Common Examples of Executor Misconduct and How To Address Them

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After a loved one passes, you’ll soon become acquainted with the executor of their estate. This person is in charge of administering the estate, which involves following the terms of the deceased’s will, protecting estate assets, and communicating with beneficiaries. Executors generally take the job seriously, but some are less suitable for the role.

Below, discover some common examples of executor misconduct and what to do if you think an executor is shirking their duties. And if you live in the Bluegrass State, check out our guide to Kentucky probate laws.

Executor Duties: Big Power, Big Responsibility

Virtually all estates must go through probate, and the court will assign someone to manage the estate during this process. If the deceased named someone for the job in their will, this person is called an executor. If they did not name anyone, they’re called an administrator. Regardless of the term used, the duties are the same.

Executor duties are similar in all states:

• Familiarize themselves with probate laws in their state to avoid breach of fiduciary duty
• Identify assets and debts in the estate
• Find and communicate with all beneficiaries named in the will
• Notify creditors of the deceased’s passing and pay their debts from the estate
• Distribute estate funds according to the terms in the will

As you can see, it’s a big job, and not every executor can handle the personal liability of estate administrator responsibilities.

Signs That an Executor Has Turned to the Dark Side

Is the executor of your loved one’s estate not doing their job? Here are some common examples of executor misconduct:

• Misappropriation of assets: This is a fancy way of saying that the executor is stealing from the estate, and it’s one of the biggest sins an executor can commit. Misappropriation is sadly easy because the executor has unfettered access to estate funds. If you notice the executor suddenly making lavish purchases they couldn’t otherwise afford, they might be guilty of misappropriation.
• Self-dealing: This is another way that executors can put their own interests ahead of the estate’s. One example is an executor who buys property from the estate without asking for court approval. In this case, the executor serves as both the seller and the buyer, enabling them to sell the property to themselves for a fraction of its real value.
• Failure to communicate: Executors are legally required to find and communicate with all beneficiaries named in the will. If the executor refuses to provide updates, something shady could be afoot.
• Delayed distribution: After probate is over, the executor should disburse the assets to beneficiaries in a timely manner. If the executor instead takes their sweet time, beneficiaries might wonder whether they’re up to no good.
• Inaccurate inventory: One of the executor’s roles is to take an accurate inventory of the estate’s assets. Some executors, whether out of incompetence or intentional wrongdoing, fail to inventory items as they should.
• Favoring certain beneficiaries over others: If the executor allows certain beneficiaries (such as their children) to pick assets from the estate before others, they’re committing misconduct.
• Not taking care of estate assets: Suppose someone passes away with an attic full of valuable antiques. It’s the executor’s job to safeguard these antiques until they can be disbursed to beneficiaries. Instead, the executor stashes them in an outdoor shed where they become ruined by pest damage and the weather.
• Failure to pay debts and taxes: Legally, the executor is required to pay the estate’s final taxes and debts. An executor might fail to do this, in turn racking up expensive penalties and interest.

The Executor Is a Dud; Now What?

If these examples of executor misconduct sound familiar, is there anything you can do? Yes. Should the court find the executor guilty of misconduct, it may remove and replace them with someone else. Beneficiaries can also sue executors for damages to the estate. In serious cases of theft or fraud, an executor might also face criminal charges.

Think the estate’s executor may be engaging in misconduct? Here’s what to do.

1. Send a demand letter to the executor asking them to explain themselves. For example, if the executor is dragging their feet, you might ask for a distribution timeline. If you think they’re mismanaging assets, you could ask for a complete list of the estate’s assets and expenses.
2. If the executor doesn’t respond to your satisfaction, hire a lawyer who’s familiar with probate. They’ll discuss your legal options, such as removing the executor and suing for damages. They will also help you collect evidence of misconduct.
3. File a misconduct report with the probate court that’s handling the estate. If evidence suggests that the executor is engaging in misconduct, the court might choose to remove them.
4. File a lawsuit against the executor if their misconduct caused the estate financial damages. You can sue for breach of fiduciary duty to recover assets the executor misappropriated.

The laws for suing an executor vary widely by state, so be sure to hire an attorney who is familiar with the probate laws where the deceased lived.

Need Funding To Tide You Over During Probate?

Probate law is incredibly complex, and with all the challenges executors face, it’s all too easy for them to commit misconduct, either accidentally or purposely. Thankfully, courts don’t look kindly on shady executors, so you can have them removed if their behavior matches any of the above examples of executor misconduct.

Need cash now and can’t wait for probate to settle? Apply for a probate advance from Rockpoint Probate Funding. Call (888) 263-8588 to learn more.