First things first. An executor of an estate is a person or entity that the testator (the person who makes a will) appoints to administer their estate after they pass away.
The executor takes on a series of responsibilities. They must inventory the assets and debts of the person who passed away and appointed them, manage those assets, pay debts and taxes, and distribute the remaining assets to the beneficiaries, as specified in the will.
Fiduciary duties
It is essential to note that the executor must act in the best interests of the estate and its beneficiaries, ensuring compliance with local, state, and federal laws and fiduciary duties.
Most of the time, things go well in this process. However, sometimes the executor does not honor the responsibilities they took on and does something against the law or contrary to the promise of acting in the best interests of the beneficiaries and the estate.
Suing the executor of an estate
If the executor (or personal representative, as they are often called in Texas) engages in misconduct or mismanagement of the estate, they can be sued. For example:
- If the executor breaches their fiduciary duty, which they owe to the beneficiaries.
- If they fail to follow legal processes and procedures as they are supposed to.
- If they misappropriate assets, steal assets or do something with them that they should not.
- If the executor commits fraud, like falsifying documents, lying to the beneficiaries about the value of the estate, or hiding assets from the beneficiaries.
- If the executor is incompetent or neglectful in their behavior and fail to fulfill their responsibilities.
As you can see, taking on the responsibilities of an executor is serious business. If an executor does any of the above, a beneficiary can file a petition in probate court to remove the executor and hold them accountable. Of course, speak with your attorney first.
Executors are expected to act in good faith and work diligently to fulfill their responsibilities to the beneficiaries of the estate and the estate itself. There are situations where their actions, or lack thereof, justify a lawsuit.