of China
4 Battery Road #29-00
Bank of China
Singapore 049908
+65 6899 9888 Telephone
+65 6338 5377 Fax

Branch Office - United Square
101 Thomson Road
#26-02/04 United Square
Singapore 307591
+65 6336 1717 Telephone
+65 6394 7318 Fax

Awards and Accolades

Picture
Terms of Use​  •  Privacy Statement
​© Copyright 2018 BR Law Corporation. Registered in Singapore (UEN: 200312051N).