Alexander and Alexander v Oliver and Anderson as Executors of the Estate of Nicholas Charles Feros, deceased

The applicants, Maroula Alexander and her children, brought this proceeding against the executors of the estate of Nicholas Charles Feros, the late husband of Maroula. The dispute centres on the distribution of the estate, particularly the sum required from Maroula under an agreement reached with the executors after the settlement of family provisions claims by the sons of the deceased. Maroula agreed to contribute to the provision for one of the sons, with the executors to notify her of the sum required. The executors and their solicitors did not foresee a tax liability arising from the payment of superannuation funds into the estate, leading to a disagreement over the amount Maroula should contribute. The applicants sought clarification on whether the executors acted honestly and reasonably and if Maroula’s contribution should account for the tax liability.

The court was required to determine whether the executors acted honestly and reasonably in failing to consider the tax liability when notifying Maroula of the required sum for her contribution. The court also needed to advise the executors on the appropriate course of action if Maroula did not pay the required sum within a specified period, including whether they could sell a property of the deceased and whether they were justified in taking no further steps to ascertain or transfer property interests in Greece.

The court found that the executors acted honestly and reasonably in not considering the tax liability when notifying Maroula of the sum required for her contribution. The court advised that the executors would be justified in giving notice to Maroula of the sum required, taking into account the estimated tax liability. If Maroula did not pay the required sum by the specified date, the executors would be justified in selling the property of the deceased. The court also found that the executors were justified in taking no further steps to ascertain or transfer property interests in Greece.

The court ordered that the originating application be dismissed and advised the executors on the appropriate steps to take if Maroula did not pay the required sum. The executors were to notify Maroula of the sum required, taking into account the tax liability, and could sell the specified property if she failed to pay. They were also justified in taking no further steps to ascertain or transfer property interests in Greece. The respondents were to forego any claim or entitlement to executors’ commission.