When someone dies, the personal representative (commonly known as an executor) is responsible for identifying and protecting estate assets, paying the deceased’s debts and expenses, handling required paperwork and distributing the remaining assets according to the decedent’s will. A personal representative has a fiduciary duty and may be liable for any losses caused by breaching that duty.
Most personal representatives take their responsibility seriously and carry out their duties with integrity and transparency. However, problems can arise when they fail to manage estate property properly, won’t provide information to heirs and other beneficiaries, favor one beneficiary over another or use estate assets for personal benefit.
Beneficiaries have legal options
A personal representative can be removed for certain forms of misconduct, such as:
- Failing to account for the sale of property
- Failing to produce estate assets when required
- Wasting or mismanaging the estate
Here are some red flags to look for if you believe a personal representative may be mismanaging an estate:
- They won’t provide information: A personal representative who refuses to provide information about estate assets, expenses, debts or distributions may raise concerns. A lack of communication doesn’t automatically establish wrongdoing, but if a personal representative refuses to answer reasonable questions or won’t provide information, court intervention may be appropriate.
- Estate assets are missing: Another warning sign is when property that should belong to the estate cannot be located. A personal representative has a duty to identify, protect and properly administer estate assets. If assets disappear or can’t be accounted for, beneficiaries may have cause to investigate.
- They use estate money for personal expenses: Estate funds should not be treated like the personal bank account of the person administering the estate, such as paying personal bills, making unauthorized loans or covering expenses unrelated to administering the estate. Any transaction involving estate property may require scrutiny when the personal representative has a personal interest in the transaction.
- One beneficiary appears to be receiving preferential treatment: Family conflicts can become difficult when one beneficiary is also serving as the personal representative. There may also be cause for concern if the personal representative gives one beneficiary estate property before distribution, allows one beneficiary to purchase property at an unusually favorable price or uses estate resources for the benefit of one family member.
Beneficiaries who suspect estate mismanagement don’t have to accept the situation. A legal professional can review the circumstances, examine the estate’s records and explain what legal options may be available. Taking action early can help protect estate assets and prevent further losses.