An executor of an estate has a fiduciary duty to act in the best interests of the beneficiaries. While the goal is typically to maximize the value of estate assets, circumstances may arise where a sale below prevailing market prices is deemed appropriate. For instance, an urgent need for liquidity to cover estate debts or taxes, or the presence of a rapidly deteriorating property, might justify such a sale. A court may also approve a sale below market value if all beneficiaries agree.
Balancing the need for a timely sale with the desire to obtain the highest possible price is a key challenge in estate administration. Proper documentation and justification are essential for such transactions to avoid potential legal challenges from beneficiaries. Historically, courts have provided executors with a degree of latitude in these matters, recognizing the complexities and time pressures involved in estate settlement. This power underscores the importance of selecting a responsible and knowledgeable executor.
