One of the most common concerns raised by executors is whether they can become personally responsible for legal fees arising during the administration of an estate.

For many individuals, agreeing to act as an executor appears relatively straightforward at the outset. However, once disputes arise, beneficiaries challenge decisions, or litigation begins, questions quickly emerge around liability for legal costs.

In most cases, executors are entitled to recover costs from the estate where those costs have been reasonably and properly incurred during the administration of the estate. However, that protection is not unlimited.

Where an executor has acted unreasonably, pursued unnecessary litigation, or failed to administer the estate properly, the court may decide that the executor is personally liable for some or all of the costs.

At ARC Costs, we regularly advise on disputes involving executors, estate administration, and the recoverability of legal fees. Understanding when executors may become personally liable for costs is essential for both solicitors and personal representatives managing estates.

What is the role of an executor?

An executor is responsible for administering the estate of a deceased person in accordance with the terms of the will. The role commonly includes:

• Identifying the estate assets and liabilities
• Applying for probate
• Paying debts and taxes, including inheritance tax where applicable
• Collecting and distributing assets
• Managing disputes involving the estate
• Ensuring the estate is administered correctly

The executor owes duties to the beneficiaries and must act in the best interests of the estate throughout the process.

Although many estates proceed without difficulty, disputes can arise unexpectedly, particularly where there are disagreements between beneficiaries or concerns about how the estate has been managed.

Are executors personally liable for legal costs?

The general position is that executors are not usually personally liable for legal costs that have been reasonably incurred in the proper administration of the estate. In most circumstances, those costs are paid by the estate itself.

This reflects the principle that executors should not be penalised for carrying out their duties properly. Where legal work is necessary for the administration process, the costs are generally treated as an expense of the estate.

Examples may include:

• Obtaining probate
• Taking specialist legal advice
• Dealing with tax matters
• Resolving ambiguities in the will
• Defending claims against the estate

However, the position changes where the executor’s conduct becomes unreasonable.

When can executors become liable for legal costs?

The court may decide that executors liable for legal costs personally where they have failed to act appropriately during the administration process.

This often arises where the executor:

• Has acted unreasonably
• Pursues unnecessary litigation
• Causes avoidable delay
• Fails to comply with court directions
• Places personal interests above those of the estate
• Continues litigation that should reasonably have settled

The court will examine whether the costs incurred were necessary and proportionate in the circumstances.

Where they were not, the executor may lose the protection normally afforded to personal representatives.

Defending claims against the estate

One of the most common areas where disputes over costs arise is where executors are involved in defending the claim brought against the estate. Examples may include:

• Inheritance Act claims
• Challenges to the validity of a will
• Disputes involving beneficiaries
• Claims relating to estate administration

Executors are often required to take legal advice in these situations to protect the estate and ensure the matter is dealt with properly.

Where the executor acts reasonably and neutrally, the legal costs of defending the claim will often be recoverable from the estate.

However, problems arise where the executor becomes personally involved in the dispute or adopts an unnecessarily aggressive position.

The importance of acting reasonably

Whether costs are recoverable often comes down to conduct. The court will consider whether the executor behaved reasonably throughout the administration process and any related litigation.

An executor who seeks appropriate legal advice, follows professional guidance, and acts impartially is far more likely to recover costs from the estate. Conversely, where an executor has acted unreasonably, the court may refuse to allow certain costs to be recovered.

Examples of unreasonable conduct may include:

• Pursuing weak or unnecessary claims
• Ignoring professional advice
• Failing to engage with settlement discussions
• Delaying administration without justification
• Causing unnecessary disputes between beneficiaries

The court has broad discretion when determining liability for costs.

Costs properly incurred during estate administration

The phrase “properly incurred” is central to disputes involving executors and legal costs. Not every legal expense automatically becomes recoverable simply because it arose during probate.

The court will examine whether the work undertaken was genuinely necessary for the administration of the estate and whether the level of costs was proportionate.

Typical examples of costs that are often regarded as properly incurred include:

• Probate applications
• Advice relating to inheritance tax
• Estate administration advice
• Property sale or transfer work
• Neutral participation in litigation involving the estate

Where the work benefits the estate as a whole, recovery is generally more likely.

What happens if the court finds the executor acted unreasonably?

If the court held that an executor has acted improperly or unreasonably, the consequences can be significant. The executor may become personally responsible for:

• Their own legal costs
• Costs incurred by beneficiaries
• Costs incurred by other parties to the litigation

This can create substantial personal exposure, particularly in high-value disputes. In some cases, the court may also refuse to allow the executor to recover previously incurred costs from the estate.

This is why executors should seek specialist legal and costs advice at an early stage where disputes arise.

How solicitors can help protect executors

Solicitors play an important role in helping to protect executors from personal liability. This includes:

• Providing clear advice on duties and obligations
• Ensuring neutrality is maintained where appropriate
• Advising on settlement opportunities
• Managing litigation proportionately
• Keeping detailed records of decisions made

The clearer the evidence that the executor acted reasonably and followed professional advice, the stronger the argument that costs should remain payable from the estate.

The role of costs specialists in executor disputes

Where disputes over legal fees arise, specialist costs advice can become essential.

This may include disputes involving:

• Whether costs were properly incurred
• Whether costs should be paid by the estate
• Challenges brought by beneficiaries
• Proportionality of legal costs
• Recovery of litigation costs following disputes

At ARC Costs, we regularly advise on disputes involving executors and estate administration costs.

Our work includes reviewing legal fees, advising on recoverability, preparing and challenging Bills of Costs, and supporting matters through detailed assessment proceedings.

Why executors should seek early legal advice

Many executors are family members with no prior experience of estate administration or litigation. As a result, disputes can escalate quickly without the executor fully understanding the risks involved.

Early legal advice is often critical in helping executors:

• Understand their obligations
• Avoid unnecessary disputes
• Protect themselves from personal liability
• Ensure the estate is administered correctly

In many cases, proactive advice at an early stage can prevent significant costs issues later.

How ARC Costs can assist

At ARC Costs, we assist solicitors, executors, and beneficiaries with disputes involving legal costs in estate administration and probate litigation.

Our services include:

• Advising on recoverability of executor costs
• Reviewing whether costs were properly incurred
• Assisting with disputes involving beneficiaries
• Preparing and challenging Bills of Costs
• Supporting solicitor-client assessments and detailed assessment proceedings

We understand the complexities involved where probate disputes become contentious and where questions arise regarding whether executors are personally liable for costs.

Need advice on executor liability for legal costs?

If you are dealing with a dispute involving executor costs, or concerns about whether legal fees should be paid personally or by the estate, specialist advice can help protect your position.

At ARC Costs, we provide practical and commercially focused advice on probate costs, executor disputes, and estate-related litigation costs.

To discuss how we can assist feel free to give us a call on 01204 397302 or send an email to info@arccosts.co.uk.

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