What Happens if the Executor Fails To Distribute Assets in California?

After someone passes away in California, the person named in the will as executor is legally obligated to initiate the probate process, gather and inventory assets, pay debts and assets, and then divide the remaining assets among beneficiaries. While in many cases this is what happens, it is not unheard of for an executor to fail to take some actions. For example, an executor may fail to distribute assets to beneficiaries. So, what happens if the executor fails to distribute assets to beneficiaries in a timely manner? We discuss this matter in the following sections of this article. Read on!

Overview of the California Probate Process

The probate process in California involves several steps, including;

• Filing a Petition for Probate
• Gathering and inventorying estate assets
• Notifying beneficiaries and creditors
• Paying debts and taxes
• Distributing remaining estate assets

However, probate is not necessary for all estates. It is only necessary for estates exceeding a certain threshold.

According to California law, a decedent’s estate assets can only be distributed after the court has authorized it. Usually, this happens after the executor files a final account and petition for distribution. This petition or a verified report on the status of the estate must be filed within a year after Letters are issued or one and a half years if a federal estate tax return is required. If there are unnecessary delays beyond this timeframe, it could be seen as a breach of fiduciary duty.

Legitimate Causes of Delays

Sometimes, issues arise that are beyond the executor’s control and cause delays in inheritance distribution. Common genuine reasons for delays include;

• Ongoing legal disputes
• Disputes among beneficiaries
• Unresolved debts or taxes
• Complex assets

However, in such cases, the executor is required to communicate with the beneficiaries. Failure to communicate may indicate mismanagement or negligence.

What Happens if the Executor Fails to Distribute Assets?

In California, executors have a legal obligation to act in the best interest of the estate and its beneficiaries. If an executor does or fails to do so, it can result in several legal consequences, including;

• Court order to act: Beneficiaries may file a petition in court requesting an order to force the executor to act.
• Executor removal and replacement: According to California Probate Code section 8502, an executor can be removed from office and replaced for several reasons, including wastage, embezzlement, mismanagement, fraud, negligence, and incapability. Failure to distribute assets may be valid grounds for removing an executor.
• Personal financial liability: If financial harm results due to the failure to distribute assets, the executor may be required to repay the estate or beneficiaries.

Steps To Take if There Are Delays in Asset Distribution

If you are a beneficiary waiting to receive your inheritance and you suspect the executor is causing unnecessary delays, here are the steps you can take;

• Ask for a written update on the status of the estate
• File a petition with the court to compel the executor to act
• Request a removal and replacement of the executor
• Speak to an experienced probate attorney

As an executor, here are some steps you can take to prevent problems;

• Understand the probate timeline
• Keep communication open with beneficiaries
• Provide regular written updates on probate progress

Contact Us for Legal Help

For legal help, contact the dedicated California probate attorney, Robert L. Cohen – The Probate Guy – today to schedule a telephonic consultation.

Southern California Probate Lawyer Serving Orange, Riverside, Anaheim, Whittier & Beyond.

Source:

lameda.courts.ca.gov/divisions/probate/property-transfers/closing-and-distributing-estate#:~:text=A%20final%20account,return%20is%20required).