A person’s property typically becomes the contents of their estate after they die. Those assets pass either to chosen beneficiaries if the person had an estate plan or to heirs if they died without a will.
Beneficiaries or heirs expecting to inherit from an estate must wait for the personal representative to make distributions to them. Personal representatives may sometimes transfer physical assets to beneficiaries or heirs.
Other times, they may liquidate property to distribute proceeds among beneficiaries. Improper management of estate resources during a sale could be grounds for probate litigation.
Are critical resources at risk?
In some cases, personal representatives might undervalue assets due to a lack of information. They may be unaware of what collectibles or other valuable personal property are worth. If they do not understand the fair market value of resources, they might sell them for far less than what they are actually worth.
Other times, undervaluating assets might stem from a desire for personal enrichment. The personal representative might sell assets to themselves, a business they own or someone in their inner circle. They sell those resources for far less than they are worth and may then resell them for profit later or might receive a kickback for providing access to those resources at below the market value.
Regardless of whether the improper management of estate resources occurs due to corruption or incompetence, civil litigation may be necessary. Filing a lawsuit can prevent the transfer of key resources or could remove a personal representative from their role. Concerned beneficiaries and heirs may need to discuss their circumstances with a probate lawyer to understand their rights.