The executor or personal representative of an estate serves in a position of trust and authority. They have control over an individual’s resources and ultimately determine the legacy they leave after their death. Most people who accept the responsibility of estate administration make a concerted effort to follow the instructions provided by the testator and comply with New York law.
Unfortunately, some people view their role as personal representatives as an opportunity rather than an obligation. They look for ways to enrich themselves and profit off of their responsibilities instead of prioritizing the wishes of the decedent and the beneficiaries of the estate. They technically have a fiduciary duty to prioritize the best interests of the beneficiaries.
What are some of the ways that a personal representative might violate the duty they owe an estate and its beneficiaries?
Making emotional decisions
There are two very clear sources of black-and-white guidance for estate administration. Ideally, the decedent left behind a will or other testamentary instruments. Their instructions are a key consideration throughout the estate administration process. Additionally, the personal representative of the estate must conform to New York probate laws. Unfortunately, they may let their own preferences or feelings interfere with following the law or the instructions of the decedent. Especially if they have a better relationship with one beneficiary than others or if they are estranged from a particular beneficiary, they might deviate from their obligations by treating someone differently than they should.
Embezzling from the estate
A personal representative has direct access and control over both financial and physical resources. Their job usually entails securing and maintaining those assets until they can distribute them according to state law or the decedent’s instructions. Sadly, some personal representatives embezzle. They may pocket cash that they find in someone’s house or steal pieces of jewelry. The misappropriation of estate resources is a violation of New York law and also the fiduciary duty owed to the estate.
Self-dealing
Quite a few people run small businesses or professional practices. Maybe the personal representative has a property maintenance company that they own. They might contract their company to manage the decedent’s home and pay an above-market rate for those services. On the other hand, they might hire a spouse to provide services. Self-dealing typically involves performing work for the estate at a cost above what other professionals might charge or providing less professional services for the same price as is average. Self-dealing can lead to diminished estate resources.
Concerned beneficiaries may sometimes need to initiate probate litigation if they suspect misconduct during estate administration. Challenging or removing a personal representative can potentially help to preserve estate resources.