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Taking legal action against an executor for unpaid estate taxes

On Behalf of | Jul 20, 2023 | Fiduciary Representation |

Navigating the complexities of estate administration can be a challenging task. In Texas, executors are bound by a fiduciary duty to act in the estate’s and its beneficiaries’ best interests. One of these duties includes paying all debts and taxes owed by the estate.

But what happens if the executor fails to fulfill this obligation? It is important to understand whether you, as a beneficiary or interested party, can sue the executor of your loved one’s Texas estate for not paying the estate’s taxes.

What if the executor fails to pay taxes?

If the executor does not pay the estate’s taxes, they could be in breach of their fiduciary duties. The Internal Revenue Service can impose penalties on the estate, which can reduce the assets available to beneficiaries.

Can you sue the executor?

If the executor’s failure to pay taxes has affected your inheritance, you can take legal action against them. You can file a lawsuit to remove them from their role or to recover damages.

Filing a lawsuit?

Before you file a lawsuit, it is wise to express your concerns directly to the executor. If this does not lead to a resolution, you may need to seek a court’s intervention.

When filing a lawsuit, you will need to prove that the executor breached their fiduciary duties and that you suffered financial harm as a result. Gather evidence such as unpaid tax notices, communication with the executor or any documents showing that the executor neglected their duties.

In Texas, you have the right to hold an executor accountable if they do not fulfill their duties. If the executor’s negligence results in financial harm to you, taking legal action may be a viable option.