A fiduciary duty means of a duty of good faith and fair dealing to the beneficiaries and interested third parties of the Estate. An executor, administrator and trustee must always consider the best interests of the trust or estate before his or her interests. He or she must probate the Will, create an inventory of everything owned by the decedent, manage the estate, take care of tax matters, pay debts and distribute estate assets to beneficiaries.
In larger estates this role can take years to complete. During this time legal and tax issues may develop and disputes result. When an executor or trustee profits from or abuses his or her position, fails to communicate and disclose information to beneficiaries he or she may have breached their fiduciary duty to both the estate and its beneficiaries.
A failure to safeguard estate assets that causes a loss to the heirs and beneficiaries may also be a breach of fiduciary duty.
The heirs and beneficiaries damaged as a result of this breach can file a lawsuit against the executor or trustee. Under some circumstances, the executor or trustee can be held personally liable for the loss.
While New Jersey is a probate friendly state and executors are not required to obtain court approval for most actions, if the estate representative is not complying with state law, the only recourse a beneficiary, creditor or other party in interest has is to file a complaint and order to show cause for relief with the Superior Court.
Executors and administrators have a duty to keep all estate assets separate and identifiable, and to account to the beneficiaries for all monies coming into and going out of their possession. If you are the beneficiary of a will and feel that the executor is not administering the will properly, you can sue the executor to obtain the property that is due to you. Family members can also ask the court to remove the executor if he or she is failing to uphold the duties of the role.
What would constitute a failure of duties? The simplest example would be if your uncle left you his classic car, but your cousin, the executor, refuses to give you the car because she believes it should be hers. You have a right to sue for the vehicle. Disputes, however, are not always as clear as this example.
During probate, the court appoints a responsible person, known as the administrator or executor of the estate , to help facilitate the administration process. Probate can not only delay distributions to estate beneficiaries but it can get costly, which is why many people seek out ways to avoid it.
Because the probate process is also expensive and burdensome for the courts, the California Legislature has created mechanisms by which probate can be expedited or avoided entirely. A beneficiary representation lawyer can help estate beneficiaries seeking to avoid probate determine whether doing so is possible, and if it is, help with looking for other viable options. As an estate beneficiary, you are guaranteed certain rights. The last thing you want to do is sit idly by while administration takes place.
Instead, be proactive by learning your beneficiary rights and enforcing them at every stage of the administration process. If an executor of the estate has informed you that you have been named as an estate beneficiary, you are probably wondering: As a beneficiary of a will, what are my rights?
Do I have a right to see a copy of the will? Do I have a right to information about the estate from the executor? Do I have a right to remove the executor if they are acting inappropriately? The answer to all of these questions is yes. Estate beneficiaries have important rights to not only protect against inheritance theft but also to ensure that the worth of the estate is not compromised before the executor or administrator is permitted to distribute assets.
It is important for estate beneficiaries to familiarize themselves with their beneficiary rights at every stage of administration so that if anyone — e. Estate beneficiaries should remember that executors and administrators are fiduciaries. For instance, executors and administrators are subject to a duty of impartiality, which means that they cannot favor certain beneficiaries over others. Executors and administrators are likewise subject to an absolute duty of loyalty; their personal interests should never be placed above those of the estate or estate beneficiaries.
This duty can include regularly communicating with estate beneficiaries and supplying them with periodic estate accountings. If executors or administrators are not diligent in carrying out the aforementioned duties, estate beneficiaries should reach out to an estate lawyer , who can utilize the courts to compel the executor or administrator to provide beneficiaries information about administration, as well as accountings; if the problem is beyond fixing, the lawyer can request for the court to have the executor or administrator removed and potentially surcharged.
Even though estate beneficiaries have broad rights, it is important for them to remember that executors and administrators are not necessarily required to involve beneficiaries in every decision they make. If estate beneficiaries want to have a say in estate-related decisions, it is essential for them to play an active role in administration and stay apprised of what is happening at every step of the process. An estate beneficiary has a right to sue the executor or administrator if they are not competently doing their job, breaching their fiduciary duties or causing financial harm to the estate.
If an estate beneficiary suspects the executor or administrator to have breached their fiduciary duties — regardless of whether they did it intentionally or inadvertently — there are steps they can take to protect both their beneficiary rights and the estate.
What constitutes a breach of fiduciary duty? It can consist of anything from the executor or administrator negligently managing estate assets, to intentionally misappropriating estate property, to failing to provide information or accountings to the beneficiaries. The remedies for estate beneficiaries will depend on the gravity of the misconduct and the extent to which the misconduct caused financial harm to the estate.
If sufficient evidence exists pointing to a breach of fiduciary duty on the part of the executor or administrator, estate beneficiaries can proceed with suing the executor of the estate. As previously mentioned, estate beneficiaries must have a valid reason for suing an executor of an estate.
If any of the aforementioned scenarios exist, estate beneficiaries should get in touch with a probate lawyer right away in order to have the executor removed and replaced, and possibly surcharged. When this happens, estate beneficiaries may have standing to bring something known as a will contest to try to invalidate the parts of the will that are problematic.
0コメント