Mismanagement of Estate by Executor: What Beneficiaries Need to Know

When someone passes away, the executor of their estate is legally responsible for handling the probate process in a fair, timely, and transparent manner. However, not every executor fulfills their duties as required under Texas law. If you’re a beneficiary concerned about how an estate is being handled, it’s important to understand the signs of mismanagement and what steps you can take to protect your rights.

Understanding Executor Responsibilities

Executors are fiduciaries; they must act in the best interests of the estate and its beneficiaries. Their core responsibilities include:

• Locating and filing the will with the probate court
• Notifying creditors and government agencies
• Filing an inventory and appraisal of estate assets
• Managing estate property and maintaining insurance
• Paying debts and taxes
• Distributing assets according to the will

If the executor is negligent, dishonest, or self-serving in these duties, it may constitute mismanagement of the estate.

Key Warning Signs of Estate Mismanagement

1. Lack of Communication with Beneficiaries

Executors must inform beneficiaries of their status under the will and keep them reasonably updated. If you’ve received little to no communication, or you’re being ignored when requesting information, this may be a red flag. Consistent transparency is part of an executor’s fiduciary duty.

2. Excessive Delays in Probate Administration

While probate takes time, significant delays–such as missed court deadlines or failure to distribute assets within a reasonable period may indicate mismanagement. In such cases, a probate attorney can help evaluate whether intervention is necessary.

3. Delinquent Inventory Filing

Texas executors are required to submit an inventory and appriasement within 90 days of appointment, unless the court grants an extension. If no inventory is filed and no extension is communicated, this may be the first sign of executor misconduct.

4. Improper Withholding or Unequal Distribution of Inheritance

Executors must distribute assets as outlined in the will and must not favor certain heirs over others. Withholding inheritance due to personal conflict, or distributing assets unequally without legal justification, can be grounds for legal action.

5. Failure to Protect Estate Assets

Allowing insurance policies on estate assets (like real property) to lapse, or not securing adequate coverage, is a serious breach. Executors must take reasonable steps to preserve the value of the estate until final distribution.

6. Selling Assets Below Market Value

Executors should seek fair market value when selling estate property. Selling items at a discount, especially to friends or family, raises questions about favoritism, self-dealing, or even fraud.

7. Using Estate Funds for Personal Expenses

Executors must keep estate funds separate from personal accounts and avoid using estate money for their own benefit. Even if they are also a beneficiary or creditor, they must follow the court-approved compensation rules and maintain financial transparency.

Legal Options for Beneficiaries

If you suspect an executor is mismanaging the estate, speaking with a probate litigation attorney is a practical first step. Legal counsel can help:

• Clarify whether the executor’s actions violate Texas probate laws
• Petition the court for an accounting or inventory
• Request removal of the executor
• Seek recovery of damages or misappropriated funds
  

Remember, not every mistake is misconduct. Some situations result from inexperience or oversight and can be resolved without litigation.

Who Pays Legal Fees in a Probate Dispute?

Generally, beneficiaries must cover their own legal expenses. However, under certain circumstances, the court can award your attorney’s fees if you are successful. Executors may use estate funds for legal defense—unless the court finds their actions unjustified. A probate litigation attorney can help you determine if you have a valid claim for attorneys fees.

When There Is No Will

Even if a loved one dies without a will, a court-appointed administrator assumes the executor’s role. These rules still apply. If you notice signs of mismanagement, such as delayed communication or improper asset handling, an estate litigation lawyer can help you pursue corrective action.

Addressing Estate Mismanagement Without Court Involvement

Not every issue leads to litigation. Often, a conversation with the executor, especially when guided by legal counsel, can resolve concerns. Mediation is also a viable option to avoid lengthy court battles while protecting your rights.

Speak With a Probate Litigation Attorney in Texas

If you are dealing with a potential mismanagement of estate by an executor in Texas, act promptly. At BoyarMiller we help beneficiaries safeguard their rightful inheritance and ensure executors are held to the standards required by law.