Personal representatives take on a relatively thankless position. They work long hours securing and managing resources. They communicate with creditors and attend court proceedings. They help settle family conflicts and uphold the wishes of the deceased individual.
Most of the time, surviving family members are grateful that personal representatives take responsibility for estate administration so that they can grieve without any added stress. However, families may sometimes question the conduct or intent of a personal representative.
State probate statutes allow for the removal of personal representatives if they embezzle from the estate or otherwise engage in intentional misconduct. Concerned beneficiaries and even creditors could also potentially initiate probate litigation in an effort to remove a personal representative who has diminished the value of the estate.
Fiduciary breaches are not always intentional
Personal representatives and trustees have a fiduciary duty to the estates or trusts that they administer. In plain English, they have an obligation to act in the best interests of beneficiaries rather than just pursuing their own enrichment. Many of the most egregious and damaging breaches of fiduciary duty involve an intent to misappropriate resources or defraud the estate.
However, personal representatives can also violate their fiduciary duty through inaction and incompetence. Family members may question their decisions, such as the choice to liquidate estate resources for less than their fair market value. The failure to secure assets appropriately could also result in a significant reduction in the overall value of the estate.
If parties with an interest in the estate can show that a personal representative caused a reduction in the overall value of the estate through inaction or inept management of resources, they may be able to ask the courts to remove the personal representative.
Replacing someone who struggles to competently manage estate resources or who has otherwise breached their fiduciary duty can help preserve the remaining assets in the estate. In some cases, a personal representative may even be liable for the impact their actions or negligence have had on the value of the estate.
Reviewing questionable decisions and disclosure records regarding estate resources can help beneficiaries and other interested parties determine if a breach of fiduciary duty occurred. Probate litigation to remove a personal representative may be the best option available after poor choices or inaction diminish the value of the estate.