Q: Is it a breach of fiduciary duty if an estate administrator quick sells two properties for less than they are worth?
My sister is currently Administratrix of my late mother’s estate and has already committed various breaches of fiduciary duty, including requesting the estate reimburse her for debt owed by the decedent she was liable to pay as power-of-attorney and attorney-in-fact to the decedent before her death. My sister in an attempt to keep the remaining heirs from being able to seek legal counsel and hold her accountable has recently sold two properties part of the estate as a quick sale. These properties were appraised for 150 thousand and 100 thousand, respectively, and both were sold for 50 thousand a piece, well below market value. The sale of these properties were not authorized by the remaining heirs, as this information was not disclosed to us. Is this legal? Do we as heirs of the estate have grounds to seek legal counsel and have the Administratrix removed due to a breach of fiduciary duty? Also, are the lawyers hired by the Administratrix also liable for professional negligence?
You need to go over everything you just asked a question about with an attorney. I have seen a $400 home sell for $78,000 because of liens that couldn't be avoided so the new owner took on the liens. I have also see properties sell under market value because a hoarder lived in them, tenants were giant a-holes and causing issues, the structure did not have a certificate of occupancy, the property was part of a law suit.
I am not saying any of these apply to your situation, but there could be reasons for the prices or flat out theft and collusion by the executor, in which case the executor can be made to pay.
Talk to an attorney off line, do not expect random internet posts to speak to your family's specific issues.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.