Even if you know that you’re one of the beneficiaries of a loved one’s estate, it can take several months (and sometimes even a year or more) to receive the assets that were left to you. But if the person managing the estate mishandles the assets within it, you could be waiting much longer.

If you think the executor or administrator of a decedent’s estate is mismanaging the assets within it, it’s easy to feel powerless. However, when you know what steps to take, you may be able to hold the executor accountable while preventing further loss.

Who Manages an Estate?

One of the most important parts of estate planning is choosing an executor. The executor is named in a decedent’s will, and they are responsible for overseeing the estate and the distribution of assets. These are some of an executor’s main responsibilities:

• Taking inventory of the decedent’s assets
• Paying debts and taxes using estate funds
• Distributing remaining assets to beneficiaries according to the decedent’s wishes
• Initiating and handling the probate process

The executor of an estate has a fiduciary duty, meaning they are obligated to act in the best interests of the estate at all times.

If a person dies intestate (without a will), they haven’t named an executor to manage their estate. When this happens, the court will appoint an administrator. The administrator has the same essential duties as an executor.

These Warning Signs Indicate an Executor Is Mismanaging an Estate

When someone selects an executor (or the court appoints an administrator), that person has been chosen because they have the skillset to successfully manage an estate. Unfortunately, some executors and administrators mishandle estate assets, either intentionally or unintentionally.

As a beneficiary, you should know some of the warning signs that your loved one’s estate is being mismanaged:

They Haven’t Filed an Inventory of Assets On Time

In California, executors and administrators have four months to file an inventory and appraisal of assets. If the person overseeing the estate hasn’t filed an inventory and appraisal and hasn’t requested an extension, that may be a sign that they’re acting in bad faith.

You Aren’t Getting Updates

An executor is responsible for managing and distributing an estate, but they also must keep estate beneficiaries informed. Usually, you can expect an executor to contact you early in the process to inform you that you’ve been included in the will. From there, they should give you periodic updates.

If you’ve heard very little from the executor, that’s a red flag. And if the executor evades questions when confronted, that’s an even bigger red flag.

You Suspect Self-Dealing of Estate Funds

When an executor or administrator engages in self-dealing, they’re using the assets in the estate for their own benefit. These are some common examples:

• Selling estate assets to themselves or their friends for far less than market value
• Using estate funds to cover personal expenses
• Taking loans from estate funds
• Paying themselves high fees
• Personally using estate assets (like homes or vehicles) without paying

Sometimes, unreasonably delaying asset distribution is a sign of self-dealing. If the executor wants to keep estate assets for personal use, they may try to drag out the process as long as possible.

You Notice Conflicts of Interest

Conflicts of interest are a common sign of estate asset mismanagement. For example, if an executor hires their own real estate brokerage firm to sell estate-owned properties, it may signal that they are not acting in the best interests of the estate.

Steps Beneficiaries Can Take When an Executor Is Mismanaging an Estate

Estate mismanagement isn’t just about money. It’s also about disregarding the wishes of the decedent. If you believe that an executor or administrator is improperly handling an estate, you have legal recourse. In many cases, these steps can help you protect your rights and strengthen your case:

Documenting Misconduct

First, gather any documentation of potential misconduct or mismanagement that you can find. That might include communication from the executor, property tax records, the inventory of the estate’s assets, and financial records. In many cases, you’ll need a formal accounting of the estate to prove financial misconduct.

Asking for a Formal Estate Accounting

A formal accounting is a detailed document covering the financial handling of the estate. It usually includes the following:

• An inventory of estate assets
• A record of estate income
• A record of estate transactions
• A list of administrative expenses, debts, and taxes
• A record of any assets already distributed

Usually, the first step is to send a written demand to the executor. If the executor will not provide a formal accounting, it may be necessary to file a petition with the probate court to compel one.

Consulting an Attorney

Proving that an estate has been mishandled can be more challenging than it initially appears. Probate law is also uniquely complex. Early legal guidance can make a meaningful difference, both in understanding your rights as a beneficiary and in exploring whether the matter can be resolved without the time and expense of litigation.

Filing a Petition to Remove the Executor or Administrator

If the executor or administrator is mismanaging the estate, the best course of action might be to petition for their removal. This involves submitting a formal petition (along with evidence of misconduct) to the court. The court will likely hold a hearing to determine whether the executor should be removed.

KJM LAW Helps California Beneficiaries Hold Executors Accountable for Estate Mismanagement
When executors or administrators mismanage estate funds, beneficiaries have legal recourse. Navigating that process, however, requires a clear understanding of probate law and the options available.

The KJM LAW team is committed to guiding California families through the complexities of trusts and estates law. If you believe an estate is being mismanaged, we welcome the opportunity to discuss your situation and explore your options.