Sometimes, the family members of a person who has recently died file lawsuits in probate court. They may do so because they question the validity of documents. In cases where people have credible suspicions of fraud, undue influence or a lack of capacity on the part of the testator, they may contest a will with the goal of upholding the individual’s true legacy wishes.
Other times, beneficiaries included in an estate plan feel compelled to take legal action for different reasons. Even though they recognize that the estate plan is valid, concerns about estate administration force them to take the matter to probate court.
Why do some of the beneficiaries of some estates risk losing some of their inheritance to cover probate litigation costs during estate administration?
Concerns about the representative’s actions
What beneficiaries actually inherit from an estate depends in no small part on the conduct of the personal representative. A personal representative has numerous obligations. They have to locate and secure assets that belong to the estate. They have to properly manage those assets so that they don’t lose any of their value. They have to communicate with creditors and provide information to the probate courts. They should then distribute estate resources according to the estate plan.
The personal representative of an estate has a fiduciary duty to its beneficiaries. They should put their best interests above all other considerations during estate administration. If they have misappropriated resources or refused to follow the instructions provided by the testator, then beneficiaries might take legal action to either force their compliance with the estate plan or replace them.
In some cases, their negative impact on the estate might not be intentional but rather a result of their own inability or incompetence. Those experiencing medical emergencies and those who cannot make appropriate financial decisions about the management of estate resources may end up removed from their roles as estate representatives to preserve what remains of the estate for the beneficiaries.
In cases where a person representative has failed to take necessary steps or has proven incompetent in their management of estate resources, beneficiaries may have grounds to ask the courts to replace them with someone else. Realizing that misconduct, incompetence and failure to act are all grounds for probate litigation can help beneficiaries protect their inheritance. Those who take legal action can work to preserve the legacy that another person likely crafted with great care.