The Careless Estate: Beneficiaries Suing on Behalf of the Estate

Executors have several responsibilities when administering an estate. This includes accounting for all assets, debts, and money exchanges coming into and out of the estate. When the executor is ready to distribute to beneficiaries, they are typically required to provide a copy of these accounts. Depending on the value and complexity of the estate, this can be an extremely detailed, complex document. In the case of a careless executor, beneficiaries might raise questions over where certain assets and accounts went during administration.

Sometimes, an inheritance can change a beneficiary’s life, and it can be stressful waiting when the executor is not managing assets as expected. Unfortunately, some executors have attempted theft by not accounting for assets in their report to the beneficiaries. It’s important that beneficiaries proceed with caution in agreeing to the accounting details.

If a beneficiary believes the final accounts are not proper, there are two options available to them:

1. Forcing the executor to act; or,
2. Suing on behalf of the estate.

This blog will talk how about how beneficiaries can sue on behalf of the estate.

Suing on Behalf of the Estate

While beneficiaries might feel helpless during estate administration, they do have rights to ensure the executor is managing administration properly. Most importantly, beneficiaries are entitled to the accounting information during the estate administration process. An executor is required to give this information when requested by a beneficiary. Beneficiaries can keep a close eye on the estate through the accounting information if they’re suspicious of the executor’s actions.

If a beneficiary believes an estate asset has been intentionally misrepresented, they can sue on behalf of the estate.

Suing Under WESA

According to the Wills, Estates and Succession Act, beneficiaries are allowed to sue on behalf of an estate in BC:

• To recover property or to enforce a right, duty or obligation owed to the deceased person that could be recovered or enforced by the personal representative, or
• To obtain damages for breach of a right, duty or obligation owed to the deceased person.

Usually, suing an executor on behalf the estate will result in the executor being ordered to detail where the missing asset is. It may result in their removal as the executor and if they are entitled to an inheritance, can result in their removal as a beneficiary all together. In extreme cases where the executor was behaving inappropriately, they can be ordered to compensate the beneficiaries by paying from their own assets.

While it may seem like the only option, most matters like this can be resolved without help from the courts. Having an outside party, like a lawyer, speak with the executor can solve most estate problems in a much faster and easier fashion.

Beneficiaries may feel as if they do not have a lot of control over the estate administration process; however, there are options available to ensure the process is done correctly. If you’re a beneficiary that thinks an asset has been misrepresented, contact an experienced estate lawyer today to begin solving this problem sooner rather than later.

Have a question about this topic or a different legal topic? Contact us for a consultation. Reach us via phone at 250-888-0002, or via email at info@leaguelaw.com.