What is Self-Dealing and how to avoid it?
Anyone administering an estate as either executor or personal representative has a general duty not to make a profit from the estate or creating a situation where their interests come into conflict with their duties.
Most often, this can occur when an executor wants to purchase an estate asset but does not have:
- the agreement of all beneficiaries over 18 and having mental capacity; or
- has not obtained Court permission.
Historically the Courts have been reluctant to authorise an executor to acquire estate assets as the Court was frequently unable to identify the honesty of an executors and would err on the side of caution. In recent years a more relaxed approach has been taken.