An executor of the estate is legally responsible for managing a decedent’s estate. The role of executor comes with a fiduciary duty to always act in the best interests of the estate’s beneficiaries. This means that an executor must always be honest and responsible when managing estate assets.
If an executor fails to meet their fiduciary duty, then they may be in breach. Here are a few examples of how an executor may breach their fiduciary duty:
1. Failing to communicate with beneficiaries
Executors are responsible for keeping beneficiaries reasonably informed about the management of an estate. Some of the ways an executor can communicate with beneficiaries include:
- Notifying beneficiaries that probate has been opened
- Answering questions about assets or the probate timeline
- Providing detailed information about accounting or financial information
- Acquiring copies of the will or estate documents
If an executor poorly communicates or ignores communication with beneficiaries, beneficiaries may believe that the executor is concealing important information.
2. Misusing estate funds
Executors must keep their personal interests with the estate separate from their responsibilities. In other words, the executor must use estate funds for estate purposes. Using estate funds for personal expenses, favoring a beneficiary over another or selling estate property for less than its value could be considered a breach of fiduciary duty.
3. Failing to pay debts and taxes
One of the main responsibilities of an executor is to resolve any debts or taxes. This step often happens before assets are distributed to beneficiaries. An executor may be in breach of their duties if they ignore creditor claims, miss deadlines for tax payments or distribute assets before debts are paid.
An executor who is in breach of their fiduciary duty may be held responsible for any losses caused by their misconduct. Professional legal guidance can help resolve probate issues.
