What happens if an executor fails to manage estate assets properly?

When an executor fails to manage estate assets properly, they may face a lawsuit from beneficiaries. This is grounded in the fiduciary duty that executors have towards the beneficiaries of the estate. Executors are responsible for managing the estate in accordance with the law and the wishes of the deceased as expressed in the will. If they breach this duty—by mismanaging funds, failing to pay debts, or not adhering to the terms of the will—the beneficiaries have the right to seek legal recourse.

Beneficiaries may claim that the executor's mismanagement has caused them financial harm or that they have not been treated fairly according to the will's provisions. Legal actions can result in the executor being held financially accountable for any losses resulting from their negligence or misconduct. In serious cases, the executor could also be removed from their position, but the process isn’t immediate and does typically require court intervention.

The other options, while they may seem plausible, do not accurately reflect the typical legal consequences for failing to manage estate assets. Collecting additional fees or losing their job does not follow straightforwardly from mismanagement, and exoneration from liability is not a typical outcome in cases where there has been mismanagement. Thus, facing a lawsuit aligns with the legal