An executor is responsible for managing an estate’s assets after a loved one has passed away. During the probate process, the executor will resolve the estate’s debts, file taxes and distribute any remaining assets to beneficiaries. An executor has a fiduciary duty to always act in the best interests of the estate and beneficiaries, which means handling the estate’s assets with honesty and professionalism.
An executor can breach their fiduciary duty if they fail to act in the interests of the estate. This could happen if an executor acts in their own interests or fails to take steps to protect the estate’s value. As a result, beneficiaries may face financial losses. Here are a few signs that an executor has breached their fiduciary duty toward the estate:
1. Mismanagement of assets
An executor can breach their fiduciary duty by mismanaging assets. This could happen in a few ways, such as failing to use estate assets to resolve debts or taxes. Or, an executor may neglect assets, such as real estate, causing it to deteriorate. Failing to value assets properly before distributing assets may also be considered a mismanagement of assets.
2. Using assets for self-gain
An executor may use estate assets for their own personal gain. The assets may be misused for the executor’s personal expenses. Or, the executor may inflate their fees to administer the estate.
3. Ignoring the testator’s last wishes
A will often has clear expectations for how the estate should be administered after the testator passes away. If the executor ignores the terms of the will, it could be seen as a breach of fiduciary duty.
If an executor has breached their fiduciary duty, then it is often important for beneficiaries to understand their legal options. In some cases, an executor may be removed and held liable for any financial losses. Legal guidance can help beneficiaries build a case against an executor.