How To Deal With An Estate Executor You Don'T Trust
The executor of a person's estate has access to all the decedent's assets, which is why it's critical the individual who steps into this role is trustworthy. Unfortunately, sometimes decedents will have appointed someone who doesn't seem to be doing what is in the best interest of the estate, beneficiaries, and heirs. Here are a few things you can do to ensure the executor behaves ethically and the action you can take when he or she doesn't.
Request an Accounting
Possibly the most powerful thing you can do is compel an accounting of all the assets and liabilities that has come under the executor's purview since your loved one died. During this accounting, the executor will be required to provide you a list all of the property and accounts they have control over as well as their value. This can help you determine whether the executor is handling the decedent's assets in an ethical manner or has been stealing from the estate.
While you can request this accounting informally, it's best to file a petition with the court. That's because the executor will be obligated to comply with the court order or face legal consequences if he or she fails to do so. Going through the court will also make it easier to remove the executor if you discover the person was mismanaging the estate.
If you'd rather not get the courts involved just yet, you can hire an attorney to perform an independent accounting of the estate. Though this still requires the executor to voluntarily provide the required information, it'll be easier for a lawyer to use legal means to compel the executor to act if and when it comes necessary to do so.
Demand an Executor Bond
Another thing you can do is demand the executor obtain a bond, which is basically insurance. If the executor steals from the estate or mismanages the assets and causes loss to the heirs and beneficiaries as a result, the bond guarantor will pay the victims the value of the damage.
One of the nice things about executor bonds is the estate administrator must submit his or herself to a credit and/or background check to obtain one. It may be possible to have an executor removed from the position if the person is unable to qualify for the bond due to something unsavory on his or her record, though it will depend on what the problem is. The courts are more likely to remove someone who was previously convicted of theft or fraud than if the person simply had bad credit.
Many states require executors to obtain bonds, something you can use to justify your request. Be aware, though, that people can waive the bond requirement by placing a note in their wills. Therefore, you'll need to check the will first to see if this is the case before you ask the executor to get one.
Additionally, bonds can be expensive (you'll pay 0.5 percent or more of the bond in premiums), particularly with high-value estates because they must be large enough to cover the estate's entire value (e.g. $100,000 bond for a $100,000 estate). Unless the will has set aside money to purchase an executor bond, you may have a hard time getting the administrator to buy one if it's not required by law and they must purchase it with their own cash.
Sue for Damages
If you have clear evidence the executor stole from the estate or mismanaged the assets, you can sue the person for damages in addition to getting him or her removed as the administrator. The executor will be required to repay the money he or she took from you if you win your case, and you may be able to take possession of the person's assets if the individual doesn't have the money or refuses to obey the court decision.
Lawsuits cost money to litigate, so it's essential you make sure the court award you receive will cover your legal expenses; otherwise, it may be better to simply remove the executor and cut your losses.
For more tips on dealing with problematic executors or help moving your loved one's estate through probate, contact an attorney.