When it comes to estates, fiduciary duties are a way to make sure that assets get into the right hands.
These are important rules executors follow to make sure everything happens properly. However, sometimes people do not follow these rules, leading to breaches and the need for fair compensation.
Mismanaging assets
A common breach comes from the misuse of estate assets. This may include poor handling of funds, such as using estate funds for personal expenses or making risky investments that hurt the value of the estate.
Having conflicts of interest
Conflicts of interest happen when an executor’s personal interests get in the way of doing what is best for the beneficiaries they need to help. For example, if the executor tries to buy items from the estate, it may lead to a conflict of interest since they could set their own prices and shortchange the estate.
Neglecting duties
Executors should have a high standard of care and competence. If they are careless or not very good at their job, it can cause problems for the people they should help. This could include failing to carry out the dead individual’s wishes.
Keeping secrets
Being honest and open is key in estate planning. If an executor does not share important information, it can lead to misunderstandings or hurt feelings among family members. Everyone involved should know what is happening so they can make decisions together.
Dealing with an erratic executor may seem overwhelming at first for some individuals. By staying calm and noticing patterns of behavior, beneficiaries can spot potential breaches of fiduciary duties.
