If a deceased loved one chose you to be the executor (personal representative) of their estate, they tasked you with critical responsibilities. Those include seeing that their assets are distributed to beneficiaries as they detailed in their will and perhaps other documents.
Even if all beneficiaries are mutual relatives of you and the deceased, you can’t assume they won’t make your job harder. Significant (or even sentimental) assets combined with complicated family dynamics can have even close relatives complaining that you aren’t doing your job properly or treating them fairly.
You may even be hearing talk of petitioning the court for your removal. While that’s certainly not pleasant to hear, it’s important to know that Hawaii law requires “cause” for removal of a personal representative.
What kinds of things provide cause for removal?
Under the law, “Cause for removal exists when removal would be in the best interests of the estate.” Specifically, that involves being able to show that the personal representative did something as serious as the following:
- They “intentionally misrepresented material facts in the proceedings leading to the appointment.”
- They have “mismanaged the estate or failed to perform any duty pertaining to the office.
- They have “become incapable of discharging the duties of the office.”
- They disregarded a court order.
If you do receive a notice of removal proceedings, it’s crucial to know what you can and cannot do while the matter is being decided. The law states that after such notice, “the personal representative shall not act except to account, to correct maladministration, or to preserve the estate.”
You may be financially and legally responsible for losses
It’s important to know that if a personal representative is removed by the court, they may still be held liable “for transactions or omissions occurring before termination.” That means even if an executor makes a mistake that causes losses to the estate, they may be required to reimburse the estate. They can even potentially face criminal charges.
Administering even a relatively small and uncomplicated estate can be a big job. One with significant and complex assets may require some guidance from financial, tax, real estate and legal professionals. Getting sound estate administration guidance early in the process can help avoid these issues and ensure that the estate is administered according to the law.