During estate administration, a personal representative, also known as an executor, oversees much of the process. They are responsible for managing estate resources and making distributions to beneficiaries or heirs. They may also need to liquidate assets to repay creditors, cover tax obligations or distribute proceeds from sales among beneficiaries.
The obligations of the deceased individual and the instructions that they provided in their estate planning paperwork largely govern the actions of the personal representative. The personal representative must also uphold their fiduciary duty. They should act in the best interests of beneficiaries or heirs. If they undervalue critical resources, their errors could lead to people inheriting less than they deserve.
Liquidating assets requires preparation
Personal representatives selling resources in accordance with the testator’s instructions or to fulfill the estate’s financial obligations should not simply accept the first offer they receive. Especially when handling high-value resources, including real property, they need to validate the fair market value of those assets before attempting to sell them.
In some cases, they may need to consult with a professional to determine what resources are worth. If they improperly value resources and sell them for far too little, beneficiaries may need to take action.
How can the courts help?
Parties concerned about the conduct of a personal representative can ask the courts to intervene. There are two ways that probate litigation can help address inappropriate transactions that diminish what beneficiaries inherit.
In some cases, beneficiaries aware that the personal representative has significantly undervalued resources could ask the courts to intervene and prevent the transaction. An injunction could prevent the personal representative from liquidating resources in a manner that benefits them or disadvantages the beneficiaries of the estate.
In scenarios where the personal representative has already conducted the transactions and diminished what beneficiaries receive, it could be possible to hold them responsible for the impact of their choices.
Particularly in cases where there is reason to believe that the personal representative received a kickback or otherwise financially benefited from transactions, the courts may hold them financially accountable for the harm their actions have caused the estate and its beneficiaries.
Those concerned about preserving their inheritances may need to discuss their worries with a probate attorney. Appropriate legal support can make a major difference for those concerned about incompetent or unethical conduct during estate administration.