An executor is responsible for settling a person’s estate after they pass away. How would someone know that an executor of an estate will follow the deceased’s last wishes? Every executor is bound by a fiduciary duty, meaning they must act in the best interests of the estate and its beneficiaries — never their own.
Unfortunately, some executors play “loose and free” with that fiduciary duty, and that can cause problems. There are a few ways executors may breach their fiduciary duty. Some common issues include:
Ignoring the terms of the will
The executor is responsible for carrying out the last wishes of the deceased outlined in the will. If the executor fails to follow the terms of the will, they may be in breach their fiduciary duty — even if they feel like they have good reason for it.
Using estate funds for their own gain
One of the most common examples of an executor breaching their fiduciary duty is by using an estate for self-gain. The executor may misappropriate estate funds to line their own pockets, for example, or sell themselves property at below-market prices, cheating the estate of valuable profits.
Neglecting to manage or secure property
The deceased may have had several properties in their name. The executor is typically responsible for acquiring these properties and managing them until they are properly distributed. Failing to acquire and maintain the properties could be seen as neglect by the executor.
Failing to execute the estate promptly
The executor is typically expected to settle an estate in a reasonable amount of time. If the executor neglects their duties for too long, it may cause financial and emotional difficulties for family members and beneficiaries.
If an executor breached their fiduciary duty, they may face legal actions from beneficiaries of the estate. Legal guidance may be required to resolve issues during the estate administration process.
