An executor of a will has legal authority to manage and distribute the deceased person’s estate, but there are certain things they cannot do. Some key limitations include:
- Act outside the will’s instructions: Executors must follow the will’s instructions strictly. They cannot distribute assets or make decisions contrary to what the will specifies.
- Benefit personally: An executor cannot use estate assets for their personal gain unless the will explicitly allows compensation. Misusing funds can result in legal action for breach of fiduciary duty.
- Ignore creditor claims: Executors must settle all legitimate debts and obligations of the estate before distributing assets. They cannot disregard creditors or distribute the estate before debts are paid.
- Distribute assets prematurely: Executors cannot distribute assets to beneficiaries before settling debts, taxes, and expenses. Doing so can make them personally liable if there are insufficient funds to cover the estate’s obligations.
- Favor certain beneficiaries: Executors must act impartially and cannot give preferential treatment to any beneficiary. They must follow the will’s distribution plan fairly.
- Alter the will: An executor cannot change the will’s terms or make decisions that go against the deceased’s stated wishes, even if they believe a different approach would be better.
- Sell property without authority: Unless granted permission by the will or by the court, executors cannot sell estate property as they see fit. They may need to get approval from beneficiaries or the court.
- Neglect taxes: Executors must file final income tax returns and pay any estate taxes due. Failing to do so can result in penalties and personal liability for unpaid taxes.
An executor is expected to act in the best interest of the estate and its beneficiaries, always in compliance with the law and the terms of the will.
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