What Is Self-Dealing and Favoritism in Estate Administration?
When a loved one passes away, the administration of their estate should be handled fairly, transparently, and in accordance with Florida law. Unfortunately, disputes sometimes arise when the personal representative of the estate engages in actions that raise questions of self-dealing or favoritism.
It is important to be informed and know how various factors can affect estate administration. If you want to learn more about what these terms like favoritism and self-dealing mean, connect with a Palm Harbor estate planning lawyer.
Examples of Self-Dealing and Favoritism
In Florida, the law imposes a fiduciary duty on the personal representative. This means they must act honestly, loyally, and prudently on behalf of the estate. Self-dealing occurs when a personal representative acts in their own best interest instead of in the best interest of the estate and its beneficiaries.
Examples of self-dealing include:
- Selling estate property to themselves or to a business they own at a discounted price.
- Using estate funds for personal expenses.
- Favoring their own inheritance share over other beneficiaries.
- Investing estate assets in ventures that benefit them personally.
Even if the personal representative claims they had good intentions, such conduct may still violate their fiduciary duty and give beneficiaries grounds to challenge the transaction in probate court.
Favoritism happens when a personal representative gives preferential treatment to one beneficiary over another. While not always as blatant as self-dealing, favoritism can still cause harm and disrupt estate administration.
This could include one or more of the following:
- Distributing assets early to certain beneficiaries while delaying or withholding distributions from others.
- Valuing or appraising assets in a way that unfairly benefits one party.
- Overlooking or minimizing debts owed by favored beneficiaries.
- Allowing one heir to use estate property while denying others access.
Because the personal representative is supposed to administer the estate impartially, showing favoritism can lead to disputes, litigation, and even removal of the representative.
Consequences Under Florida Law
Florida courts take fiduciary breaches seriously. If a personal representative engages in self-dealing or favoritism, beneficiaries can file an objection in probate court. Possible outcomes include reversing improper transactions and holding the personal representative financially liable for losses to the estate. These remedies are meant to ensure estates are managed fairly.
Ultimately, estate administration should reflect the decedent’s wishes, not the personal interests of the representative. By understanding and addressing self-dealing and favoritism, families can protect inheritances and uphold fairness during a difficult time.
If you suspect that an estate is being mishandled, speaking with a Palm Harbor estate planning lawyer is crucial. An attorney can review estate records to identify misconduct, file objections in probate court on behalf of beneficiaries, and seek removal of an untrustworthy personal representative if necessary. They can also provide guidance to personal representatives who want to avoid accidental breaches.
Who is providing you with guidance as you move through an estate distribution process? Families in Palm Harbor, FL, or Pinellas County, FL, can lean on the expertise of the attorneys at Miaoulis Law. Schedule a confidential consultation today.
