Acting as an executor carries responsibility not only for collecting and distributing an estate, but also for keeping an accurate record of how the estate has been administered.

Difficulties can arise where a beneficiary asks an executor to provide an inventory, estate accounts or the documents supporting particular transactions. Executors may be unsure how much information they are required to provide, particularly where relations between family members have become strained or the request appears unusually wide.

While beneficiaries are entitled to sufficient information to understand how an estate has been administered, this does not necessarily mean that every document relating to the estate must automatically be disclosed.

What are an executor's responsibilities?

Under section 25 of the Administration of Estates Act 1925, a personal representative must collect and administer the deceased's estate according to law. The Court can also require a personal representative to produce a full inventory of the estate and an account of its administration.

In practical terms, an executor should therefore maintain proper records throughout the administration rather than attempting to reconstruct the estate accounts at the end.

The importance of this duty was emphasised in Ali v Taj [2020] EWHC 213 (Fam). The High Court described the obligation to provide an inventory and account as a "cardinal duty" of an executor and confirmed that executors should keep accounts and records relating to the administration of the estate.

Good record keeping can also protect an executor if questions are later raised about the way in which the estate has been handled.

What should estate accounts contain?

Estate accounts should provide a clear picture of what came into the estate, what was paid out and what ultimately remained for distribution.

Depending upon the estate, this will ordinarily include the assets and their values, liabilities at the date of death, money received during the administration, property sale proceeds, estate income, debts and expenses paid, tax liabilities, legacies or interim distributions and the calculation and distribution of the remaining estate.

HMRC describes estate accounts as showing what has come into the estate and all payments made out, including debts, expenses, taxes and specific bequests, before the remaining residue is calculated.

At the conclusion of an administration, final estate accounts should therefore allow the beneficiaries to understand how the executor has moved from the assets existing at the date of death to the amount ultimately available for distribution.

Can a beneficiary ask for an inventory and accounts?

Yes.

A beneficiary or other person with an appropriate interest in the estate can seek information about its administration. In Ali v Taj , the Court confirmed that a person interested in an estate may call upon an executor to provide an inventory and account.

A request for accounts should therefore not simply be ignored because an executor considers that the administration has been carried out properly.

If adequate information is not provided voluntarily, an interested person may ultimately seek an order requiring the executor to provide an inventory or accounts. The Court also has wider powers in estate and trust proceedings to order accounts to be produced and, where necessary, verified.

This means that refusing a reasonable request without proper justification may ultimately create more cost and difficulty for the estate.

Does an executor have to disclose every document?

Not necessarily.

There is a distinction between accounting for the administration of an estate and providing unrestricted access to every document held by the executor or their solicitor.

Beneficiaries should generally be provided with enough information to understand and, where appropriate, verify the administration of the estate. That may mean producing supporting documents where a genuine question arises about a particular transaction, valuation, payment or distribution.

However, the scope of disclosure depends upon the circumstances. The courts have recognised that beneficiaries do not have an automatic right to every document simply because it can broadly be described as relating to a trust or estate. Issues of relevance, confidentiality, the interests of other beneficiaries and proportionality may all need to be considered.

An executor faced with a very wide request should therefore consider what information is actually required to explain or verify the administration rather than either refusing the request entirely or providing the whole file without review.

What about legal advice?

Particular care should be taken before disclosing correspondence between an executor and their solicitor.

Legal advice obtained in the ordinary course of administering an estate may, in some circumstances, be material which beneficiaries are entitled to see. The position can be different where advice has been obtained by an executor for the purpose of dealing with an actual dispute between the executor and a beneficiary.

The courts have recognised this distinction when considering privilege in the context of executors and trustees. Advice obtained for the proper administration of the estate may stand differently from advice obtained to defend a hostile claim against the executor.

Executors should therefore take advice before disclosing solicitor correspondence where litigation has arisen or is anticipated.

What if a beneficiary asks for supporting evidence?

A request for evidence does not necessarily require disclosure of every invoice, bank statement or piece of correspondence generated during the administration.

Where, however, a beneficiary raises a specific and reasonable question, supporting evidence may help resolve the issue quickly.

For example, if a beneficiary queries the sale price of a property, it may be appropriate to provide the valuation and completion statement. If professional fees or an estate liability are questioned, the relevant entry in the accounts and appropriate supporting documentation may assist.

The purpose should be to provide sufficient information to demonstrate how the estate has been administered, rather than encouraging disproportionate disclosure which increases costs without resolving the underlying concern.

When should an executor seek legal advice?

Executors should consider obtaining advice where a request goes beyond a straightforward request for estate accounts or where there is already a dispute between the parties.

In particular, advice may be appropriate where a beneficiary alleges that assets are missing, questions payments made by the executor, challenges professional costs, alleges that the executor has acted in breach of duty, demands extensive underlying documentation or threatens an application to court.

Advice should also be sought before refusing disclosure altogether or where the executor is unsure whether documents contain privileged, confidential or sensitive information.

An executor should be particularly careful where their own interests conflict with those of the estate. A request for accounts can sometimes be the first stage of a wider dispute concerning the administration of the estate or the executor's continued suitability to act.

Why does good record keeping matter?

Many disputes over estate administration begin not because an executor has necessarily acted improperly, but because beneficiaries have not been given enough information to understand what has happened.

Maintaining clear accounts from the outset, preserving invoices and bank records and recording the reasons for significant decisions can substantially reduce that risk.

It can also place an executor in a much stronger position if allegations are later made. Rather than attempting to reconstruct events months or years later, the executor can demonstrate how assets were dealt with and why particular payments or decisions were made.

Ultimately, an executor is accountable for the administration of the estate. Providing proportionate information is part of that responsibility, but this does not mean that every request for every document must automatically be accepted.

Where the extent of the executor's disclosure obligations is unclear, or a request forms part of a wider dispute, obtaining advice at an early stage can help ensure that the executor complies with their duties without unnecessarily exposing the estate or themselves to further risk.