An executor can temporarily withhold money to pay estate debts, taxes, and administration expenses, but they cannot withhold funds to avoid distributing the inheritance or for personal gain. Wrongfully withholding funds is a breach of fiduciary duty, for which beneficiaries can seek court intervention to remove the executor.
There are a number of consequences to executors withholding money from a beneficiary, such as: Financial consequences – If estate funds are mis-used, the Court will order that the executor pay the money back to the estate for it then then be distributed.
They cannot, under any circumstances, actively withhold estate assets from beneficiaries or use those assets for their own benefit. Outside of the executor's power, the only time distribution of assets may be delayed is when someone contests the will.
Timeline for Settling Estates in California
The courts take steps to move the process along, and the executor of an estate generally has 12 months to complete the probate process and pay heirs or beneficiaries from the estate.
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.
An executor withholding an inheritance from a beneficiary is only legal if the distribution hasn't yet come due. This typically means the final accounting and petition for final distribution have either not been filed with the court, are still pending approval or are under dispute.
As an executor, you have a fiduciary duty to the beneficiaries of the estate. That means you must manage the estate in the best interests of the beneficiaries (and not yourself), taking care with the assets. So an executor can't do anything that intentionally harms the interests of the beneficiaries.
In general, executors are expected to distribute assets within several months to a year, though larger or contested estates may take longer. Probate courts often set deadlines for filings, but final distribution typically occurs only after debts, taxes and administrative expenses are settled.
How often does the executor have to keep me informed? There's no set timescale for how often an executor should update beneficiaries, however it's good practice for everyone to agree at the start on how and when they'll keep you informed while they're administering the estate.
If you find yourself in a position where the Personal Representative simply refuses to proceed with the distribution of assets, either personal property or liquid assets, your remedy is to go to the court that appointed the Personal Representative.
Ultimately, if the Executor is not complying with his obligations, you may be able to have him or her removed as Executor. This is not a straightforward process and involves a costly application to the court.
Executors and administrators are required to account to beneficiaries and accountings typically detail the same information that would be shown in a bank statement. However, there is no firm requirement in the probate code to provide bank statements to estate beneficiaries.
Executors often delay distributions until all liabilities are fully resolved to avoid personal liability for unpaid debts. Where possible, Executors may issue interim payments to beneficiaries once the majority of assets have been collected and liabilities accounted for.
Although a will can be read aloud after someone dies, it is not protocol to read a will aloud in California. Thus, there is no official timeline for when a will is read.
The executor must follow your instructions in the will and fulfill your wishes, but they do have some power over how they complete probate. Continue reading this guide to learn more about executors, what their duties are, and how much power they have during the probate process.
Below are 9 of the most common mistakes your Independent Executor can make.
Executors could withhold money under some circumstances. These include if assets must be kept in trust for an inheritance, if there is a dispute between creditors and beneficiaries, or if the executor cannot locate a beneficiary.
Can your executor take money from the estate? The executor is not the owner of the estate, meaning they do not have rights to the assets within the estate. They are however permitted to be paid for their duties. This does not mean they are free to take whatever sum of money they wish from the estate account.
However, an executor does not have the legal authority to decide “who gets what.” The governing document is the will, not the executor's personal judgment.