The executor must keep beneficiaries of the will apprised of important developments and decisions affecting the estate. If the executor fails to disclose beneficiaries with a proper accounting of the estate’s affairs, a beneficiary may petition the court to compel the executor to provide one. Beneficiaries may also take legal action, such as asking the court to replace the executor if they think the executor’s accounting is inaccurate or there is evidence of executor misconduct or negligence. Executors can generally fulfill these responsibilities by acting prudently and staying transparent with beneficiaries.
The attorneys at Albertson & Davidson, LLP can help if the executor of an estate to which you are a beneficiary is acting inappropriately. We are aggressive trial lawyers who focus on trust and estate litigation in California to protect our clients’ inheritance. We may be able to help you remove and replace an executor or contest a will.
Contact us online or at (877) 637-7234 for a free initial consultation.
An Executor’s Disclosure Responsibilities
The executor of a will is responsible for protecting the interests of a decedent’s estate as it goes through probate. The executor is appointed by the probate court to act as personal representative of the estate and to collect the estate’s assets, pay its debts and expenses, and distribute the remainder of the estate to the beneficiaries as instructed by the will.
The executor’s first duty to beneficiaries of the will is to identify, locate, and contact them to advise them of their status as beneficiaries. This should be done in writing.
A beneficiary of the will has the right to a copy of the will, which the executor should provide.
As the executor administers the estate, they should regularly communicate with beneficiaries to keep them informed of decisions and transactions that affect the status and/or value of the estate.
The executor must identify all of the decedent’s assets and debts. Then they must make an inventory of what the estate owns and owes and determine how debts will be paid (i.e., with existing funds or by selling assets).
The executor of the will has a fiduciary duty to ensure that each beneficiary of the will receives the money, property, or other assets they are entitled to under the terms of the will.
Beneficiaries of the will have a right to information about the status of the estate, including its assets and debts and how the executor plans to pay the debts, including taxes. The executor should provide general information as part of ongoing communications. If a beneficiary has specific questions, the executor should answer them in a timely manner. The executor must prepare a full accounting with the court, and beneficiaries should be provided with a copy.
According to the California Probate Code, an accounting should include the following information:
- The property and value of the estate at the beginning of the accounting period
- The value of any assets received by the estate during the accounting period
- Income receipts
- The estate’s gains and losses from asset sales
- The estate’s net business income and losses
- The content of each asset disbursement
- The property and value at the end of the accounting period
Notifying Beneficiaries When Selling Assets of the Estate
The executor of the estate has the authority to sell the decedent’s property to raise the money needed to pay the estate’s bills. They can typically sell personal property (e.g., vehicles, jewelry, art) without the consent of beneficiaries or the court. But consent may be required before selling real estate.
When the court appoints an executor, it may give them “full authority” or “limited authority” to act under California’s Independent Administration of Estates Act (IAEA). The IAEA was established to streamline the probate administration process by granting executors the authority to administer most matters regarding the estate without court supervision.
The decedent’s will can grant authority under the IAEA, prohibit it, or not mention it. An executor may request authority in the Petition for Probate or at any time during probate. The court’s letters of administration or letters testamentary establish the executor’s level of authority.
An executor with full authority can sell real estate or obtain a secured loan without notifying beneficiaries and without court approval by filing a Notice of Proposed Action.
With limited authority, the executor may administer the estate under IAEA terms but must obtain the court’s permission to:
- Sell the estate’s real property
- Exchange or extend an option to buy real property in the estate
Even with full IAEA authority to sell real estate, the executor must file a Notice of Proposed Action with the court 15 days before acting. The executor must provide copies of the Notice of Proposed Action to individuals and legal entities with an interest in the matter, including beneficiaries of the will.
Any beneficiary who objects to the action can ask the probate court to issue a restraining order preventing the executor from carrying out the action.
Contact a California Inheritance Litigation Attorney
A beneficiary of a will filed for probate in California who thinks the executor is not doing what the will directs or is not acting in the estate’s interest has the right to ask the probate court to take corrective action. A beneficiary may ask the court to instruct the executor to perform or refrain from certain acts or to remove and replace the executor.
If you are the beneficiary of an estate in probate and suspect the actions of the executor of the estate or other beneficiaries are harmful to your interests, the attorneys at Albertson & Davidson, LLP can help you. We are aggressive California trial lawyers who focus on trust and estate litigation to protect our clients’ inheritance. Our law firm’s motto is: We stand. We fight. We win.
Contact us online or at (877) 637-7234 for a free initial consultation. Albertson & Davidson has offices in Los Angeles, San Diego, Carlsbad, Bay Area, and Irvine.
