The risks of nominating a family member as executor

THE love of money is the root of all evil. And this is what often happens when a family member has a role to play when it comes to devolving assets for a deceased estate when they have been appointed as executors.

- NICOLA MAWSON

Several court cases deal with misdeeds or conflicts of interest by family members of someone who has died and are then in a position of power when it comes to wrapping up the dead person's estate.

In one, a gentleman called Ronnie died and appointed his life partner, Susanna, and his tax practitioner as co-executors. Ronnie's son, Sean, and Susanna were set to inherit his estate in accordance with Ronnie's will.

This is not illegal. Capital Legacy explained that it is possible for someone to both be a beneficiary and executor of a will and, in fact, there are times when this makes practical sense.

It said that, however, when family or friends are appointed, a co-executor is also appointed.

Appointing a professional also means there's a safety net because, if they become incapable of doing their duties, should they, for example, also die, there will be a contingency plan in place as someone else from their business can take over.

Sean felt the estate was being mismanaged and, so, went to the Cape Town High Court asking that the executors be removed and the Master replace them. He argued that the two executors, especially Susanna, had a conflict of interest because she couldn't be fair when she was set to benefit.