It is impossible to definitively say what the cost of removing an executor of an estate would be, as there are many factors that could play a role in how much such a case will cost. For example, the cost of removing an executor may depend on how much parties are willing to spend to obtain the outcome they want and protect their interests, and at what stage the case resolves.
That said, the average fees for executor removal cases generally fall within the range of $20,000 to $80,000, with fees for cases that go to trial often being upwards of $100,000. Complex cases with more assets at stake can cause fees to multiply.
Suppose you are seeking to remove an executor who is presiding over an estate worth tens of millions of dollars. This may cost more than removing an executor who is presiding over an estate worth hundreds of thousands of dollars, since the executor in the former example may have engaged in more transactions surrounding the estate due to its size, which your attorneys will need to investigate. In such a case, the parties may also simply be willing to spend more on litigation because there tends to be more at stake when large estates are being litigated.
Suppose you submit an application for removal of an executor, prompting the executor to seek a compromise with the beneficiaries in the form of a settlement. This may cost less than a petition to remove an executor that is litigated in court, since the latter scenario would require substantially more time on the part of your legal team.
Suppose an executor committed numerous acts of misconduct for which substantial evidence exists. Upon learning of this evidence from the petition to remove the executor, the executor voluntarily resigns. This likely would not cost very much, since the only work your attorneys would have done on the case would have been to conduct a preliminary investigation and prepare a petition.
As you can see, there are many variables — everything from the parties’ willingness to compromise to the complexity of the case to the size of the estate — that can play a role in how much it would cost to remove an executor.
That said, it’s great you are considering the potential cost of removing an executor early in the process. Removing an executor can be expensive, so it’s important to be realistic about whether or not you can afford to do it. You may consider discussing your desire to remove the executor with the other beneficiaries, as they may wish to join your petition, which would reduce each party’s financial burden.
Remember, there are multiple ways to resolve legal disputes — some of them less expensive than others. Be honest with your attorney about your budgetary concerns, and your attorney will do their best to devise a legal strategy that falls within your budget.
If you would like an accurate cost estimate for the price of your executor misconduct case, get in touch with our knowledgeable team of probate attorneys for a free consultation.
Who Pays to Have an Executor Removed?
Unfortunately, it usually isn’t possible to know who will pay to have an executor removed until the matter has concluded. In short, your application for removal of an executor must be approved before you can seek an award of your attorney fees and costs.
When making its decision about who will pay to have the executor removed, the court will consider whether your petition to remove an executor benefited the estate. But remember, the court generally won’t consider this until after you’ve won your case.
For example, if you can prove the executor was stealing from the estate and are successful in having them removed, the court may order the estate to pay your attorney fees and costs on account of your petition potentially having thwarted further damage to the estate. This especially would be true if your petition resulted in a recovery of the stolen funds or damages. At the same time, even if you win your case to remove an executor, there is no guarantee you will be awarded your attorney fees and costs.
It’s important to keep in mind that executors can sometimes use estate funds to defend themselves if doing so would benefit the estate. That said, such a scenario is rare in fiduciary misconduct cases. The more likely scenario is the executor being held personally liable for their misconduct, resulting in them having to pay for their defense from their own pockets.
If you want to know how favorable your odds are for being awarded attorney fees and costs in an executor misconduct case, consulting with a qualified fiduciary misconduct attorney is recommended.
Who Can Seek Removal of an Executor of the Estate?
Only interested parties are entitled to seek removal of an executor of an estate. Interested parties are persons with a financial stake in the estate at issue.
Interested parties in estate matters can include, but are not limited to, estate beneficiaries, and the decedent’s rightful heirs, creditors and surviving spouse.
What Are the Grounds for Removal of an Executor?
Before asking how to remove an executor of an estate, it’s important to consider whether you have good cause for seeking their removal.
If you are seeking removal of the executor of the estate because of personal issues you are having with the executor, you may be fighting a losing battle. On the other hand, if you are seeking removal because the executor has been mismanaging the estate, you may be handed down a favorable outcome.
There are countless grounds on which an executor can be removed. To determine whether your case meets one or more of these grounds, ask the following questions:
- Are the executor’s actions financially harming the estate?
