When a person passes away, we trust that their will and estate will be managed according to their wishes. Executors, who are appointed to carry out these responsibilities, are required to act in the best interest of the estate and its beneficiaries. However, breaches of fiduciary duty can and do occur, leaving beneficiaries at a loss and uncertain of their rights.

What Is a Breach of Fiduciary Duty?

A fiduciary duty is the legal obligation of an executor to act in good faith and prioritize the estate’s interests above their own. A breach occurs when the executor fails to fulfill these responsibilities. Examples of breaches include:

  • Misappropriating or mismanaging estate funds.
  • Selling assets below market value to benefit themselves or others.
  • Mixing estate funds with personal finances.
  • Ignoring deadlines for tax filings or court submissions.
  • Charging excessive fees for their role as executor.
  • Failing to provide transparency or respond to beneficiary requests.

These actions can harm beneficiaries, delay the probate process, or reduce the estate’s value, making legal intervention necessary.

Remedies for Breach of Fiduciary Duty

When an executor breaches their fiduciary duty, beneficiaries can take legal action. Courts offer several remedies, including:

  1. Removal of the Executor: If the executor’s actions are harmful or negligent, beneficiaries can petition the court to remove them. This step helps ensure the estate is managed properly moving forward.
  2. Restitution: Beneficiaries can seek financial compensation for losses caused by the breach. This includes recovering misused funds or assets undervalued in sales.
  3. Punitive Damages: In cases of willful misconduct or gross negligence, courts may order the executor to pay punitive damages as a penalty for their actions.
  4. Court Reversal: If improper decisions were made, such as selling assets at unfair prices, courts can void or reverse these actions to restore fairness.

Protecting the Interests of Beneficiaries

Executors hold a position of trust, but breaches of fiduciary duty can put an estate and its heirs at risk. When this happens, legal remedies provide a way to correct the harm and ensure the estate is properly administered. If you suspect an executor has breached their duties, contact The Williams Litigation Group today to learn how we can assist you.