An estate owner assigns a fiduciary or personal representative in their estate plan to act on their behalf and execute their instructions when they can longer do so due to death or incapacity. The personal representative has a fiduciary duty to the owner and the estate. A breach of fiduciary duty happens when the personal representative uses their fiduciary designation to prioritize their own interests over their obligations to the estate and the estate’s beneficiaries.
Signs a personal representative breached their fiduciary duty
By accepting a fiduciary duty, the personal representative agrees to act in good faith with candor and honesty when managing the estate. Their role involves significant responsibilities, including gathering and managing the estate assets and documents before distributing them to the beneficiaries. They have access to the decedent’s entire estate, meaning a breach of fiduciary duty can happen at any given time. Here are the warning signs beneficiaries should look out for:
- You notice that assets are missing.
- The personal representative cannot present or locate certain records upon request.
- The value of the estate is rapidly diminishing.
- The personal representative is playing favorites or prioritizes one or more beneficiaries over others.
- The personal representative is not following the explicit instructions of the decedent.
- The personal representative combined their assets with the estate assets.
- You observe conflicting interests, such as self-dealing or when a personal representative invests estate assets into a friend’s business.
A personal representative should be able to provide a thorough accounting of all the assets and liabilities of the estate, including paperwork that allows you to trace any transactions they made.
What can you do if you suspect a breach of fiduciary duty?
You have a right to obtain a court order to force a fiduciary to provide a full accounting of the estate assets or relieve them from their duties. However, these cases can be complex and challenging, especially if the fiduciary is unwilling to step down from the role.
A breach of fiduciary duty is a serious accusation, but you have a right to question malfeasance and unscrupulous behavior. The estate is your loved one’s legacy. They can no longer stand up for themselves, but you can act on their behalf.
