Serving as the personal representative of an estate can be a thankless job. While they do receive a small amount of compensation for their services, the personal representative might dedicate many hours of their time to estate administration. They have to accept personal stress and overcome conflict with beneficiaries.
Estate administration can largely consume the personal representative’s time and attention for many months. Most people recognize the importance of this position and are proactive about fulfilling their obligations. Unfortunately, some personal representatives prove to be incompetent or unethical.
Their conduct could significantly diminish the overall value of the estate. In such circumstances, beneficiaries of the estate may have grounds to take legal action. If a personal representative breaches their fiduciary duty, it is possible to remove them from their position and even hold them accountable for the damage they caused.
What duty does a personal representative have?
A personal representative typically needs to follow the instructions included in an estate plan or the provisions included in intestate succession laws. They have a fiduciary duty to the beneficiaries of the estate.
They should put the best interests of the beneficiaries above their personal interests when making decisions about estate administration. The failure to do so can constitute a breach of fiduciary duty, which could be the basis for probate litigation.
A breach of fiduciary duty could be accidental. A personal representative overwhelmed by their responsibilities could make decisions that diminish the value of the estate because they rushed through the process or lacked critical information. For example, they might liquidate key estate resources and accept less than the fair market value for those assets.
Other times, a breach of fiduciary duty could be intentional. Some people use their control over an estate for personal enrichment. They embezzle assets, undervalue them when selling them to themselves or engage in self-dealing. Any of those acts could constitute a breach of fiduciary duty and leave a personal representative vulnerable to removal efforts.
How does litigation help?
Beneficiaries frustrated by the incompetence or misconduct of a personal representative can ask the courts to replace them. A different personal representative may better manage estate resources or comply with the instructions provided by the decedent. In particularly egregious cases involving embezzlement or self-dealing, the courts can potentially hold personal representatives accountable for the negative financial impact their misconduct has had on the estate.
Initiating probate litigation can help family members protect their inheritance rights. Beneficiaries and heirs may need to take legal action if they believe that a personal representative cannot fulfill their responsibilities or has intentionally breached their fiduciary duty to an estate.