An $8 Million Estate – When Executors of a Will Get it Wrong

A DIY Attempt To Save Money Meant Stress, Disputes, and Personal Liability

‘You do realise you’re personally liable if you make a mistake? If you don’t carry out the terms of the will exactly, it’s going to leave you legally exposed.’
– Paul Falzon

The names and identifying details in the following case studies have been changed to protect client privacy. While certain information has been modified to maintain confidentiality, the situations and outcomes described are based on real client experiences.

Key Facts

• Matter Type: International Estate Administration / Executor Liability
• Clients: Two elderly female Executors
• Estate Value: $8 million
• Location: Malta and Victoria
• Issue: Incorrect $100,000 distribution, risking personal liability
• Strategy: Executor’s Commission offered as trade-off for beneficiary release
• Outcome: Dispute resolved, Executors protected from personal liability

The Original Situation – Executors Trying To Do the Right Thing

Two elderly women were appointed Executors of a Will. It involved a substantial international estate that was valued at approximately $8 million, with assets located in both Australia and Malta.

Managing an estate across borders is notoriously difficult, and the original Maltese solicitors were unable to move the matter forward. So the two Executors contacted Maltese Law experts Falzon Legal, and we resolved the matter in a single weekend.

Impressed with the efficiency, the Executors asked Falzon Legal to also help administer the broader estate. However, the two ladies quickly became concerned about the costs of this professional administration, despite our repeated warnings about personal liability if they made a mistake.

Yet, they decided to manage the estate themselves, with a little assistance from other, general lawyers as needed. We parted ways and didn’t hear from them again … until a phone call three and a half years later:

‘Remember us? Well, we’ve got a problem. The lawyers we used after you, they gave us the wrong advice. We’ve given $100,000 to the wrong person.’

The Challenge – A $100k Error and Annoyed Beneficiaries

The original Will draft stated that a $100,000 gift would go to the deceased’s sister. As the sister had passed away before the estate was finalised, the gift should have gone back into the residue of the estate and been redistributed among the 16 remaining beneficiaries.

However, the general solicitor, with little understanding of either Maltese or Australian Wills and Estates Law, incorrectly advised the Executors that the money should now go to the sisters’ surviving children. Acting on that advice, the Executors transferred the funds.

By the time the mistake was discovered, it was too late.

As they had distributed the gift incorrectly, the Executors had breached the terms of the Will, leaving them potentially personally liable for the loss. And, with 16 beneficiaries closely scrutinising the estate management, the risk of legal action and subsequent legal costs was very real.

Taking Action With Falzon Legal – The Commission Gambit

We didn’t ask the beneficiaries to just forget about it and drop any ideas of possible action, that wasn’t going to work. Instead, we innovatively created a financial incentive for the beneficiaries to cooperate:

• The Executor’s Commission – on a complex estate matter like this, Executors are entitled to apply to the court for a commission, usually 3-4 percent. On an $8M estate, this could be as much as $320,000.
• The trade-off – we offered the beneficiaries a choice. If they signed a release, agreeing not to sue the Executors for the $100,000, the Executors would waive their right to the $320,000 commission.
• The win – the beneficiaries would end up with more money in their pockets, because the $320,000 commission stayed in the estate, and they would get paid more quickly.

This created a practical commercial solution that potentially saved all parties from further litigation, delay, and expense.

The Outcome – The Crisis Was Averted

By strategically using the potential Executor’s Commission as leverage, Falzon Legal found a powerful route for the Executors to resolve the dispute and protect themselves from personal liability.

What had begun as a potentially devastating $100,000 mistake was transformed into an outcome that the beneficiaries were broadly willing to support.

While some formalities and final agreements are still being completed, the matter is now progressing toward final distribution under a structured arrangement. This is designed to protect the Executors’ personal assets and minimise the risk of future claims.

Key Takeaways for You

This case highlights the serious risks that Executors face when administering estates without specialist legal guidance. What started as an attempt to save money on legal fees turned into years of stress, multiple law firms, ongoing disputes, and additional legal costs.

International estates, complex Wills, and unclear distribution clauses demand careful legal interpretation. A seemingly small mistake can expose Executors personally, even when they acted honestly and relied on legal advice.

What You Should Do:

• Obtain specialist estate administration advice before distributing estate from an expert Wills and Estates lawyer.
• Consider appointing a lawyer as an Executor to prevent legal issues.
• Never assume all lawyers have expertise in complex estate matters or international estates.
• Understand that Executors can become personally liable for incorrect distributions.
• Seek clarification if a Will is unclear or open to interpretation.

How Falzon Legal Can Help

If you’re administering an estate, worried about Executor liability, or dealing with an international estate dispute, obtaining the right advice early can prevent costly mistakes:

• Executor Advice and Liability – understand your duties and reduce the risk of personal exposure.
• Probate and Estate Administration – guidance through the correct administration of complex estates.
• International Estates – assistance dealing with overseas assets, beneficiaries, and cross-border estate issues.
• Will Disputes Lawyers – experienced representation across complex estate litigation and contested estates.
• Beneficiary vs Executor Disputes – safeguarding your personal and legal interests.

Relevant Executor and Beneficiary FAQs

Can You Remove an Executor From a Will?

Yes. If you’re a beneficiary and you believe that an Executor is failing in their duties, you can apply to the Supreme Court of NSW for their removal. That said, they will only act if it can be shown that the Executor is acting dishonestly, delaying the administration of the estate, or is unfit to act.

Who Can Be the Executor of a Will?

The Executor is the person named by the Testator in their Will. It’s typically someone that the Will-maker knows well and trusts. Anyone over 18 can be nominated as an Executor, and could be a family member, close friend, or professional such as a lawyer.

Can Executors Be Found Liable for Estate Mistakes?

Yes! Executors have legal duties when administering estates. If they distribute assets to the wrong people, incorrect amounts, fail to follow the terms of the Will, or cause financial loss to beneficiaries, they can potentially become personally liable for those losses.

Are International Estates More Complicated to Administer?

Almost always. International estates can involve different legal systems, overseas property laws, foreign tax considerations, translation issues, and multiple jurisdictions. Even relatively small mistakes can create serious delays and legal complications. Speak to a lawyer experienced in international estates.

Should I Administer an Estate Myself to Save Money?

It’s understandable that DIY administration may seem appealing as a way to keep more of the estate’s value. But it often proves to be a false economy. In Australia, Executors are personally liable for any errors, which means just one mishap could mean you having to reach into your own pocket to cover the mistake.

While it’s theoretically possible to do it yourself on simple estates, if the matter is complex or involves international estates, the risk is too high. Most legal fees for estate administration are paid directly by the estate, not the Executor, giving you a professional shield at no personal expense.