If you are not conversant with estate planning, you probably would have heard the term “executor” and not know what it means or what they even do. The term “executor” in estate planning is self-explanatory; it doesn’t have another meaning other than the one you see in the dictionary. Simply put, an executor is appointed either by a property owner or by a court of law to manage the affairs of a deceased person’s estate. However, while most executors act in good faith to fulfill their duties, there are cases where they engage in misconduct, which can cause serious problems for the estate’s beneficiaries.
Therefore, in this blog post, we will dive into the topic of executor misconduct, discussing what it is, how it’s viewed legally, and provide examples of this unfortunate occurrence. So, without further ado, buckle up and get ready to learn about the potential pitfalls of estate management.
An Overview of The Term Executor?
Although we have briefly discussed who an executor is in the introduction. In this section, however, we will take it to another level and discuss who an executor is, how an executor works, who is best to be an executor of a will, how to choose an executor for your will, and the relationship between an executor and estate planning.
· Who is an Executor?
An executor can be seen as an individual or organization mentioned in a deceased person’s last will, tasked with fulfilling the deceased’s desires and settling their affairs after they pass on. Executors can also be called “personal representatives” or “administrators” of an estate.
Usually, when someone passes away, various financial and legal matters will need to be sorted out. This includes filing a death certificate, settling funeral expenses and outstanding debts, distributing assets to beneficiaries, and completing other necessary tasks before closing the estate. This is where an executor comes in. An executor, if named in the deceased last will, will assume legal responsibility for carrying out many of these responsibilities. However, if, for whatever reason, a deceased person did not leave a will or the will does not identify an executor, the court will then designate someone to handle the deceased’s affairs.
· Who is Best to be an Executor of a Will?
If you are in the process of planning your estate and you are wondering who could be your executor, then this section is one for you. The simple answer to this question is that anyone can be named as an estate executor if the individual is above 18. However, before an executor can begin their duties, the will must be approved in a probate court. Probate is a legal document issued in a probate court that gives an executor the right to sort out the affairs of a deceased person.
· How to Choose an Executor for Your Will
Selecting an executor for a will is easy if you follow the right process. As we said earlier, anyone can be named an executor of a will. It could be one’s spouse or civil partner. You can even your surviving children as the executor of a will.
However, before you select an executor, you should inform them individually first before you do. Doing this is important to find out in person if they can perform the task. And if they say then, the next thing would be to add them to your will as your estate executor. After adding them to the will, the next step would be to get the will approved in a probate court.
Another important thing to consider before choosing an executor is their age. Ideally, you would want to name someone still alive when you pass away.
· The Relationship Between an Executor And Estate Planning
Executors play an important role in estate planning for individuals, their families, and beneficiaries. The term “estate planning” encompasses various activities, including preserving, managing, and distributing an individual’s assets after they pass on. For most of these activities, an executor plays a critical role in their execution. For example, they are usually tasked with managing and distributing the deceased’s assets as stated in their last will.
Executor Misconduct
Executor misconduct can be referred to as a situation whereby someone tasked with executing the estate of a deceased fails to carry out their duties in good faith. This misconduct can come in various forms. It could come in the form of asset mismanagement, fund embezzling, and making unauthorized distributions. When an executor is involved in any of these, it doesn’t always end well for the executor and the beneficiaries of the asset. For example, this behavior can open up legal disputes that can delay the distribution of assets to the beneficiaries. It is, however, important to note that executor misconduct is viewed seriously under the law, and legal action can be taken against executors who engage in such behavior.
What Are Examples of Executor Misconduct?
It doesn’t matter whom you name as your executor or how well you trust them; the simple truth is that anyone can fail in their duty to administer your estates or those of our loved ones. You will even be shocked to realize that not every executor, irrespective of how close they are to you, have your best interest or that of your heirs at heart. To answer the question of “how we know this,” we shall briefly discuss some of the more common types of executor misconduct we have observed in our practice.
- Misappropriation of Funds: This is arguably the most common executor misconduct. This is a situation whereby an executor tries to steal assets or take funds out from an estate he or she was meant to give to the beneficiaries. It is worth noting that executors are meant to be neutral, they do not own the estate, and neither are they a beneficiary – they only get compensated for acting as an executor.
- Withholding Inheritance: As we have said several times already, the role of an executor is to act in line with the directives of the deceased. He or she must always be neutral throughout the whole process, and when the time is right to distribute the assets to the beneficiaries, he or she must do so per the will’s stipulation.
- Mismanagement of Real Estate and Other Assets: Another problem with executors is that they often mismanage the deceased properties, including the funds they left behind. When such situations arise, it could lead to a series of court cases.
- Failure to Pay Creditors and Taxes: An executor does far more than distribute assets to beneficiaries. They are also tasked with paying outstanding debts and taxes on the deceased properties. Failure to do any of these can constitute misconduct if the case reaches the court.
Conclusion
Executor misconduct is serious and difficult to identify or prove; however, acting promptly is important if you suspect the executor of mishandling estate funds or property. Seeking legal advice and representation in these situations may be the best way to protect your rights as a beneficiary.
If you believe an executor has acted in bad faith and think they have engaged in misconduct, contact our experienced team at Saanichton Law Group for help. Our team of lawyers specializes in probate matters and has extensive experience dealing with cases involving executors who haven’t acted with integrity. Our team at Saanichton Law Group can also assist with reviewing your assets, financially providing for beneficiaries in the event of death, and selecting an executor of your estate. Contact us at 2505440727 today.
