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When a will is contested, one of the most pressing concerns for all parties involved is understanding who will bear the costs of the legal proceedings. The financial implications can be substantial, and the rules governing cost allocation in will disputes are complex and often misunderstood.
The general rule: Costs follow the event
In most civil litigation, including will disputes, the general principle is that “costs follow the event” – meaning the unsuccessful party pays the legal costs of the successful party. However, will contests often involve special circumstances that can alter this standard approach.
Courts recognise that estate disputes are inherently different from commercial litigation, as they often involve family members and emotional circumstances that may justify departing from the usual cost rules.
Key factors courts consider
- The conduct of all parties throughout the proceedings
- Whether the dispute was reasonable to bring or defend
- The complexity of the case and legal issues involved
- Whether settlement opportunities were reasonably pursued
- The financial circumstances of the parties
Practical considerations
Before initiating or defending a will dispute, it’s crucial to understand the potential cost implications:
Obtain legal advice early
Consider alternative dispute resolution
Document your position
Key factors courts consider
- The conduct of all parties throughout the proceedings
- Whether the dispute was reasonable to bring or defend
- The complexity of the case and legal issues involved
- Whether settlement opportunities were reasonably pursued
- The financial circumstances of the parties
Key factors courts consider
- The conduct of all parties throughout the proceedings
- Whether the dispute was reasonable to bring or defend
- The complexity of the case and legal issues involved
- Whether settlement opportunities were reasonably pursued
- The financial circumstances of the parties
Need expert guidance?
Will disputes are complex matters that require experienced legal representation. Our team can help you understand your options and the potential costs involved.
Offering FAQ's
If a beneficiary disputes the will, who pays the legal costs?
It depends. Courts generally apply the “costs follow the event” rule — meaning the losing party pays — but will disputes are treated differently because of their family nature. Courts consider the conduct of all parties, whether the dispute was reasonable to bring, and whether settlement was genuinely pursued before awarding costs. In some cases, costs are paid from the estate itself, which affects all beneficiaries.
Can legal costs from an estate dispute reduce what beneficiaries receive?
Yes, they can. When costs are ordered to be paid from the estate rather than by an individual party, the total value available for distribution shrinks accordingly. This is one of the key reasons early legal advice and exploring mediation before litigation are so important — the cost of a contested dispute can significantly erode the estate.
As the estate administrator, am I personally at risk if a dispute goes wrong?
Potentially. Administrators can face personal liability if they handle distributions incorrectly, fail to manage creditor claims properly, or make decisions that prejudice beneficiaries — particularly in a contested situation. Getting proper legal guidance before making any distributions protects you personally and ensures the estate is administered correctly under the law.
