When Good Intentions Cost Executors

1 September, 2026 3 minutes reading time

Agreeing to act as an executor often feels like an honour, but the legal reality can quickly bring on a cold sweat. Personal liability is real. If you distribute funds incorrectly, miscalculate inheritance tax, or overlook an unknown creditor, claimants can pursue your personal bank account to recover the money.

The cautionary tale every probate lawyer remembers is the famous case of Re Diplock [1948] Ch 465. In that estate, the executors acted in good faith, distributing substantial sums (worth millions today) to more than a hundred charities in accordance with the will. Unfortunately, a single drafting flaw invalidated the clause: the will directed funds to ‘charitable or benevolent’ objects. Because ‘benevolent’ is not strictly charitable in law, the bequest failed entirely. The deceased’s next of kin challenged the payments, leaving the well-meaning executors facing enormous personal exposure for funds they had already paid away.

Yet, despite the cautionary tales, English probate law does not set executors up to fail. While the office carries strict fiduciary responsibilities, legal liability has clear boundaries and accessible statutory protections.

Statutory Notices Shield You from Unknown Creditors

Executors do not need psychic powers to uncover every debt the deceased incurred. Section 27 of the Trustee Act 1925 allows you to place formal statutory advertisements in The London Gazette and in a local newspaper circulating in the area where the deceased owned land or lived.

Once the statutory two-month notice period has expired, you can safely distribute the estate based solely on the claims you have received. If a surprise creditor surfaces months later, they cannot demand payment from your personal funds. Their only recourse is to trace and pursue the beneficiaries directly.

The Court Can Forgive Honest Mistakes

The law draws a clear line between reckless mismanagement and genuine, honest errors. Under Section 61 of the Trustee Act 1925, the court has discretion to relieve an executor of personal liability if they acted ‘honestly and reasonably, and ought fairly to be excused.’

Seek prompt professional advice and document your decisions carefully. Formal valuations and transparent accounts provide the evidence a court needs to confirm reasonable conduct.

Inheritance Act Time Limits

Disappointed relatives or financial dependants can challenge an estate under the Inheritance (Provision for Family and Dependants) Act 1975. Crucially, claimants must bring these claims within six months of the date the probate registry issues the Grant of Probate.

Waiting six months before distributing the remaining estate avoids the problem of having to get money back from beneficiaries who have spent it. In practice, you should always add a couple of extra months if you are aware of a potential dispute, in case a claim was issued just before the six-month deadline but delayed by court backlogs before reaching you.

Our Advice

Serving as an executor requires diligence, but you do not have to bear the risk without protection. By advertising for creditors and observing the statutory waiting periods, you protect your personal assets. Seeking early guidance on ambiguous clauses in the will helps you carry out your duties with confidence.

If you have questions about administering an estate or any other matter, please don’t hesitate to contact us. We’re here to help.

Please note that all views, comments or opinions expressed are for information only and do not constitute and should not be interpreted as being comprehensive or as giving legal advice. No one should seek to rely or act upon, or refrain from acting upon, the views, comments or opinions expressed herein without first obtaining specialist, professional or independent advice. While every effort has been made to ensure accuracy, Curtis Parkinson cannot be held liable for any errors, omissions or inaccuracies.

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