Rights of an Estate Beneficiary to Sue an Executor

Thankfully for an estate beneficiary, anyone who must distribute an estate after a person dies is held to high standards while carrying out fiduciary duties.

Estate beneficiaries enjoy certain rights and can hold executors of estates to account for their actions. When an estate is being probated and administered, beneficiaries should pay close attention to proceedings and stay informed of progress. Sometimes, executors knowingly or unknowingly make errors that breach beneficiary rights. Litigation may be necessary if matters cannot be resolved through other means.

So, what are the rights of an estate beneficiary to sue an executor and when would this be an acceptable course of action?

When a will has been left by a decedent, an estate beneficiary stands to inherit assets as designated in the will.

If a will has not been written (i.e., the individual dies intestate), the court will appoint an administrator to manage the transfer of the decedent’s assets to the heirs, according to Mississippi’s laws of succession. These laws dictate the order of priority in which the heirs inherit assets, beginning with the closest family members, such as a surviving spouse or children, and then passing to the more distant relatives if no close family members are alive.

Before an estate can be distributed in Mississippi, the will must usually be probated, i.e., pass through a formal court-supervised process (“probate”). In most cases, probate is required before any assets can be distributed or an executor can take any meaningful actions with the estate. Most financial institutions require proof of probate before allowing assets to be transferred to the estate beneficiaries.

The personal representative or executor of the estate (usually named in the will) is responsible for organizing probate and often hires a probate lawyer to assist with the process.

After probate, which can take several months to complete, the executor is expected to pay creditors, account for the assets, and begin distributing the estate according to the stated wishes of the deceased. However, property in the decedent’s trust or assets with designated beneficiaries can usually be distributed before probate has been completed.

Estate beneficiaries should be familiar with certain rights they enjoy when the probate and estate distribution processes begin. For instance, beneficiaries have the right to see a copy of the will, receive up-to-date information about the estate from the executor (including accounting), and even suspend or remove the executor for improper or unethical actions.

Ultimately, the executor or administrator must act in the best interests of the estate beneficiaries (rather than their own interests) and distribute the assets intended for beneficiaries in a timely manner. This is known as their fiduciary duty and it requires impartiality towards all beneficiaries.

If the fiduciary duty is breached or beneficiaries’ rights are violated, beneficiaries may reach out to an estate lawyer. With beneficiary rights and protections in place, legal action may be necessary if the executor does not rectify the situation to the beneficiary’s satisfaction.

Estate beneficiaries have the right to sue an executor or administrator if their interests are not being looked after according to the executor or administrator’s fiduciary duty—or alleged misconduct has occurred. Sometimes, breaches are unintentional but, in other cases, an executor willfully engages in misconduct.

The main reasons to sue an executor in Mississippi are negligent management of the estate assets or intentionally misappropriating estate property. If sufficient evidence suggests the personal representative breached their duties and caused harm to the estate, beneficiaries may sue the individual involved with the help of a qualified estate lawyer.

Grounds to sue an executor

Estate beneficiaries must have legal grounds to sue an estate executor. This can result in the removal of the executor. The main reasons for estate lawsuits against executors in Mississippi include:

• The executor misappropriated estate assets for personal gain
• The executor mismanaged estate assets
• The executor failed to provide accountings to estate beneficiaries
• The executor favored some beneficiaries over others
• The executor failed to pay taxes on the estate
• The executor endangered estate assets by making risky investments
• The executor placed personal interests above the interests of the estate beneficiaries due to a conflict of interest

As beneficiaries, observing the executor’s conduct during the probate and estate distribution process can prevent issues that may affect inheritances. Let’s consider some warning signs to look out for during this process…

Poor communication with beneficiaries

Part of the executor’s duty is to keep beneficiaries reasonably up to date with the estate distribution process. Communications should cover at least the following:

• Notification that you are included in the will as a beneficiary
• Notification of the value of the inheritance and an inventory of estate assets
• Regular updates about the status of the estate and any issues that arise
• Updates about any key decisions made
• Answers to any questions that you ask
• Estate accounting

Failure to communicate this type of information may constitute grounds to challenge an executor in the Mississippi courts.

A delinquent inventory

The executor must inform beneficiaries of the estate inventory and provide an appraisal of all the assets in an estate within a few months of being appointed and must request an extension if not possible.

Failure to take these steps may be an early warning sign that the executor is not acting in good faith. A beneficiary may contact a probate lawyer at this stage to further monitor the executor’s conduct.

Withholding or delaying inheritance

One of the most frustrating aspects of estate administration for beneficiaries is when inheritances are delayed. Estate distribution in Mississippi is not a rapid process and can take many months. However, unreasonable delays after probate should be investigated and, if necessary, challenged.

In most cases, an executor can only distribute the assets in an estate once approved by the court (probate) and all debts are paid. Unreasonable delays and missed deadlines can add costs to the estate and affect inheritances, so beneficiaries may be within their rights to sue the executor if this happens.

Withholding inheritance as an act of revenge due to a disagreement or to favor another beneficiary is also grounds for executor dismissal via a lawsuit.

Not protecting (or undervaluing) estate assets

Lapsed or inadequate insurance on valuable estate assets can endanger the estate and may be grounds for dismissal, especially if other mistakes have been made by the executor.

Similarly, willfully undervaluing estate assets and selling them for less than they’re worth is not generally in the interests of beneficiaries and may, therefore, constitute a serious breach of fiduciary duty.

Creditor claims or paying expenses with estate assets

Executors usually have the right to be reimbursed for expenses incurred during the estate administration process but making creditor claims before inheritances have been distributed or paying expenses with estate assets may be considered misuse of estate funds by beneficiaries.

Creditors should set up a separate account to pay bills and make deposits on behalf of the estate to avoid commingling of assets with personal funds.

Executors are placed in a position of great responsibility when administering estates. If mistakes are made, beneficiaries can hold them accountable with the help of an experienced estate litigation lawyer.

If you need assistance from a probate or estate litigation lawyer serving the Gulf Coast of Mississippi, contact Rushing & Guice, PLLC for legal advice.