Illinois Probate Act 755 ILCS 5/24-18: Liability for Mismanagement
An estate administrator is responsible for the management of the estate of a decedent. This may include taking control of all probate property, safeguarding it, and investing it in order to preserve them for the benefit of the legal owners of the property—the beneficiaries or heirs. Whether due to ineptitude or due to intent, there are occasions in which the actions of an administrator results in damage to an estate. Even though the authority of that administrator may be revoked, the administrator is still liable for the losses he or she caused, and the new administrator has the right to seek restitution. If you have questions about mismanagement by an estate administrator, including the requirements of Illinois Probate Act, section 24-18- Liability for mismanagement, contact a skilled Chicago estate attorney at the Law Offices of Stephen Bilkis & Associates.Bond
A surety bond is an insurance contract involving three parties: the principal (the administrator), the obligees (the estate, beneficiaries, heirs, creditors), and the surety (the company or individual who guarantees the performance of the principal). If the administrator fails to manage the estate property properly and as a result estate assets are diminished, the surety will be required to pay the estate based on the amount of the lost and the amount of the policy.
As a Chicago estate attorney will explain, the reason that administrators are required to have a bond is that administrators are responsible for managing the assets of an estate. Any mistake or mismanagement could result in a significant loss the estate, beneficiaries, heirs, and creditors. They should not bear the loss. The negligent administrator should.Amount of Bond
The amount of bond is at a minimum 1.5 times the value of the personal estate. However, the amount of bond is higher if the surety is an individual as opposed to a company. Furthermore, the court based the events that develop during the course of administration, the court has the right to increase or decrease the bond requirement.
Under Illinois Probate Act, section 24-18- Liability for mismanagement, a representative and the surety on his bond are liable to any person aggrieved because of the mismanagement of the estate committed to his care. The administrator who takes the place of the administrator who mismanaged may institute and maintain an action against the representative and the surety on his bond for all money and property which was withheld or may have been wasted, embezzled or misapplied. If you are a successor trustee or co-trustee and have concerns related to the actions of a prior administrator, contact an experienced estate attorney in Chicago.Related Statutory Provisions
- Accounting by surety on bond of representative: Illinois Probate Act, 755 ILCS 5/24-14
- Stating an account: Illinois Probate Act, 755 ILCS 5/24-15
- Citation - attachment: Illinois Probate Act, 755 ILCS 5/24-16
- Devastavit: Illinois Probate Act, 755 ILCS 5/24-17
A representative and the surety on his bond are liable to a successor representative, to a co-representative or to any person aggrieved thereby for any mismanagement of the estate committed to his care. The successor representative, the co-representative or the person so aggrieved may institute and maintain an action against the representative and the surety on his bond for all money and property which have come into his possession and are withheld or may have been wasted, embezzled or misapplied and no satisfaction made therefor.Contact the Law Offices of Stephen Bilkis & Associates
The skilled estate attorneys serving Chicago at the Law Offices of Stephen Bilkis & Associates have decades of experience representing clients in a wide range of estate matters, and understand the requirements of the Illinois Probate Act, section 24-18- Liability for mismanagement. If you have questions or concerns related to the management of an estate by an executor, or any other matter related to estate administration, estate litigation, or fiduciary responsibility, contact an attorney in our office attorneys at 855-454-5529 to schedule a free, no obligation consultation regarding your case. We serve individuals throughout Chicago.