Q: Definition of fraud
The executor intends to sell his insterest in a property to a beneficiary at Current Fair Market Value. However, because the executor has not been acting (file estate taxes, pay property taxes, etc) for many, many years, the beneficiary wants to assess the damages and possible penalties before agreeing. The executor's attorney insists and pushing. Does the executor's actions consititute fraud because he is force selling something with unknown surchages and hidden fees? Can the executor use excuses like "I did not file tax hence I do not know" to avoid fraud charge? Also, does the executor have the right to sell his interest with "current fair market value" for no work or possibly even damages to the estate and other beneficiaries?
Lawyers, want to be a Justia Connect Pro too? Learn more ›
- California
- (916) 704-3009
- View Profile
- Answered
A:
Your question touches on several important aspects of executor duties and potential fraud in California probate law.
The executor's failure to perform basic duties like filing estate taxes and paying property taxes for many years likely constitutes a breach of fiduciary duty, as executors are required to manage the estate's assets responsibly and in good faith. Attempting to sell property while knowingly concealing or failing to disclose significant tax liabilities and penalties could indeed constitute fraud, as California law requires full disclosure of material facts that could affect the property's value. The excuse of "not knowing" due to their own negligence would not protect an executor from fraud charges, as they have an affirmative duty to know and manage these obligations.
Regarding the sale itself, while executors generally have the right to sell estate property at fair market value, they must first fulfill their fiduciary duties and account for any damages their negligence has caused to the estate. You would be well-advised to request a full accounting of all potential tax liabilities, penalties, and other encumbrances before proceeding with any purchase. Consider filing a complaint with the probate court to address the executor's apparent breaches of duty and to protect your interests as a beneficiary.
1 user found this answer helpful
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.
