What Are Examples of Executor Misconduct? (2024)

  • By Scott Rahn

An executor is a person who is appointed to carry out the instructions of a will after the death of the person who made it.

The executor has a fiduciary duty to the beneficiaries of the estate, which means that they have to act in good faith and in the best interests of those beneficiaries. Unfortunately, sometimes executors engage in misconduct, which can create problems for the beneficiaries.

Some examples of executor misconduct include:

  • Participating in theft, misappropriation, or embezzlement.
  • Harming the interests of the estate and its beneficiaries.
  • Mismanaging estate assets.
  • Failing to pay the estate’s creditors, taxes, or other expenses.
  • Withholding inheritances or needlessly delaying the administration of the estate.
  • Hiding, omitting, or otherwise misrepresenting estate assets.
  • Collecting inflated fees.
  • Disobeying court orders.

As you can see, there are many ways in which an executor can engage in misconduct, and if you are a beneficiary of an estate, it’s important to be aware of these potential problems. If you have any concerns about the way an executor is handling an estate, you should seek legal advice as soon as possible.

What is Executor Misconduct?

Executor misconduct refers to any inappropriate or illegal action taken by the executor of an estate. As discussed above, this can include anything from self-dealing (using estate assets for personal gain) to outright theft. Executor misconduct can have serious consequences for the individuals involved, as well as for the beneficiaries of the estate.

Can Heirs Sue an Executor?

Yes, heirs can sue an executor if they commit misconduct or otherwise violate their fiduciary duties. For instance, if the executor engages in fraud and steals from the estate, the heirs can initiate a lawsuit against the executor in an attempt to recover damages to compensate them for the theft.

Additionally, under California Probate Code §8500, the heirs of the estate (or any other interested party) can petition the probate court for the removal of the executor from office.

According to California Probate Code §8502, an executor can be removed from office for any of the following reasons:

  • The executor has wasted, embezzled, mismanaged, or committed fraud on the estate, or is about to do so.
  • The executor is incapable of properly executing the duties of the office or is otherwise not qualified for appointment.
  • The executor has wrongfully neglected the estate or has long neglected to perform any act as executor.
  • Removal is otherwise necessary for the protection of the estate or interested persons.

How Can Heirs and Beneficiaries Get Their Rightful Assets Back?

If an executor in California commits misconduct while handling the estate of a deceased person, the heirs and beneficiaries may be able to get their rightful assets back by filing a lawsuit against the executor.

California Probate Code §9601 states that if an executor breaches a fiduciary duty, they can be held liable for:

  • Any loss or depreciation in value of the decedent’s estate resulting from the breach of duty, with interest.
  • Any profit made by the personal representative through the breach of duty, with interest.
  • Any profit that would have accrued to the decedent’s estate if the loss of profit resulted from the breach of duty.

In some cases, there may be additional legal claims that can be pursued against the executor, and the court might even order the executor to pay punitive, double, or treble damages as additional compensation to the aggrieved heirs and beneficiaries.

No matter what the circ*mstances, it’s vital that you discuss your situation with an experienced probate litigation lawyer as soon as possible if you believe that the executor of an estate has committed misconduct. An attorney can investigate the allegations and take appropriate legal action to recover any assets that have been misappropriated and/or remove the executor from their position and have someone else appointed in their place.

Have questions? We’re happy to discuss.
Call(424) 320-9444or email[emailprotected]

Read More
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The Guide to Family Trust Embezzlement and Stealing
The California Guide to Removing an Executor of Estate
The Penalty for Stealing from an Estate

About RMO, LLP

RMO LLP provides personal and efficient inheritance dispute services to individual and institutional clients. The firm’s attorneys focus on probate litigation involving contested trust, estate, probate, and conservatorship matters. Serving California and Texas, with offices in Los Angeles, Pasadena, Orange County, San Diego, Fresno, the Bay Area, Dallas, and Houston. For more information, please visitRMO Lawyers.

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About the Author

What Are Examples of Executor Misconduct? (1)

Scott Rahn, Founding Partner​

Scott Rahn resolves contests, disputes and litigation related to trusts, estates and conservatorships, creating a welcome peace of mind for clients. He represents heirs, beneficiaries, trustees and executors. He utilizes his experience to develop and implement strategies that swiftly and efficiently address the financial issues, fiduciary duties and emotional complexities underlying trust contests, estates conflicts and probate litigation.

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What Are Examples of Executor Misconduct? (2024)

FAQs

How is an executor held accountable? ›

In California, being nominated as the executor of a will means you have been appointed a fiduciary duty to stick to the will's terms in compliance with California law. With this duty, you may be held liable if you fail to perform it as required — this duty could last decades.