- Is the executor neglecting any of their executor responsibilities?
- Is the executor in violation of their fiduciary duties?
- Is the executor taking too long to complete estate administration?
- Is the executor prioritizing their own interests over the collective interests of the beneficiaries?
If the answer to any of the questions above is yes, it’s possible you have valid grounds for seeking removal of the executor of the estate.
Fiduciary Misconduct
Executors are a type of fiduciary. As a result, they owe an absolute duty of loyalty and care to the person(s) they represent. In other words, they are obligated to only make decisions that are in the best interests of the beneficiaries.
When an executor commits a breach of fiduciary duty, it is considered fiduciary misconduct, and it is a valid ground for removal of an executor of an estate.
Here are some examples of fiduciary misconduct among executors:
- Making risky investments using estate resources
- Favoring one beneficiary over another
- Failing to provide estate accounting to interested parties
- Withholding distributions from beneficiaries
- Disregarding the terms of the will
- Commingling their personal funds with those of the estate
- Misusing or misappropriating estate property
- Overcompensating themselves
It is important to keep in mind that an executor financially harming an estate doesn’t necessarily mean the executor breached their fiduciary duty. So long as an executor acts in good faith, they generally are not liable.
For example, if an executor invests estate funds in a low-risk stock, but the stock market crashes the following day, leading to the estate losing a considerable amount of money, the executor usually wouldn’t be held liable for the financial losses of the estate, since they had acted in good faith.
Conversely, if an executor invests estate funds in their own business venture that may or may not end up being successful, this could be considered self-dealing, which is considered fiduciary misconduct because the executor prioritized their own best interests over those of the beneficiaries. In other words, they acted in bad faith.
In the same vein, if the executor is not communicating with beneficiaries about the estate to hide their misconduct, this could be regarded as them acting in bad faith, and furthermore, could be grounds for removal.
Many people believe they can take more liberties in their role as executor if they also are a beneficiary, but this is false. For instance, an executor cannot provide themselves with their distribution sooner than the other beneficiaries or before the decedent’s creditors have been paid.
Remember, to remove an executor on the ground of fiduciary misconduct, you must be able to prove with evidence the ways in which the executor breached their duties to the beneficiaries. An attorney can help you find the evidence you need to obtain a favorable outcome.
Negligence
Executors are expected to competently perform the duties required of them. If they have doubts about their ability to competently perform these duties, they should either decline their appointment or solicit the help of third-party professionals, such as probate attorneys, real estate agents and accountants.
To put it simply, negligence doesn’t excuse an executor from being held liable for the harm they cause an estate and certainly doesn’t make them exempt from removal.
Suppose an estate that has been involved in a will dispute for several years owns a valuable real property, but the executor has never attempted to sell the property or lease it to a tenant. This may be considered negligence on the part of the executor, since the property could have been generating income for the estate but wasn’t due to the executor’s inaction. It also would be a valid ground for removal.
In the same vein, if the executor never took steps to maintain the property, resulting in disrepair, it may be considered negligence, as the executor likely will need to use even more of the estate’s resources to fix up the property in the future.
Conflicts of Interest
An executor conflict of interest refers to a situation in which an executor’s personal interests are in conflict with their formal responsibilities as an executor.
An executor having a conflict of interest isn’t inherently a problem if they are careful in striking a balance between their personal interests and their official responsibilities. On the other hand, if an executor’s conflict of interest is preventing them from fairly administering the estate, they could be removed for it.
For example, if the executor is a real estate agent who receives a commission for every sale they make, selling estate property for below market value may be considered a problematic conflict of interest.
If an executor has numerous conflicts of interest or would find it difficult to reconcile their personal interests with their responsibilities as executor, it may be preferable for them to decline their appointment or resign to prevent personal liability.
Failure to Properly Administer Estate
Every step of the estate administration process serves an important purpose, as does the order in which each step is completed. If the executor fails to complete even one step or completes steps out of order, the process could be delayed, derailed or worse. As a result, you can seek removal of an executor for failing to properly administer an estate or taking too long to do it.
Suppose the executor started distributing assets to beneficiaries before they had satisfied all the valid creditor claims that had been entered with the estate — something that should be done before any distributions are made. If there are not sufficient assets remaining in the estate to pay off all the decedent’s outstanding debts, the executor not only could have to pay off these debts from their own pockets, but they could be removed as well.
