The beneficiaries of an estate may inherit property directly. Other times, the decedent may have provided instructions for the personal representative to liquidate or sell some of their resources and to allocate the proceeds of those sales in a specific manner.
Typically, the beneficiaries of an estate trust a personal representative to carry out their duties effectively. Most of the time, those who accept a role as personal representative do so with the intention of fulfilling the last wishes of the deceased individual.
However, some people might try to abuse that authority. When liquidating estate resources, a personal representative might try to sell them to themselves or someone with whom they have a close relationship for a fraction of their true value. Beneficiaries who discover an inappropriate sale in the works may need to take legal action to prevent it from occurring.
Representatives shouldn’t seek personal profit
A personal representative administering an estate has a fiduciary duty to its beneficiaries. They have a legal obligation to put the best interests of those receiving property from the estate ahead of their own wishes.
Not everyone can set aside their personal avarice during estate administration. If an estate representative wants to enrich themselves, acquiring real property, vehicles and other valuable assets at a fraction of their fair market value is a good tactic. So is a plan allowing for another party to purchase those assets on their behalf. They might receive a kickback or may be able to buy them back from the purchaser after the end of estate administration.
When beneficiaries of an estate uncover plans to sell resources for far less than their fair market value, they can ask the courts to intervene. The probate courts can potentially halt a pending transfer of estate resources that could diminish the overall value of the estate and reduce what people inherit.
The courts can also remove a personal representative who abuses their position for personal enrichment instead of acting in the best interests of beneficiaries. In cases where questionable transactions have already occurred, beneficiaries may be able to remove a personal representative and ask the courts to hold them accountable for the value of the estate resources sold for an inappropriately low amount.
Initiating probate litigation can potentially help the beneficiaries of an estate protect themselves, their inheritance and the intentions of the decedent. If a personal representative tries to use their role for personal enrichment, beneficiaries may need to take action before it is too late.