When you are a beneficiary of an estate, you place trust in the executor, who is one type of ‘personal representative’. This person has a legal “fiduciary duty” to manage the estate’s assets honestly and in your best interest.
If you suspect an executor is failing this duty through secrecy or mismanagement, it may be fiduciary malfeasance. You have legal options to challenge this behavior.
Understanding fiduciary malfeasance
A breach of fiduciary duty can range from intentional acts like stealing (malfeasance) to negligent mismanagement (misfeasance). This involves failing to properly maintain estate property or making imprudent investments.
This is a serious breach of their legal and ethical obligations. Their job is to protect the estate’s value, pay legitimate debts and distribute assets according to the will or state law, not to profit themselves.
Common red flags of executor misconduct
While many executors act in good faith, certain behaviors can be warning signs. Beneficiaries should be alert to actions that seem secretive or self-serving.
- Failing to provide regular updates or accountings
- Selling estate property for significantly less than market value
- Co-mingling estate funds with their personal bank accounts
- Making questionable payments to themselves or third parties
These actions can signal that the executor is not acting properly.
What are your legal options?
If you have evidence of fiduciary malfeasance, beneficiaries in Georgia have the right to petition the probate court. You can request a formal accounting, where the executor must show detailed records of every transaction.
You can also ask the court to stop the executor from taking certain actions. In serious cases, a judge can remove the executor and appoint a new representative to finish administering the estate.
Protecting your inheritance
An executor who breaches their duty may be held personally liable for any financial damages. This is a primary reason why time is a critical factor in these disputes. Once estate assets are improperly spent or hidden, they can be very difficult or impossible to recover.
While beneficiaries have rights, the legal process to enforce them and demand a full accounting is complex. Seeking legal guidance can help you understand the specific options available to protect your inheritance.