Verlan Kwan, partner at Keystone Law Group, summarizes five things you should know about an executor overriding a beneficiary. Read the complete article below for more details. Click the YouTube subscribe button to be notified when new videos are posted.
An executor can override a beneficiary when they are acting in accordance with state statutes, the terms of a will and the level of legal authority they’ve been granted by the court to administer an estate. This holds true even in instances where beneficiaries disagree with their decisions.
That said, an executor is bound to their fiduciary duties, which require them to always prioritize the beneficiaries’ best interests when making estate-related decisions. Therefore, if they intend to override a beneficiary by engaging in such behaviors as ignoring a will, misusing estate assets or self-dealing, they could face severe legal consequences.
When there are executor problems with beneficiaries, it’s natural for beneficiaries to wonder whether executors have a right to override them.
In this article, we will discuss specific scenarios in which an executor may be entitled to override a beneficiary, as well as what legal remedies a beneficiary can seek if an executor has unfairly or improperly overridden them.
When Can an Executor Override a Beneficiary?
When there are beneficiary/executor conflicts that cannot be resolved through an informal back and forth between the two parties, the executor may need to override the beneficiary in an effort to prevent administrative delays and harm to the estate. They may be able to do this by either invoking their authority as executor or taking legal action against the beneficiary.
Perhaps a beneficiary is pestering the executor to release their inheritance earlier than is advisable.
Perhaps a beneficiary is withholding the consent an executor needs to sell estate property.
Perhaps a beneficiary is requesting so much information that it’s becoming burdensome for the estate.
Can an executor override a beneficiary in such situations?
Although estate beneficiaries may feel powerless when an executor is not communicating with beneficiaries about estate-related decisions, they must remember that the executor is permitted to make unilateral decisions in certain scenarios.
That said, if the decisions an executor is making are causing harm to an estate or are beyond the scope of the executor’s authority, beneficiaries can and should take legal action against the executor with the assistance of a skilled probate attorney.
A good way for beneficiaries to prevent problems with the executor is to play an active role in the administration process. If beneficiaries proactively involve themselves, they won’t have to rely on the executor to involve them. Likewise, if they communicate their preferences early, the executor may be more likely to honor them.
If an executor is attempting to override a beneficiary by taking a proposed action without their consent, beneficiaries may wish to consult with their attorney to verify the executor has this right. Most of the time, whether they do depends on whether the court has granted the executor “full” or “limited” authority.
California Probate Code Section 10501 lays out the specific actions requiring prior court approval for both executors with full authority and those with limited authority.
Say an executor has been granted limited authority. While this may enable them to sell the decedent’s personal property (e.g., artwork, jewelry) without the consent of beneficiaries, they would not have the right to sell the decedent’s real property without obtaining prior court approval.
Say an executor has been granted full authority. This would give them the right to take broad action on behalf of the estate without prior court approval. For instance, they could sell real property without prior approval from the court or beneficiaries. However, they would still be required to serve beneficiaries with what is known as a notice of proposed action prior to selling the property to give beneficiaries a chance to object to the sale.
For additional clarity on actions requiring prior court approval, review the lists below.
Actions Requiring Prior Court Approval for Executors with Full Authority:
- Allowance for personal representative compensation
- Allowance for compensation of the personal representative’s attorney
- Settlement of accounts
- Subject to Section 10520, preliminary and final distributions and discharge
- Sale of property of the estate to the personal representative or to the attorney for the personal representative
- Exchange of property of the estate for property of the personal representative or for property of the attorney for the personal representative
- Grant of an option to purchase property of the estate to the personal representative or to the attorney for the personal representative
- Allowance, payment, or compromise of a claim of the personal representative, or the attorney for the personal representative, against the estate
- Compromise or settlement of a claim, action, or proceeding by the estate against the personal representative or against the attorney for the personal representative
- Extension, renewal, or modification of the terms of a debt or other obligation of the personal representative, or the attorney for the personal representative, owing to or in favor of the decedent or the estate
Actions Requiring Prior Court Approval for Executors with Limited Authority:
- All of the actions requiring prior court approval for executors with full authority
- Sale of real property
- Exchange of real property
- Grant of an option to purchase real property
- Borrowing money with the loan secured by an encumbrance upon real property
Explore specific scenarios in which an executor can potentially override a beneficiary in the sections that follow.
