The Accountability That Comes With Broad Power
Broad authority over estate assets comes with a serious duty. A personal representative who uses their position improperly faces personal liability. This means anyone with an interest in the estate can hold them accountable.
If the exercise of power concerning the estate is improper, the personal representative is liable to interested persons for damage or loss resulting from breach of his fiduciary duty to the same extent as a trustee of an express trust.
A.R.S. § 14-3712The comparison to a trustee is significant. Trustees face one of the highest standards of care in the law. They cannot self-deal or favor one beneficiary over another without reason.
The same rules apply to a personal representative. They must follow the terms of the governing document and act in good faith.
Protection for People Who Deal With the Estate
This statute also covers buyers, lenders, and other third parties. A.R.S. 14-3713 and 14-3714 protect people who deal with the estate in good faith.
This means the representative may face liability for a bad decision. However, a good-faith buyer does not automatically lose the property they purchased. The law protects both sides.
What Families Should Know
Mismanaging estate assets is grounds for a claim. Taking estate funds for personal use also qualifies. Courts take these matters seriously because the fiduciary standard protects families.