Estate administration in California is often a lengthy process. The personal representative or executor of an estate has to attend court hearings, fulfill obligations and distribute property. Their role is a difficult one that often produces very little compensation given the amount of work it requires.
Still, most personal representatives fulfill their responsibilities in good faith. They want to carry out the last wishes of the deceased individual and offer support to their surviving loved ones. Others might potentially abuse the authority that comes from their position.
A personal representative technically has a fiduciary duty to the estate and its beneficiaries. They should put the best interests of beneficiaries ahead of their own wishes. Family members and beneficiaries who suspect that a personal representative has breached their fiduciary duty may need to take legal action.
There are many opportunities for misconduct during probate
With unrestricted access to estate resources comes intense temptation. Some personal representatives breach their fiduciary duty by embezzling from the estate. They keep certain assets for themselves instead of distributing them to beneficiaries or liquidating them according to the instructions of the decedent.
Other times, they may use their position for personal enrichment. They may hire their own small business or a family member to provide services for the estate at inappropriately high prices. Those choices can diminish the estate’s resources.
A breach of fiduciary duty can also occur when a personal representative puts their wishes ahead of state law or estate planning documents. Perhaps they have a strained relationship with one of the beneficiaries. They may try to unfairly reduce that person’s inheritance.
Other times, they might give more favorable treatment to someone with whom they have a positive relationship. Any actions that put their own interests or wishes ahead of what is best for the estate and its beneficiaries may constitute a breach of their fiduciary duty.
How do families respond to such breaches?
A breach of fiduciary duty is a clear indication that a personal representative does not properly respect the position they hold. Family members, beneficiaries and heirs can initiate litigation in the California probate courts over a perceived breach of fiduciary duty.
They can ask the courts to remove the personal representative and replace them with someone else. They can seek an injunction preventing certain transactions from occurring. In some cases, they can even request financial compensation from a fiduciary who has sought to enrich themselves at the expense of the estate.
Pursuing probate litigation can potentially help families to preserve the legacy of a loved one and prevent the reduction of an estate’s value because of a breach of fiduciary duty. Those who cannot fulfill their fiduciary duty may not be fit to serve as personal representatives during estate administration.