When will the Court Remove an Executor?
When will the Court Remove an Executor? What WA Farming Families Need to Know
At Granich Partners, we’re trusted by farming families across Western Australia for practical, experienced advice in deceased estates involving complex farming land and asset structures . A complex question is under which circumstances an executor of an estate can be removed.
A recent decision in the Queensland Supreme Court highlights the importance of appointing the right executor, especially in family farming and business contexts.
The Case: Permewan Estate and Executor Conflict
Mrs Permewan passed away leaving an estate valued at approximately $3 million. Her Will appointed her son, Scott, as sole executor and sole beneficiary. She also had two daughters, Donna and Marla, who were intentionally excluded from their mother’s Will.
Mrs Permewan controlled Zalerina Pty Ltd, the corporate trustee of the Lotus Trust, a discretionary trust in which all three children were beneficiaries. Her Will left all shares in the corporate trustee to Scott, effectively giving him full control of the trust upon her death.
Before her passing, Mrs Permewan signed a Promissory Note, gifting $3 million to the Lotus Trust, which then lent the money back to her - secured by a mortgage over her estate. As this debt remained outstanding at the time of her death, her estate had no residual value. This structure effectively neutralised any family provision claims that Donna or Marla may have pursued.
Executor Misconduct and the Court’s Decision
During legal proceedings, Donna applied to have Scott removed as executor. Evidence was presented demonstrating that Scott had verbally abused his sisters and stated he would make legal action “as hard and expensive as possible.”
The Court ultimately removed Scott as executor as his roles as controller of the Lotus Trust, executor and a sole beneficiary of his mother’s estate were a conflict of interest. The Court found there was no confidence he would act in accordance with his legal obligations in each role.
While the validity of the Promissory Note transaction is yet to be fully determined, the case highlights a critical principle: executors must be impartial and act in the best interests of the estate, particularly when family trusts are involved.
Why This Matters for Succession Planning in Perth and Rural WA
This case is an example for individuals involved in farm succession planning involving farmland business handovers, or complex trust and asset structures. At Granich Partners, we are leaders in succession planning throughout Western Australia, with decades of experience assisting farming families, rural business owners, and managing complex, high-value estates.
Work With WA’s Trusted Rural Succession Lawyers
Solicitors Alex Granich and Jayne Trenka offer specialist expertise in estate planning, trust law, and rural and commercial property matters, backed by a reputation as two of WA’s most experienced commercial lawyers. Whether you’re preparing to transfer a farm to the next generation, use trusts to hold and protect your assets, or resolve family estate disputes, we can help.
We provide strategic advice to ensure:
fair treatment of all beneficiaries;
asset protection through trust and property law structures;
compliance with complex legal obligations;
conflict resolution before disputes escalate.
Get Succession Planning Right - Talk to Perth’s Deceased Estate Experts
If you’re seeking advice on succession planning, farm handovers, or have concerns regarding executor misconduct, contact Granich Partners today. We support clients throughout Perth, the South West, and regional WA.
Call us on (08) 9324 2111 or Contact Us using the form below to request an appointment with one of our solicitors