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

Need for executors to make an interim distribution of a deceased’s estate to beneficiaries while the collation of all the estate’s assets is ongoing

 
16 March 2022
Foo Soon Yien
Picture
Where a deceased person had executed a will, upon his death, the executor will have to apply to Court for a Grant of Probate to administer the deceased’s estate in accordance with the deceased’s wishes in the will. 
All assets of monetary value form the deceased’s estate and may include properties, bank accounts, investments and other physical possessions.

​
The executor might take some time in collating all the assets of the estate before distribution commences. This is likely where the deceased has many assets, particularly overseas assets. While collating the assets, there might be beneficiaries who are reliant on the deceased’s assets to pay expenses and liabilities and are thus looking to receive their share of the assets as soon as possible. This article discusses whether the executor has to make an interim distribution of the estate’s assets to beneficiaries while the collation of all the assets is still in progress.


In Reznik v. Matty [2013] BCSC 1346 (“Reznik”), the Canadian Supreme Court highlighted several important principles that govern an executor’s duties:
(a) An executor has a duty to settle the affairs of the estate and to distribute in accordance with the terms of the will (at [29]);
(b) An executor must not unreasonably delay doing (a) (at [30]); and
(c) The power to retain the estate assets does not override this duty to settle the estate’s affairs and to distribute (at [31]).


When it becomes clear that the assets exceed the liabilities of the estate even before administration is complete, there is no need for the executor to wait for every asset to be collected in or every debt paid to be before distributing assets that are already clearly not needed to meet any of the estate’s debts or liabilities. Beneficiaries should receive their share of the assets as soon as practicable (GDR and another v GDL and others [2022] SGHC 30 at [37]). To unnecessarily delay distribution would contravene the Reznik principles.


Even if the executors have yet to convey an asset to the beneficiary while in the midst of administration, they may acknowledge that a specific asset is not needed for payment of debts or funeral expenses of the estate. Such an acknowledgment is described as an assent (Seah Teong Kang v Seah Yong Chwan [2015] SGCA 48 (“Seah Teong Kang”) at [25]). An assent has the effect of making the disposition of that asset under the will operative, and perfects the beneficiary’s beneficial ownership of that asset (Seah Teong Kang at [26]).


Where there is no realistic prospect that the distribution of assets can be affected by those aspects of estate administration which remain unperformed , and the remaining tasks of administration are not likely to be completed soon, then it may be the executor’s duty to make an interim distribution to that extent (Gonzales v Claridades [2003] NSWSC 508 at [47]).


To sum up the discussions above, as an executor it is important to administer the estate in a timely manner. On the other hand, a beneficiary has the ability to compel an executor to make the relevant distribution of assets if an unreasonably long time is being taken to administer the estate without good reason.
Foo Soon Yien
Senior Director, Founder, BR Law Corporation
foosoonyien@brlawcorp.com

Post date. Edit this to change the date post was posted. Does not show up on published site. 16/3/2022


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

    February 2023
    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 newsletter 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).