Can an Executor Sue a Beneficiary?
Executors have the right to sue a beneficiary if they have reason to believe the beneficiary engaged in misconduct to be named a beneficiary or took more from the estate than they’re entitled to. Because executors are charged with prioritizing the collective best interests of the beneficiaries, they may actually be obligated to sue a beneficiary if it appears the beneficiary’s actions harmed the estate, or reduced or eliminated other beneficiaries’ inheritances.
Perhaps a beneficiary was stealing valuable objects from the decedent’s home under the guise of caring for the decedent before they passed.
Perhaps a beneficiary exerted undue influence on the decedent to cause them to amend their will in their favor.
Perhaps a beneficiary raided the decedent’s bank accounts using a power of attorney.
These are all valid reasons for the executor suing a beneficiary.
Can an Executor Withhold Money From a Beneficiary?
An executor does not have the authority to withhold money from a beneficiary for any reason. Once an executor has completed probate and their final accounting has been approved by the court, they must provide beneficiaries with their rightful inheritance without delay.
Some executors are not seeking to withhold money from a beneficiary for a selfish or unethical reason. For example, they may be considering this course of action to keep a beneficiary who is suffering from mental illness or substance abuse disorder from squandering their inheritance. However, even if an executor is acting in good faith when withholding a distribution, they are in violation of their fiduciary duties.
Can an Executor Change the Will?
An executor is almost never entitled to unilaterally change a decedent’s will — unless the will expressly grants them this right (which most wills don’t do). If changes must be made to a will, the unanimous consent of the beneficiaries and prior court approval are typically required.
If an executor changes a will or fails to follow its terms, it’s crucial beneficiaries take legal action against the executor to either compel them to follow the will or possibly even remove and surcharge them.
Executors have a fiduciary duty to carry out the terms of a will as they’re written. If they are unable to do so because the will contains ambiguous language, they can always file a petition for instructions to seek the court’s guidance on how to interpret the ambiguities.
Can an Executor Change a Beneficiary?
Provided that an executor is rarely entitled to change a will, it should go without saying that they cannot change a beneficiary, either. In short, the beneficiaries the decedent named in their will generally will remain beneficiaries unless the portions of the will in which they appear are invalidated by a successful will contest.
It’s important to note that executors also cannot change the amount of a beneficiary’s inheritance. While debts and administration expenses can reduce or eliminate a beneficiary’s inheritance, since these costs must be paid before distributions are made, the executor cannot deprive a beneficiary of their rightful inheritance if the estate has the means to provide it to them.
Can an Executor Remove a Beneficiary?
Similar to how an executor cannot change a will or a beneficiary, they cannot remove a beneficiary.
When executors are faced with a beneficiary who is difficult, they may resort to threatening the beneficiary with removal. However, even if they make such threats, they cannot act on them without breaching their fiduciary duties and suffering the legal consequences of their breach.
Beneficiaries named in a will are generally there to stay. Therefore, they cannot be removed, no matter how burdensome or belligerent they may be.
That said, an executor can petition the court to have a beneficiary disinherited (which effectively would remove them from a will) if they have evidence to show they were engaged in misconduct.
Can an Executor Evict a Beneficiary?
If a beneficiary is residing in an estate property rent-free, the executor may have the right to initiate eviction proceedings, even if the tenant is a beneficiary of the estate.
Eviction issues may also arise in other contexts. For example, they could arise in scenarios where a member of the decedent’s family had been living with the decedent prior to their death and remained in the home after their passing. They, likewise, could arise when multiple beneficiaries stand to inherit a real property that is currently being occupied by one beneficiary.
