What Happens If a Florida Executor Mismanages Estate Funds?

Beneficiaries expect estate assets to be handled carefully when a loved one passes away. Unfortunately, mismanagement of estate funds does occur, and when it does, Florida probate law provides clear remedies to protect beneficiaries. If you suspect an executor is mishandling estate assets in Pompano Beach or elsewhere in Florida, connect with a Pompano Beach estate litigation lawyer.

Executor Duties and Surcharge Actions

Under the Florida Probate Code, an executor owes fiduciary duties to the estate and its beneficiaries. These duties include safeguarding estate assets, maintaining accurate financial records, paying valid debts and taxes, and distributing assets according to the will and court orders. Executors must act prudently, avoid self-dealing, and treat all beneficiaries impartially.

Mismanagement can take many forms, such as using estate funds for personal expenses, failing to account for transactions, neglecting to collect assets owed to the estate, making risky or unauthorized investments, or unreasonably delaying distributions. Even conduct that is not intentional can still violate fiduciary obligations if it results from carelessness or inattention.

One of the primary remedies available to beneficiaries is a surcharge action. A surcharge is a court-ordered financial penalty that requires the executor to reimburse the estate for losses caused by their misconduct or negligence. This may include repayment of misused funds, lost interest, diminished asset value, or unnecessary expenses incurred due to improper administration.

To obtain a surcharge, beneficiaries generally must show that the executor breached their fiduciary duty and that the breach caused financial harm to the estate. Florida courts carefully examine bank records, accountings, receipts, and other documentation to determine whether the executor’s actions were reasonable and lawful. If the executor cannot justify the transactions, personal liability may follow.

Removal and Additional Remedies

In serious cases, the probate court may remove an executor entirely. Florida law permits removal when an executor has mismanaged estate assets, failed to comply with court orders, concealed assets, or otherwise demonstrated that they are unfit to continue serving. Conflicts of interest, dishonesty, or persistent failure to provide required accountings can also justify removal.

Removal protects the estate from further harm and allows the court to appoint a replacement executor who can complete administration properly. In some situations, the court may also require the removed executor to post a bond or take additional steps to secure estate assets during the transition.

Beyond surcharge and removal, Florida courts may impose other remedies, including compelling a formal accounting, freezing estate accounts, or issuing injunctions to prevent further misuse of funds. In extreme cases involving fraud or theft, civil litigation and potential criminal consequences may follow.

Executor misconduct cases are fact-intensive and legally complex. A Pompano Beach estate litigation lawyer can assess whether mismanagement has occurred, gather financial evidence, and pursue appropriate remedies in probate court.

Want to hold an executor accountable? Talk to the estate attorneys at Mark R. Manceri, P.A. Prompt legal action can help preserve estate assets and ensure beneficiaries receive what Florida law and the decedent’s wishes intended. Schedule a confidential consultation today.