In a general sense, if someone has a fiduciary duty to another, it means they are expected to act in the best interests of the other party. They are not supposed to focus on their own needs or desires but must take steps to uphold the other party’s rights.
In the estate planning and probate context, the estate executor has a fiduciary duty to act in the best interests of both the deceased person who created the estate plan and the beneficiaries named in that plan. The executor’s job is to administer the estate—inventorying assets, distributing estate planning documents, paying off debts, etc.—and prioritizing their own interests could violate this fiduciary duty.
Examples of potential violations
One common issue that may arise is if an estate executor removes assets from the estate. For instance, they may be the only person legally allowed to enter the home while inventorying assets. However, if they take family heirlooms or other tangible assets for themselves—despite those assets being designated for others in the estate plan—they have violated their fiduciary duty by acting in their own best interests.
Another example is the misappropriation of estate funds. Suppose the deceased left behind a bank account intended to be used for settling outstanding debts. If the estate executor instead transfers the money into their own personal account, they have violated the rights of all other involved parties.
Navigating a dispute
These types of issues can become highly complex. An estate executor may claim they were simply trying to fulfill their duties and manage a complicated estate plan, while other beneficiaries may allege that misconduct occurred. When disputes arise, all parties must be well aware of their legal options.