If the person occupying a decedent’s property is entitled to the property under the decedent’s will, an eviction may not be necessary. However, if other beneficiaries are entitled to the property, or if the property needs to be sold to repay a decedent’s debts, an eviction may be required — especially if the tenant refuses to leave voluntarily.
Takeaway: Does the Executor Have the Final Say?
While it could be argued that the executor has the final say in conflicts with beneficiaries since they have control over the estate and beneficiaries don’t, the final say actually rests with the court.
An executor may not be blocked from taking the actions they wish to take, but if those actions are scrutinized and deemed to not align with the best interests of the beneficiaries, the executor could be held personally liable for their breach of fiduciary duty.
For the reasons mentioned, even if an executor can technically “override” a beneficiary, they should carefully consider whether doing so would serve the beneficiary’s best interests.
At the end of the day, executors and beneficiaries are on the same team. When deciding whether to override a beneficiary, the executor must remember this fact.
Executor and Beneficiaries FAQs
If you haven’t been able to find the answers you’re searching for, check out the frequently asked questions below. Remember, our firm is available to provide personalized legal guidance if necessary.
When a beneficiary and an executor are in conflict, it’s always best to first attempt a resolution without involving the courts. This could involve writing a formal letter outlining your concerns and potential solutions or arranging a face-to-face meeting to discuss the issues directly.
If these efforts are unsuccessful, escalating the matter to probate court by filing a petition may be necessary. In some cases, the mere filing of a petition can prompt the opposing party to agree to a resolution, helping to avoid a prolonged legal battle and the costs associated with it.
Navigating disputes between beneficiaries and executors requires a thoughtful and strategic approach. A skilled probate attorney can help you develop an effective strategy to protect your interests while working toward a favorable resolution.
Yes, a will almost always takes precedence over a beneficiary's wishes. Beneficiaries cannot alter or override the terms of a will — they are entitled only to what the will explicitly grants them.
The closest a beneficiary can come to changing a will’s outcome is by contesting it. However, will contests are only allowed on specific legal grounds, such as fraud, undue influence or lack of capacity. And, the evidence needed to contest a will is substantial.
If a will is successfully contested, it is deemed invalid, and estate assets will be distributed according to a previous valid will or, if none exists, through intestate succession laws.
Even if a beneficiary manages to overturn a will, this is not the same as “overriding” it — rather, it means the will is no longer legally enforceable.
Whether a beneficiary can override an executor depends on the circumstances of the situation. If an executor is violating a beneficiary’s rights or failing to fulfill their duties, the beneficiary may have legal grounds to challenge the executor’s actions in court.
For instance, if a beneficiary has not received any updates regarding distributions and more than a year has passed since the executor’s appointment, they have the right to request information. If the executor refuses to provide it, the beneficiary can file a petition with the court to compel the executor to disclose necessary details about the estate.
In such cases, legal intervention can help ensure the executor fulfills their obligations and protects the beneficiary’s rights.
Yes, an executor can also be a beneficiary, as long as they administer the estate fairly and do not let their personal interests create a conflict.
It’s common for will creators to appoint a family member as executor, even if that person is also inheriting from the estate. While this arrangement can be delicate, issues typically arise only if the executor uses their role to unfairly benefit themselves or those close to them at the expense of the other beneficiaries.
If an executor who is also a beneficiary is failing to act with transparency, honesty or integrity, you may have grounds to challenge them. By filing a petition with the court, you can seek their removal if they are mismanaging the estate or allowing their conflict of interest to interfere with their duties. If the court finds merit in your claim, it may grant your petition and appoint a new personal representative.
Facing executor problems with beneficiaries?
Beneficiaries can feel frustrated and powerless when they are at odds with the executor of an estate from which they stand to inherit. Many questions can arise, such as: Can an executor override a beneficiary? Can an executor sue a beneficiary? Can an executor remove a beneficiary?
Luckily, our lawyers are standing by to provide answers to all of these questions and address any other concerns you might have. Call us today to learn more.
