What happens to a pending sale if a beneficiary contests the will partway through the deal?
It depends heavily on the stage the sale and the estate administration are at. If the trustee already has a valid Certificate of Appointment and the challenge comes after that authority is established, a pending sale can often still proceed, since a will challenge alone doesn't automatically strip the trustee of authority already granted, though a court could intervene in serious cases. If the challenge happens before a certificate has been issued, it can be far more disruptive, since a formal objection filed with the court can block a certificate of appointment being issued on the will in question, which in turn stalls any closing that depends on that authority being confirmed.
A sale already under contract can also face practical problems even if it isn't legally blocked outright, since a buyer's lawyer who becomes aware of a live will dispute will often want reassurance about the trustee's authority before closing. Because outcomes vary so much based on timing, the specific ground for the challenge, and whether a certificate has already issued, an estate trustee facing this situation should get legal advice immediately to understand whether the sale can proceed, needs to be paused, or requires court direction.
Key takeaways
- The impact depends heavily on whether a Certificate of Appointment has already been issued.
- A challenge filed before a certificate issues can block it from being granted at all.
- Even a legally unaffected sale can face practical delays if a buyer's lawyer has concerns.
- Get legal advice immediately to assess whether the sale can proceed, pause, or needs court direction.