Executor's liability for costs in estate administration

In the recent Victorian decision of Caruana & Ors v Caruana the deceased's son was removed as executor of the estate and was not allowed to access estate funds for his costs. Instead, he had to pay his own legal costs and was also ordered to pay the other beneficiaries' costs of the litigation.

This case illustrates the care executors must take when administering estates, particularly where there are financial dealings between that person and the deceased, as the consequences for them can be significant.

During his lifetime, the deceased loaned $300,000 to his son to purchase a property. During the final five years of the deceased's life, he moved into the property and was cared for by his son and his son's wife until he died. As the deceased required a wheelchair, his son also had to make renovations to the house to make it wheelchair friendly.