An executor is legally liable to the beneficiaries of the estate for the losses caused by their actions. Beneficiaries or any other person with a legal interest in the estate, such as an unpaid creditor of the deceased, have the right to ask the probate court to require accounting from the executor if they believe he is stealing the estate. The court orders the executor to provide an inventory list, a full account of what he has done so far, and supporting evidence, such as receipts and cashed checks. If the court finds that the executor is stealing, his authority to act for the estate is revoked and he no longer has access to the assets.
Usually, the court appoints a new executor or administrator instead. Beneficiaries should act quickly if they believe that a personal representative is stealing assets. Once the money runs out, it goes away. Yes, you can take the executor to court and possibly even have him charged with theft.
But that won't return the money. Most allegations of theft of property tend not to escalate to the level of criminal prosecution, but allegations of theft of substantial amounts that can be proven with solid evidence can rise to that level. Beneficiaries can suspect and hire an estate lawyer or report the suspect to the police and hire an estate lawyer to obtain the inheritance to which they are entitled. The Surrogacy Court in New York does not oversee the administration of the estate and does not act as the guardian of the estate.
The problem lies in the fact that the executor is the only person or entity that controls the assets of the estate. If the executor of the estate refuses to make distributions, keeps secrets, or is stealing assets, don't delay. A person with an interest in the estate can request the removal of an executor if there are substantial grounds for doing so. After a person's death, their executor will perform a variety of legal functions, including selling property, paying creditors, filing any claims that need to be filed, and, if necessary, reviewing medical records and distributing assets to designated beneficiaries.
The executor withdraws money from the deceased's financial accounts and sells assets and personal assets that are not left to a specific person in the will. Beneficiaries should expect to receive regular updates documenting how the executor is handling the probate plan. If you truly believe that there is some type of executor misconduct, there are ways to handle the situation. A smart executor would want to avoid transferring the assets of the estate to himself, even if he paid fair and market value.
If beneficiaries believe that there has been a breach of fiduciary duty on the part of the executor, the executor can be brought to court and even charged with theft. Fortunately, there are things you can do to get executors to act appropriately, although you need to understand what the executor is required to do by law and what actually constitutes executor misconduct. These duties include collecting estate assets, paying estate debts, distributing assets in accordance with the will or trust, and paying the cost of managing the estate, such as attorney's fees and filing fees in court. If the court finds that the executor improperly took funds from the estate, the court may order the executor to reimburse the estate for his attorneys' fees.
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