Estate litigation is probably the last thing your deceased family member would want, but what if their estate executor breaks the rules? The only way to make things right in the face of misconduct is typically through litigation
Although your loved one likely chose their executor carefully, it doesn’t mean they will act in everyone’s best interests. The sections below contain information about litigation when an executor comes up short in their obligations.
What is breach of fiduciary duty?
An executor has a fiduciary duty to make decisions in the interests of the estate and its beneficiaries. Those who fail in these obligations have breached or violated their fiduciary duty.
Below are some examples of executor breach of fiduciary duty:
- Investing estate funds improperly
- Embezzling money from the estate
- Misplacing or losing estate property
- Distributing estate assets improperly
- Failing to file tax returns or pay taxes on time
Another common reason for estate litigation arises if the executor uses estate funds to benefit themselves.
What are the possible remedies?
The court may decide to replace the executor with someone who is better able to fill the role. Probate courts also have the power to order the executor to pay the beneficiaries’ financial damages. A judge may also make the executor pay punitive damages if their conduct is particularly egregious.
Before you initiate litigation, learn more about the various probate and estate laws specific to Nevada residents. Taking this step helps you determine if you have grounds to sue your loved one’s estate executor.