When someone dies, their loved ones may have to handle the decedent’s estate. The estate executor is responsible for this process, which includes validating the will, paying debts and distributing assets to the beneficiaries. They must also pay off the debts that are associated with the estate.
Throughout the probate process, beneficiaries should be kept abreast of what’s happening. If they feel that the executor is mismanaging the estate, delaying asset distribution without a valid cause or acting in a way that violates fiduciary duty, a lawsuit may be possible to remove the executor or compel the court to take action. While that’s possible, there are times when the beneficiaries don’t have the ability to file a lawsuit.
Limitations exist for beneficiary-initiated lawsuits
In most cases, the beneficiaries can’t file a lawsuit on behalf of the estate because that’s a duty that’s reserved for the executor. This concept was reinforced by the Texas Court of Appeals in Serna v. Banks. In this case, the beneficiary sued the executor of an estate for misappropriation of estate assets, but that case was dismissed. The court found that the beneficiary doesn’t have standing to bring a case on behalf of the estate unless they can show that there is no executor, that no executor is pending and that an executor isn’t necessary.
Beneficiaries in Texas have specific rights, but they must ensure they’re exercising them carefully. Filing a lawsuit during probate without legal standing can lead to the case being dismissed. If there’s anything that’s not being handled properly in the probate process or if there’s reason to believe that a contest is necessary, working with someone familiar with these matters can be beneficial.