What Happens When an Executor Fails to Properly Manage an Estate?

What Are Some Duties a Good Executory Should Be Doing?

The Executor of your Will or estate plan has a critical job: to effectively manage your wishes and follow your will or estate plan instructions in the letter. In Florida, the law requires a personal representative, known as an “executor” or “administrator,” to effectively manage all the duties to administer your estate after you die or become incapacitated.

Just some of the duties an efficient executor should do are:

• Gather all the information on your assets, liabilities, etc.
• Searching for and notifying all your creditors and detailing the validity of the estate’s debt.
• Identifying all your loved ones and beneficiaries.
• Pay any taxes due and object to all improper claims.
• Distributing all the assets to your loved ones and beneficiaries according to the directives in your Will or estate plan, and more.

The personal representative’s position is that of a fiduciary. As such, they are legally obligated to carry out their many and varied duties with the utmost care and act in the beneficiaries’ best interests.

Remember that your Executor must strictly comply with Florida law in performing these myriad duties. Any improper action or failure to act on the Executor’s part may be considered estate mismanagement and can subject them to personal liability.

Another vital point to remember is that although the Executor you appoint remains the person ultimately responsible for the administration and management of your estate, Florida law requires most personal representatives to have a qualified, skilled, and experienced lawyer to guide and assist them in their duties. Probate and managing your estate or Will are complex areas of law, and the state of Florida recognizes that they are demanding jobs.

Unsurprisingly, not everyone appointed as an Executor is sufficiently trained and capable of adequately managing a complex or even moderate estate.

Additionally, if your estate is being mismanaged, your thorough and well-versed estate planning lawyer will usually bring it to your (or your family’s) attention before it becomes a severe issue.

What Are Some Signs of Estate Mismanagement I Should Be Aware Of?

Depending on the complexity and depth of your estate, if it is mismanaged, there are usually “red flags” that will appear to make you, your family, and especially your skilled lawyer take notice. Just a few of these signs are:

• Failing to communicate – Communication is one of the primary responsibilities of a reliable and sound Executor. If loved ones and beneficiaries constantly have to seek information, something should be done.
  Your appointed Executor is bound to provide your beneficiaries with relevant information regarding the estate throughout the entire administrative process. This includes informing them of the values involved in the estate, the status of the estate’s investments, what is being spent, and what it is being spent on.
• Missing deadlines or mandatory court appearances – The job of an Executor is undoubtedly highly demanding, may take up a lot of time, and requires significant effort. However, it will require making court appearances and meeting strict filing deadlines. If this is not done and the Executor is missing crucial court appearances, this will raise concerns about mismanagement.
• Not filing a timely inventory of the estate – In Florida, your Executor has 60 days after issuing letters to file a complete inventory with the court. Missing this deadline without a proper extension from the court is a significant sign that the Executor is not correctly managing the estate.

The above are only a few “red flags” that may indicate to you, your family and your detail-oriented estate planning lawyer that your Executor is not doing the job required and your estate is being mismanaged and suffering.

What May Happen If My Executory Mismanages My Estate?

Under Florida law, mismanaging your estate can have dire legal consequences. If a loved one, heir, beneficiary, or lawyer discovers evidence that your Executor is not fulfilling their legal obligations, your family and beneficiaries have the legal right to file a petition with the probate court and obtain a detailed accounting of your estate’s assets. You could also petition the court to remove the Executor, and more dire and serious violations could result in the Executor being held in contempt of court or held liable in a civil lawsuit.

In most cases, the Executor of your estate does take their responsibilities seriously and handles the estate with the care and diligence it deserves. Leaving precise and detailed instructions and making sure your Executor knows precisely what they can and cannot do will usually get you off on sound footing and help them carry out their critical and vital task successfully; of course, if questions arise, your estate planning law team is well equipped to help.

What Are Some Options If My Executor Mismanaged My Estate?

It’s a difficult task to choose a qualified and trusted Executor. Still, you should know that if your trust is violated, your passionate, experienced, and diligent estate planning lawyer will explain that you have legal options.

For example, if the mismanagement is dire or persistent, you can petition the probate court to remove the Executor. This petition is usually based on various grounds, such as:

• They have failed to fulfill their duties – Such as failing to pay estate debts and taxes or appropriately distribute assets.
• There is an inherent conflict of interest – The Executor could be inappropriately benefiting personally from the estate.
• They have mismanaged the estate’s assets with disregard – This can include many items, but essentially, they managed the finances improperly.
• You can request a complete accounting – Under Florida law, the Executor must provide a detailed estate accounting. If your family or beneficiaries believe the estate is mismanaged, you should formally request the accounting and a detailed list of all the estate’s assets, liabilities, and transactions.
• Have your lawyer file a formal complaint with their professional association – If your Executor is a professional, such as an accountant or financial advisor, you can file a formal complaint with their professional licensing board or association.

If you feel that the estate is being mismanaged, there are other key points that an heir or beneficiary must remember.

For example:

• Fully document the mismanagement and keep detailed records of the Executor’s inappropriate actions.
• Then, be sure to consult a qualified and professional estate planning lawyer– Your estate planning lawyer, well-versed in probate law and estate plans, will help you navigate the complex legal process and fully protect your family and beneficiaries’ interests.

I Believe My Executor is Not Doing Their Job; How Should I Proceed?

First, you must not jump to conclusions without professionally investigating what is being done and whether your fears are based on fact.

Any hasty or unguarded actions can do more to jeopardize a valued estate that you are trying to protect. The prudent thing to do is to thoroughly discuss your case, the facts, rights, and legal options with a highly qualified, diligent, and experienced estate planning lawyer.

Your lawyer will ensure the details and fears in your case are founded and then explain precisely what you should do about it.

The estate planning and probate administration lawyers at Bloodworth Law, PLLC have extensive and in-depth legal knowledge that will make their help invaluable in protecting your assets and your family’s financial legacy.

Call them today at 407-449-8958 for a free consultation on your case. They will work tirelessly to solve any Executor issues and put your mind at ease.