Beneficiaries don’t always get along with the estate’s executor. Some estates involve disputes between these parties, particularly when beneficiaries believe the executor is not acting in the best interest of the estate.
Below are three common problems between an executor and beneficiaries:
1. Lack of communication
Communication is one of the duties of an executor. They are required to adequately inform beneficiaries about the estate and the probate process. Beneficiaries should know when the will goes to probate, the overall estate assets, when an asset is sold, when a debt is paid and when to expect distribution.
Further, when beneficiaries ask questions about the estate, the executor should provide open and honest answers promptly. Conflict may arise if an executor fails to update beneficiaries regularly or at all, is not transparent, or takes too long to respond to inquiries.
2. Conflict of interest
An executor may act in a way that benefits them or their relationship with one of the beneficiaries. Such conflict of interest may lead to disputes.
For example, when an executor favors a beneficiary concerning communication or distribution or when they own a business that could benefit from acquiring assets from the estate, perhaps they own a real estate company and decide to sell property from the estate to their company at discounted prices.
3. Failing to work
Some executors don’t perform their duties despite accepting their appointment. They fail to pay taxes and debts, manage the estate, file paperwork, communicate with beneficiaries and so forth. They may do this because they lack the required skills, are overwhelmed by responsibilities or are delaying distribution for personal gain.
It’s crucial for executors to work with other professionals to ensure they perform their duties competently.
Conflicts between executors and beneficiaries can substantially delay asset distribution. Both parties should be well-informed to make appropriate decisions.