If probate has completed, but months have gone by without the executor having made final distributions to beneficiaries, this, too, would be a ground for removal, as executors cannot withhold beneficiaries’ distributions for any reason and must close an estate within 12 to 18 months of their appointment.
Though estate administration can be complex, executors are expected to understand the steps involved and the order in which they should be performed.
How to Remove an Executor of an Estate
Situations often arise where beneficiaries believe the executor is not performing their duties ethically or effectively. In such cases, it is possible to file a petition to remove the executor of the estate.
Removing an executor from their role can be a complex process that is best navigated with help from a probate attorney.
1. Consult With a Fiduciary Misconduct Attorney
Proving executor misconduct can be challenging. You may need to inspect the executor’s accountings. In addition, you may need to examine decisions they made on behalf of the estate. If you haven’t worked in finance or law, this could be difficult to do, as you may not know what to look for.
If you are seeking to have an executor removed because they’ve damaged the estate or you fear that they will, time is not on your side. Acting quickly is crucial to prevent the estate from suffering losses at the hands of the executor.
Because of these concerns, we recommend working with a skilled fiduciary misconduct attorney to not only file a petition to remove the executor of the estate, but to recover any financial losses they already brought upon the estate.
2. Gather Evidence
Without compelling evidence to prove the executor’s actions when administering the estate were wrongful, self-serving or in stark contrast to the beneficiaries’ best interests, your case will fall flat.
Regardless of whether you are seeking to remove an executor, you should maintain a file of important estate documents, as well as a log of communication between the executor and you.
On that note, whenever you make requests to the executor, it is best to do so in writing. This way, you’ll have evidence to show the court should the need arise.
If you are unsure what types of evidence would help you corroborate your claims against the executor, a probate attorney may be able to provide clarification after learning more about your case.
3. File a Petition to Remove an Executor of an Estate
The final step of the removal process is to file a petition with the probate court, providing detailed reasons and evidence for the requested removal. Most people seek out the help of a probate attorney to prepare this petition.
The court will then review the petition and set it for an evidentiary hearing where both the executor and you can present your arguments and evidence. If the court believes the executor’s removal is in the best interest of the estate and its beneficiaries, it will issue an order to remove the executor and appoint a successor.
FAQs: Removal of an Executor of the Estate
If you didn’t find the answers you were looking for above, check out our FAQs below.
How long does it take to remove an executor?
Unfortunately, removing an executor can take time, though the amount of time it takes will depend on the size and complexity of the estate, among other things.
If you have concerns about how long removing an executor would take, it is best to consult with a probate attorney who you could share the facts of your case with to obtain a more accurate estimate.
Can a co-executor be removed?
A co-executor can be removed from their role on the same grounds as a sole executor. That said, a co-executor could also be removed for acting unilaterally to make decisions or failing to cooperate with the other co-executors.
Can an executor be removed for no reason?
An executor generally cannot be removed for no reason. In most cases, the executor had been hand-selected by the decedent to administer their estate. The court generally assumes the decedent had a reason for choosing who they chose to serve. As such, it tries to uphold the decedent’s intent in situations where the executor’s continued presence would not harm the estate.
In other words, disliking an executor or having personal issues with them does not serve as valid grounds for having them removed.
Can an estate executor be removed for not cooperating with beneficiaries?
It depends what the effects of the executor’s lack of cooperation were. For example, was administration delayed because the executor refused to communicate? Were beneficiaries unable to enforce their rights because they were not provided with information surrounding the estate? Were beneficiaries in the dark about the estate’s finances because the executor failed to provide them with accounting?
In all of the situations mentioned above, the executor’s lack of cooperation could potentially serve as a ground for removal.
Having issues with an executor of an estate? This is our specialty.
Dealing with an uncooperative executor can be a nightmare. Luckily, one of our probate firm’s specialties is fiduciary misconduct claims. We know how to hold irresponsible fiduciaries accountable, and can help you obtain the outcome you desire, including having the executor removed.
Call us today to request a free consultation to learn about the specific ways we can help with your matter.
