A person who’s creating an estate plan will name an executor who will oversee the estate once the creator passes away. This individual is responsible for making sure the decedent’s wishes are followed, but they must also follow the applicable laws related to the administration of the estate.
This responsibility comes with the potential for legal trouble. While most executors carry out their duties without issue, there are certain missteps that can lead to lawsuits from heirs, beneficiaries or creditors.
Breach of fiduciary duty
The executor must act in the best interests of the estate and beneficiaries, but they must also comply with orders from the probate court. If an executor misuses funds, shows favoritism or mismanages assets, they can be sued.
One example of this is if the executor sells property below market value. Another is commingling assets with their own funds. Even if these are honest mistakes, it may lead to legal claims against the executor.
Failure to follow the will or court orders
If an executor doesn’t follow the probate court’s orders or the instructions in the estate plan, legal action may occur. This includes meeting all applicable deadlines for things like sending notices, filing documents or paying taxes. It’s possible that the executor may be held personally liable if there are penalties or damages that occur because of those issues.
Legal action against an executor can be time-consuming and costly, so it’s best to work with someone who’s familiar with these matters. Taking the time to review the situation and explore the options is beneficial, but that must be done with time limits for legal action in mind.