Letters of administration - what are the potential complications?

Letters of Administration applies when there is no will (legally known as dying intestate) or when there is a will but the named executors are unable or unwilling to act.

Letters of administration is the legal terminology for the legal power issued by the Probate Registry giving an administrator the legal right to deal with a deceased person's estate. The document serves as proof of the administrator's authority when dealing with banks, investment companies, insurance providers, and other asset holders.

The application process for the grant from the Probate Registry (and the role of administering the estate in general terms) is not dissimilar to applying for a Grant where a will was left but the potential complications for estate administrators can be much more difficult.

Key differences from probate with a will

When comparing administration of an intestate estate with probate where there is a valid will, several important differences include :

• Who will administer the estate - where there is no will there is a strict order of priority which determines who can apply, typically starting with surviving spouse or civil partner, then children of the deceased (including legally adopted), then parents of the deceased and then brothers and sisters of the whole blood. The list continues until it gets to uncles and aunts.

• Who gets what - without a will (Letters of Administration) assets are distributed according to the statutory intestacy rules which follow a rigid hierarchy with specific percentages and thresholds and no provision for unmarried partners, step-children, friends, or charities.

• Security Requirements - where there is no will, in some cases, the Probate Registry may require the administrator to provide a security bond.

• Guardian appointments - where there is no will no and the deceased was the sole parent with young children guardian appointment exists. The court will need to determine guardianship based on children's best interests

Disputes over who should be Administrator

When multiple people have equal entitlement to apply (e.g., several children of the deceased), disagreements can arise about who should take on the role of administrator. These disputes can be resolved through several mechanisms :-

Voluntary agreement - family meetings to discuss who is best placed to act and/or negotiation of an agreement for one person to apply with others renouncing their right and/or creation of a written agreement documenting who will handle specific aspects of administration.

Joint administrators or power reserved - joint applications where up to four administrators can be appointed together or power reserved approach where one person takes the grant with others reserving the right to join later or appointment of an independent professional administrator (solicitor or accountant) acceptable to all parties or a court application for a specific issue order determining who should apply.

Formal court proceedings - which may involve :-

• Citation process compelling a person with prior entitlement to either take the grant or renounce their right

• Contentious probate proceedings where the court decides who should administer based on evidence

• Passing over application asking the court to skip someone with higher entitlement in favor of someone else

• Application for appointment of a neutral administrator (such as an official solicitor) when conflict is severe

When deciding these cases, courts typically consider wo represents the majority beneficiary interest, who has the necessary skills to administer effectively, whether there are conflicts of interest, who the deceased was closest to or relied upon and practical factors like proximity to assets and availability. Without resolution, these disputes can lead to:

• Delays in the administration process

• Increased costs if legal advice is required

• Family disputes that can damage relationships

• Assets deteriorating or losing value while undermanaged

• In extreme cases, no one being able to access accounts or sell property

Other disputes and complications with letters of administration

Beyond disagreements about who should administer the estate, intestacy frequently leads to various disputes that the administrator must navigate :-

• Interpretation of intestacy rules - the administrator must determine how the statutory rules apply to complex family situations, often under scrutiny from potential beneficiaries with different interpretations

• Valuation disputes - the administrator must secure asset valuations that will be challenged by beneficiaries who may believe properties or businesses are worth more or less than the official valuation

• Inheritance Act claims - the administrator must respond to court proceedings brought by family members or dependants challenging the statutory distribution, potentially freezing estate distribution during litigation

• Cohabitee claims - unmarried partners making claims for financial provision place the administrator in the difficult position of defending the estate while possibly acknowledging the moral claim

• Conflicting beneficiary interests - when some beneficiaries want assets sold while others want them retained, the administrator must make decisions that inevitably disappoint some parties

Unlike executors chosen by the deceased in a will, administrators did not volunteer for the role, often without preparation or clear guidance from the deceased on how to resolve conflicts. This can strain relationships permanently, particularly as an administrator must prioritise their legal duties over family expectations.

Difficulties locating beneficiaries

When distant relatives are entitled to inherit under the intestacy rules :-

• Extensive genealogical research may be required

• Professional heir hunters might need to be engaged

• The costs of locating beneficiaries can be substantial

• Distribution may be delayed while searches are conducted

• Insurance may be needed to protect administrators against claims from undiscovered beneficiaries

Practical tips for Estate Administrators

If you find yourself appointed as an administrator for an intestate estate, consider the following guidance:

1. Seek professional advice early - complex estates often benefit from solicitor involvement

2. Take detailed inventory - create a comprehensive list of all assets and liabilities

3. Secure property and valuable items - ensure empty properties are insured and valuables secured

4. Communicate with potential beneficiaries - keep family members informed while managing expectations

5. Maintain meticulous records - document all actions, decisions, and expenses

6. Consider a statutory advertisement - protect against unknown creditor claims by placing a notice under the Trustee Act 1925

7. Obtain appropriate valuations - ensure professional valuations for significant assets

8. Maintain a separate executor's account - don't mix estate funds with personal finances

9. Address Inheritance Tax requirements promptly - pay any tax due within six months of death to avoid penalties

10. Consider estate protection insurance - protect against late-emerging claims or liabilities