You think you have an indemnity? Think again!

Priya Wagjiani

One of the most widely relied upon protections available to executors and trustees is the right of indemnity out of the estate or trust fund for liabilities properly incurred in the course of administration. In practice, this principle often provides reassurance to personal representatives faced with difficult decisions or contentious litigation. Executors are frequently advised that, provided they act in good faith in the execution of their duties, the estate will ultimately bear the cost of the legal process.