Recent headlines involving high-profile celebrities and ultra-high-net-worth (UHNW) individuals have highlighted the dilemmas which can arise when someone dies without making a will. Research also shows that the number of people who have died intestate reached a five-year high in 2024 – jumping 17% on the previous year. These situations underscore the importance of estate planning, especially when substantial assets and intricate family dynamics are involved. When emotions are highly-charged the potential for disputes among partners, family members, and dependents increases. However, if it does happen there is a solution – appoint an independent administrator.
What does an independent administrator do?
When someone dies intestate, potential claimants may make an application for the court to appoint an independent administrator to take control of the estate with their powers set by way of an order from the appointing court. In scenarios where UHNW individuals had global assets held within complex trust and corporate structures, having an independent administrator appointed with global reach, asset identification, protection and recovery expertise is imperative as the person would have three prime focuses.
Investigating the assets within the estate
The independent administrator would need to conduct thorough investigations globally using their powers granted by the court to identify all assets belonging to the estate. This includes property, shareholdings, and any other valuable assets.
Taking control of and valuing the estate
Once the assets are identified, they'll take control of them and determine the overall value of it. This step is essential for making informed decisions regarding distribution, settlement of debts, and any solvency issues.
Recovering assets for the benefit of estate creditors and beneficiaries
Where required, the independent administrator may need to realise assets to generate funds necessary for settling outstanding debts and distributing the remaining value to beneficiaries.
Additionally, they'll consider the impact of any potential litigation on the estate, such as any competing claims that may arise (including Section 75 Act claims). They'll formulate a strategy to ensure that maximum value is obtained to pay the estate creditors and for the ultimate benefit of the beneficiaries. This approach may involve negotiating settlements, pursuing legal actions, and managing disputes that could affect the estate’s value.
If it transpires there are solvency issues with the estate or assets have been dissipated prior to the death of an individual, having an independent administrator with the expertise and skills required to administer the estate is imperative. There's also an additional benefit of being able to take steps to administer the estate pursuant to an Insolvent Deceased Estate Administrations Order, which has tangible benefits. These include a look-back period to bring claims against third parties to recover assets which may have been dissipated and need to be brought back into the estate.
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The value of professional intervention
In high-profile cases where public scrutiny is intense, the experience and credibility brought by professional practitioners to manage complex situations is crucial. For families or family offices facing the uncertainty of a deceased estate without clear directives, understanding how an appointed practitioner could help facilitate a resolution is invaluable. In moments of grief and confusion, a structured approach to estate management can provide the clarity needed to honour the legacy of a loved one while navigating the complexities of their estate.
When high-profile celebrity cases hit the news, it may serve as a powerful reminder to put your affairs in order while you can. But it’s also an opportunity to discuss the risks of intestacy with clients, the importance of estate planning, and the value of professional intervention where disputes arise. These are always tough situations for everyone involved, but an independent administrator can play a role in making it easier and delivering the best outcome possible.
For more insight and guidance, get in touch with Hannah Davie and Ami Sweeney.
