How personal representatives can breach their fiduciary duty

On Behalf of | Feb 2, 2025 | Estate And Trust Litigation

There are several scenarios in which the beneficiaries or heirs of an estate may have grounds to take action against a personal representative. Sometimes, incompetence or inaction can be a reason to replace a personal representative.

Other times, people may question their behavior and the intent behind their choices during estate administration. Generally speaking, personal representatives have a fiduciary duty to the beneficiaries of an estate. It is their responsibility to act in the best interests of beneficiaries rather than for their own benefit.

If a beneficiary can convince the probate courts that a personal representative put their own wishes ahead of what is best for the beneficiary, it may be possible to remove the personal representative and replace them with a better candidate for the role. What scenarios may justify a claim that a personal representative violated their fiduciary duty?

Embezzlement

For some people, having access to high-value resources can motivate inappropriate conduct. Personal representatives might try to remove small, high-value assets such as jewelry or cash from the home of the decedent.

They might misappropriate estate resources, including money from bank accounts. Provided that families can prove that a personal representative embezzled or stole from the estate, that could constitute a breach of their fiduciary duty that justifies their removal.

Self-dealing

Personal representatives often need to work with a variety of different professionals during estate administration. They need the services of accountants and various others, such as real estate agents.

Self-dealing occurs when an individual uses their position for personal gain by hiring themselves, their employer or the company that they run to provide services for the estate. Often, they do so at an unreasonable markup. Proof of self-dealing and the harm it caused an estate could lead to successful probate litigation.

Clear conflicts of interest

Estate administration may involve the management of various different assets. In some cases, the person named as representative of the estate might have a conflict of interest because of their relationships or their career. They could then harm the estate by undermining its value or mismanaging its resources because of their conflict of interests.

Concerned beneficiaries who have evidence of inappropriate conduct on the part of a personal representative may have grounds to initiate probate litigation. Removing a representative who doesn’t act in the best interests of the estate can help people preserve the assets they are entitled to inherit and protect the legacy of the deceased individual.