Executors, also known as personal representatives, oversee estate administration. Most of the time, personal representatives fulfill their duties without much controversy or conflict.Other times, interested parties might attempt to remove the personal representative or initiate direct legal action against them.
What situations might lead to legal disputes regarding how a personal representative administers an estate?
When they fail to act or make mistakes
Interested parties can seek to replace a personal representative if they have failed to fulfill their duties in a competent fashion. Both inaction and incompetent conduct can be grounds for heirs or beneficiaries to ask the courts to replace a personal representative. Other interested parties, including creditors, could also raise questions about asset management and the conduct of a personal representative to protect their interests.
When they reach their duties
Personal representatives generally have a fiduciary duty to the heirs or beneficiaries of an estate. They should not use their position for personal gain, as the estate compensates them for their work. Both embezzlement and self-dealing can provide grounds for concerned parties to remove a personal representative because they have breached their fiduciary duty.
Litigation is sometimes also possible in cases where there are concerns about incompetent asset management diminishing the value of the estate. A personal representative’s changing circumstances, such as divorce or a decline in health, could undermine their ability to fulfill their duties effectively and warrant their removal.
Personal representatives may need assistance throughout estate administration to ensure they comply with the law and fulfill all of their obligations. An attorney’s guidance can limit risks of legal controversy related to a personal representative’s conduct.