An executor of a deceased individual’s estate has various powers and duties to administer the estate. During estate administration, an executor may seek to sell property in the estate for different reasons, including to generate money to pay estate taxes, satisfy debts, or provide cash bequests as directed by the decedent’s will. But can an executor sell estate property in a Pennsylvania probate without the approval of the estate’s beneficiaries?
The Executor’s Legal Authority in Pennsylvania
In Pennsylvania, an executor’s powers allow them to handle all the aspects of estate administration, including gathering the decedent’s estate assets, settling the decedent’s debts, paying taxes and estate administration expenses, and distributing inheritances to heirs and beneficiaries. State law grants executors broad authority to manage an estate, including the power to liquidate (sell) assets. However, a decedent’s will can constrain or guide an executor’s exercise of authority to sell estate assets. Conversely, when a will expressly grants the executor the authority to sell assets, beneficiaries usually cannot challenge the executor’s exercise of that authority except under limited circumstances, such as when doing so would constitute a breach of the executor’s fiduciary duties.
Executor’s Fiduciary Duties
An executor owes fiduciary duties to the estate and its beneficiaries. These duties include the obligation to act prudently and in good faith, maintain loyalty to the estate, and demonstrate fairness and impartiality to all the beneficiaries. With respect to selling estate assets, an executor’s fiduciary duties require them to exercise their authority and discretion in good faith, avoid self-dealing, and obtain fair market value for the assets.
When Might You Need Beneficiary Approval?
Situations where an executor may need to seek approval from beneficiaries or the court before selling estate assets include:
- The will does not address the executor’s authority to sell property, or has ambiguous language regarding the executor’s authority
- The will expressly requires the executor to obtain beneficiary approval before selling an asset
- Some but not all beneficiaries object to a sale
- The estate owns a partial interest in property, such as a tenancy in common
- A proposed transaction involves the appearance of a conflict of interest, such as selling property to a buyer in which the executor has an interest
Common Scenarios
Some of the most frequently occurring scenarios regarding the sale of assets during estate administration include:
- When the will expressly gives the executor the authority to sell all estate assets or specific assets, an executor may do so without seeking approval from beneficiaries.
- When the will does not expressly address the executor’s authority to sell assets, and beneficiaries object to the executor’s proposed sale, the executor may need to seek court approval before selling assets. Otherwise, they could face liability to the beneficiaries.
- When the will names the executor as one of the beneficiaries, they should maintain complete transparency during the sale process to show that the transaction does not involve conflicts of interest.
When Should You Seek Legal Advice?
As an executor or beneficiary, you may need to seek legal advice about an executor’s authority to sell estate assets without first obtaining approval from beneficiaries when a decedent’s will does not expressly give the executor the right to sell assets. Executors may need legal counsel when one or more beneficiaries object to a proposed sale or assert a breach of fiduciary duty claim against the executor or when a transaction may have the appearance of a conflict of interest.
Contact an Estate Administration Lawyer Today
If you have questions about an executor’s authority to sell property in an estate, contact Silverman, Tokarsky & Forman, L.L.C., today for an initial consultation with an estate administration attorney to learn more about the powers and discretionary authority afforded to executors under Pennsylvania law and the circumstances under which an executor may sell estate assets without approval from beneficiaries.
