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Executor mistakes often lead to estate litigation when duties are ignored, assets are mishandled, or beneficiaries are left in the dark. Even well-intentioned executors can face legal challenges if they fail to follow the will, court rules, or fiduciary obligations under New Jersey law. When you are serving as an executor, or you are a beneficiary watching the process unfold, understanding where things commonly go wrong can help prevent disputes before they escalate.
Failing to Follow the Terms of the Will
One of the most common sources of estate disputes is an executor who does not strictly follow the instructions in the will. Executors do not have discretion to change distributions or timelines based on personal judgment or family pressure.
Problems often arise when an executor:
- Distributes assets too early
- Ignores specific bequests
- Treats informal promises as legally binding
- Alters the order of distributions
When the terms of a will are clear, New Jersey courts expect them to be followed exactly. Deviations can trigger objections from beneficiaries and court intervention.
Poor Accounting and Recordkeeping
Executors are required to keep accurate records and provide a clear accounting of estate activity when requested. Missing paperwork or vague explanations often raise red flags.
Common accounting mistakes include:
- Failing to track income and expenses
- Mixing estate funds with personal accounts
- Not documenting asset sales or valuations
- Delaying or refusing to share financial information
When beneficiaries cannot see where the money went, trust erodes quickly. In New Jersey, beneficiaries have the right to demand transparency, and courts can compel a formal accounting if concerns persist.
Mismanaging Estate Assets
Executors have a duty to protect estate assets until they are distributed. This includes managing real estate, financial accounts, and personal property responsibly.
Mismanagement can involve:
- Letting property fall into disrepair
- Selling assets below fair value
- Making risky investments
- Failing to insure valuable property
Even passive inaction can cause harm. If asset value drops due to neglect or poor decisions, beneficiaries may pursue claims for financial loss.
Favoring Certain Beneficiaries
Executors must act impartially, even when family dynamics are strained. Favoring one beneficiary over another, whether intentionally or not, often leads to litigation.
This may include:
- Allowing one heir early access to property
- Paying personal debts of a beneficiary from estate funds
- Ignoring disputes between beneficiaries
- Communicating selectively rather than openly
Courts take allegations of bias seriously, especially when the executor also happens to be a beneficiary.
Missing Deadlines and Court Requirements
Estate administration in New Jersey involves court filings, tax obligations, and strict timelines. Missed deadlines can delay distributions and expose the estate to penalties.
Issues often occur when executors:
- Delay probate filings
- Miss creditor notice requirements
- Fail to file estate or inheritance tax returns
- Ignore court orders
What starts as a scheduling issue can quickly become a legal dispute if beneficiaries believe delays are intentional or harmful.
What Beneficiaries Can Do When Problems Arise
If you believe an executor is mishandling an estate, you do have options. Early action can prevent long-term damage and preserve estate value.
Beneficiaries may:
- Request informal records and explanations
- Demand a formal accounting
- Petition the court for supervision
- Seek removal of the executor in serious cases
We often see disputes resolve once expectations are clarified and responsibilities are enforced, especially when addressed early.
When Executor Mistakes Turn Into Legal Disputes
Executor errors do not always lead to litigation, but unresolved concerns often escalate. Once court proceedings begin, costs rise and family relationships may suffer lasting strain.
Addressing Issues Before They Escalate
If you are concerned about executor conduct or facing accusations in that role, early legal guidance can help protect your interests and keep matters on track. At Elton John Bozanian, Esq., we work with executors and beneficiaries throughout New Jersey to resolve estate disputes efficiently and with clarity. Contact us to discuss your situation and understand your next steps.