What makes a bad executor? ›

Unfortunately, sometimes executors engage in misconduct, which can create problems for the beneficiaries. Some examples of executor misconduct include: Participating in theft, misappropriation, or embezzlement. Harming the interests of the estate and its beneficiaries.

How do you resolve conflicts between executors? ›

Executors who are in dispute can apply to the Court for directions regarding how the administration should proceed. The Court have a power to revoke a grant in favour of one executor and to issue a grant in favour of another.

What mistakes does an executor make? ›

Top 10 executor mistakes to avoid (& how to avoid them)
  • Missing deadlines.
  • Failing to give proper notice.
  • Not securing estate assets promptly.
  • Not taking thorough inventory.
  • Distributing assets without court authority.
  • Forgetting to keep detailed records.
  • Forgetting to retrieve mail.
  • Not communicating with beneficiaries.

What is an executor personally liable for? ›

Personal Obligations of the Executor

If you cosigned for a loan or held a credit card jointly with the decedent, you may be personally liable for that debt. Or you may be liable for a debt if your careless handling of the estate's assets caused them to lose value.

What if an executor is biased? ›

If it is discovered that the executor is biased, your attorney can assist you in pursuing an action against him or her. Your attorney can also help with trying to have the executor removed and a new, impartial executor appointed in his or her place.

What not to do as an executor? ›

As an executor, you cannot:
  • Do anything to carry out the will before the testator passes away. ...
  • Sign an unsigned will on behalf of the deceased. ...
  • Take action to manage the estate prior to being appointed as executor. ...
  • Sell assets for less than fair market value without agreement of the beneficiaries.

How to deal with a difficult executor? ›

When an executor is so uncooperative that it is impeding administration or harming the estate, beneficiaries can utilize harsher remedies, such as removal and surcharges, to protect their interests in the estate and enforce their rights.

How powerful is an executor of a will? ›

An executor has the authority from the probate court to manage the affairs of the estate. Executors can use the money in the estate in whatever way they determine best for the estate and for fulfilling the decedent's wishes.

How do you step down as an executor? ›

Firstly, it is possible to renounce your role as Executor. This is done with a Deed of Renunciation, which must be drawn up by a lawyer. If you want to renounce your role, you should do it early on – ideally, before applying for the Grant of Probate.

How do you resolve an inheritance conflict? ›

Resolving Inheritance Disputes: Strategies for Beneficiaries and Executors
  1. Open Communication and Mediation. ...
  2. Understand the Estate Plan and Legal Obligations. ...
  3. Seek Professional Guidance. ...
  4. Consider Alternative Dispute Resolution Methods. ...
  5. Focus on the Best Interest of the Estate. ...
  6. Explore Settlement Options.
Jun 26, 2023

How inheritance conflicts can be managed? ›

One of the simplest yet most effective ways to prevent inheritance disputes is through clear, open communication among all family members involved. Discussing the contents of the will or trust, along with the reasoning behind asset distribution, can help mitigate misunderstandings and hurt feelings.

Can an executor withhold money from a beneficiary? ›

According to the law, the executor has no right to withhold payment or change the will. Doing so will breach their fiduciary rights, leaving beneficiaries vulnerable to expenses, debts, and taxes.

What is the disadvantage of an executor? ›

Administering an estate or trust can be a lengthy and complex process, often taking months or even years to complete. This responsibility may require a significant time commitment, which can be particularly challenging if you have a full-time job or other personal obligations.

How do you say no to being an executor? ›

If you don't want to act as the Executor, you can give up your rights to be the Executor. This is referred to as 'renouncing' your appointment as Executor. If you have not intermeddled with the Estate you can give up your rights under the Will to apply for Probate by renouncing your appointment.

How much power does an executor have? ›

An executor has the authority from the probate court to manage the affairs of the estate. Executors can use the money in the estate in whatever way they determine best for the estate and for fulfilling the decedent's wishes.

Are executors personally liable for debts? ›

Executors inherit the liabilities of a deceased person's estate. However, executors are not liable for debts which exceed the estate's total value.

What is the risk of being an executor? ›

Being an executor can come with certain risks and challenges, such as: Personal Liability: Executors may be held personally liable for mistakes or mismanagement of estate assets. Complex Legal Procedures: Navigating probate court and legal requirements can be overwhelming without proper guidance.

Do executor fees get reported to the IRS? ›

If you received limited-time payments for performing services as an executor, the income is taxable but you can report it as income not received in the course of a business so that it is not subject to self-employment tax in addition to income tax.

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