Yes, but I still need to know where we, as executors, would be expected to obtain the funds from to pay costs, in the event that we lost.
Let me put it another way: as I understand it, any legal costs incurred in the administration of an estate can be paid out of the assets of the estate. So if the estate were not distributed at all meantime, and an action were raised, all costs could be met from its assets. Is that true?
Then we move to Scenario B, in which the executors have drawn their shares from the estate bank account, and an action is then raised, for whatever reason. Can the executors defray their costs by drawing them from this residue (which is essentially still 'the estate') or must they leave it intact and pay from their own pockets, in order that this share can some day be paid out in full?
What we are faced with is the need to know if we would be putting ourselves at any degree of risk by drawing our shares now, instead of leaving the entire estate unclaimed until the intentions of the third party are known.