As the executor of someone’s estate, you have a pretty big job. You’re doing your best to handle everything intelligently and appropriately – but you still might get sued.
Beneficiaries have the right to sue the executor of an estate if they believe that the executor has somehow violated their fiduciary duty toward them. You may find yourself on the receiving end of a lawsuit because a beneficiary thinks you are playing favorites, playing games with the estate’s assets or just plain incompetent.
How do you navigate what can be a tricky situation with a difficult heir whose misunderstanding of the probate process is making it hard to do your job? Here are some suggestions:
1. Have a communication plan
A lot of issues can be caused by anxiety – and the beneficiaries may be understandably anxious about their future now that their loved one is gone. Establish a routine where you give the estate’s beneficiaries regular updates. Keep them informed about the probate process, timelines and any significant developments as they arise. This can help you manage expectations and address beneficiary concerns before they boil over.
2. Keep it professional
You can and should still have some boundaries, even while working hard to accommodate the beneficiaries’ needs. Let them all know you will communicate anything of importance in writing, and then do so. That way, you create a record of everything that’s discussed, which can be useful later if you have to defend yourself in court. Make sure that you always remain calm and professional in your communications – even if they don’t.
3. Protect yourself
Being an executor of someone’s estate can expose you to personal liability if something goes wrong. You can protect yourself by posting a bond, even if the bond requirement is waived by the will or the beneficiaries agree to waive it. The testator or their heirs may not want the expense (since the money for the bond ultimately has to come out of the estate’s funds), but that bond protects you both if there are problems. You may also want to consider executor liability insurance, which is designed to cover you if you make any mistakes.
Finally, it’s much harder for a difficult beneficiary to create chaos when you have experienced legal guidance by your side. Involving a professional in the estate administration process just adds another level of security for everybody.