In this article, we’ll explore different examples of executor misconduct. In particular, we’ll look at executor misconduct in the context of banking.
Importantly, if you believe you’re the victim of executor misconduct, you should speak with a qualified legal professional to guide you through any available options.
On the other hand, if you’re simply conducting research to better prepare yourself for the future, you might find our article on the most exclusive private banks useful as well.
Private banks offer a wide range of services that include estate planning, investment advisory, and even how to manage relationships with executors. Use the article above to learn more.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Examples of Executor Misconduct
- Executor Misconduct With Estate Administration
- Frequently Asked Questions
- Ready to Explore Your Options?
Examples of Executor Misconduct
Examples of executor misconduct include the following ten items. However, there are many other considerations that the benefactor of the estate, the beneficiaries, and the executor should be aware of, which we’ll discuss below.
- Failing to collect the assets of the estate
- Failing to correctly manage the property of the estate
- Allowing estate assets to fall into disrepair
- Losing assets or funds that belong to the estate
- Refusing to distribute the assets or funds of the estate
- Failing to correctly pay estate obligations like taxes
- Paying themselves an unjustified salary
- Using estate accounts for their personal purposes
- Using estate funds to pay their personal obligations
- Taking action without proper authorization
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Executor Misconduct With Estate Administration
Executor misconduct may refer to any of the items listed above. However, the three overarching themes of executor misconduct include (1) a failure to carry out the duties of the role, (2) abuse of their authority, and (3) theft.
Depending on the specific category that an executor’s misconduct falls into, beneficiaries may choose different paths to remedy the situation. In almost all cases, beneficiaries should consult legal counsel before taking any action, which will ensure that their interests and the interests of the estate are protected.
Below we’ll take a closer look at one way to protect an estate from executor misconduct, which involves opening a bank account for the estate and transparently managing the estate finances.
Executors vs Estate Funds
Executors are permitted to use the funds of the estate to maintain the estate, assets of the estate, and carry out estate administration. That said, the executor may not at any time mix their personal funds with those of the estate.
With this in mind, estate bank accounts are typically opened in order to manage the administrative costs of the estate, receive proceeds from the sale of estate assets, and in order to keep a clear and transparent record of all financial transactions tied to the estate.
Additionally, in many jurisdictions, an executor is not able to use the funds of the estate to defend themselves personally. Instead, the estate funds may only be used to defend themselves in their capacity as an executor.
Frequently Asked Questions
Below are three of the most common questions that we receive from people looking into examples of executor misconduct. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
What to Do if Executor Is Ignoring You?
If an executor is ignoring you as a beneficiary, you have several options that you can consider to try and remedy the situation. That said, both options typically require you to engage a qualified legal professional. The first option is to file a petition with the court to have the executor removed from their position. The second option is to file a civil lawsuit.
How Do I Make Sure an Executor Is Honest?
The best way to make sure an executor is honest is to receive transparent records of the accounts, the assets, and the transactions related to the managing of the estate. In many cases, executors will choose to file a formal accounting to beneficiaries in order to demonstrate that they are fulfilling their duties correctly.
What Are the Liabilities of an Executor?
The liabilities of an executor vary depending on the jurisdiction in which an estate is being managed. In certain instances, this can include being personally liable for inheritance taxes of the estate, while in other jurisdictions it can include unlimited personal liability for their duties in managing the affairs of the estate.
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