New York City Estate Litigation Attorneys Antonelli & Antonelli

Estate fiduciaries, such as executors and administrators, wield tremendous power. They are entrusted with managing the estate (money and other assets) of a person who passed away—the decedent. Fiduciaries are then tasked with distributing the estate to the people entitled—the beneficiaries. Sometimes the job doesn’t get done properly, whether because of intentional or accidental misconduct.

Here Are The Five Worst Forms Of Fiduciary Failings

1. Misappropriation

Misappropriation of funds New York City Estate Litigation Attorneys Antonelli & Antonelli

This trusts and estates transgression goes by many names: skimming, pilfering, embezzlement, or just plain thievery.

Executors have the authority to hold a decedent’s money, but it’s not theirs for the taking. They’re required to act in the beneficiaries’ best interest and resist the temptation to take a little off the top. Some scheming executors spend estate money on their rent, shopping sprees, and jaunts to Atlantic City. Most executors do their job. But if you succumb to your inner Bernie Madoff, you’ll likely face the wrath of the Surrogate’s Court—and possibly the District Attorney.

Thieving executors can be removed from their position, forced to return stolen assets, and in some cases, prosecuted criminally. If you’re wary of a conniving executor, you have options, but taking action quickly is key.

2. Self-dealing

Estate Litigation Lawyers New York City Antonelli & Antonelli

Self-dealing occurs when an executor puts their own interest ahead of the estate’s. 

A common scenario involves a fiduciary purchasing property from the estate without first obtaining court approval. For example, a decedent leaves her home to her brother and two sisters. Her brother is appointed as executor and wants to sell the home to himself. But the brother is on both sides of the deal: seller (as executor) and buyer (individually). He would be dealing to himself, making this situation ripe for wrongdoing, such as selling the home to himself for pennies on the dollar.

3. Neglect

Fiduciary Responsibility New York City Estate Litigation Lawyers Antonelli & Antonelli

This form of fiduciary misconduct occurs where an executor fails to do their job. An executor must collect the decedent’s assets, pay the decedent’s debts, and then hand over the remaining assets to the beneficiaries. Failure to attend to any of these tasks can be considered neglect, and even with no resulting financial damage, the Surrogate’s Court can impose penalties. Often, an executor simply does nothing to administer an estate—doesn’t collect assets, doesn’t pay debts, and doesn’t give the beneficiaries their inheritance. This is a blatant example of fiduciary neglect.

4. Waste

Waste New York City Estate Litigation Lawyers Antonelli & Antonelli

An executor can be held liable when their action or inaction allows the estate to waste away. Waste is the stepchild of neglect as it’s often borne out of neglect. 

Did the executor forget to file tax returns and the estate got hit with penalties and interest? Did the executor refuse to sell the decedent’s stock portfolio before it got crushed by the market? Situations like these decrease the estate’s value and expose the executor to liability.

5. Violation of a Court Order

Violation of Court Order New York City Estate Litigation Lawyers Antonelli & Antonelli

If the Surrogate orders you to do something, you would be wise to do it. Break this rule and you’ve committed a most avoidable fiduciary faux pas. One of the most commonly violated court orders is a directive to file a judicial accounting (which is often requested by a beneficiary who suspects fiduciary misconduct). This violation is honored with its own section of the Surrogate’s Court Procedure Act as a basis for removal of a fiduciary.

Fiduciary misconduct can result in denial of commissions, surcharge against the fiduciary’s share of the estate, revocation of the fiduciary’s authority, and even judgment against the fiduciary’s personal assets.

These are the Big 5, but the opportunities for bad behavior are endless. 

Do you want to prevent misconduct by an unscrupulous executor? Have you already been harmed by an executor’s misconduct? Are you a fiduciary wrongly accused of breaching your fiduciary duty?

Contact our estate litigation team to find out how we can help.

Do You Need The Help Of An Estate & Trust Litigation Attorney In The New York Metro Area?

If you need legal help with an estate issue you should speak with an experienced estate litigation attorney as soon as possible. Contact us online or call our New York City office directly at 212.227.2424 to schedule your free consultation. We proudly serve clients in Brooklyn, Manhattan, Queens, Staten Island, Nassau County, Westchester County and throughout New York as well as northern New Jersey.

Daniel R. Antonelli
Representing trust & estate clients with an emphasis on estate litigation in the New York City Metro Area.
Join The Conversation
Oshrie zak 03/09/2021 01:14 PM
I love this thank u for educating
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Welty Welty 03/10/2021 01:44 AM
Thank you for the information. Meredith has been a big help !!
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Eugene 03/26/2021 11:53 AM
When Beneficiaries read this, they will be delighted and encouraged, thank you.
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Gail Kathryn 03/18/2022 05:31 AM
Would you accept a case from a beneficiary severely harmed by the Executor, older brother, who is a very evil gambling addict, and wait for house money (currently sold to an investor) for payment? I am medically disabled with metastatic cancer, require inheritance to receive appropriate treatments. For this who don't know, legal aide refuses to assist in probate cases and DSS refuses to assist with housing etc. when they know an inheritance $ is pending :( I've been desperately trying to survive without any support. I do not want to die, as my vindictive brother Ralph has tried so hard to accomplish :( Our Mom died 06/22/2020 (21 months ago!). Have will, leaves equal shares to 4 children. And house deed is solely in Mom's name, Victoria -She bought cash payment in 2017. More details of brother's misconduct available. Gail Kathryn 2 Gmail or Yahoo Thank you.
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