Although people assigned as executors of estates in Nevada may use estate funds in a number of circumstances, the law prohibits executors from pursuing their own interests at the expense of the estate. Primarily, executors must not apply estate funds for the purpose of increasing or protecting their personal assets. Such actions would need to be self-funded by executors. Additionally, estate funds cannot be directed toward activities that would violate the interests of other estate beneficiaries.
Legitimate uses of estate funds include defending an estate from beneficiaries, possible beneficiaries or other third parties making illegitimate claims upon the estate. As long as the action represented a defense of the estate’s assets, the executor could tap the estate to pay for these expenses. An executor also has the legal ability to launch legal actions meant to enrich the estate. This could include trying to recover funds taken from an estate.
In general, executors may finance activities that support the interests of the estate as long as they do not solely benefit the executor. When executors overstep their authority and spend estate assets for their own enrichment, they could be forced to return the misappropriated funds to the estate.
A person responsible for managing an estate or who has questions about the actions of an executor may wish to consult an attorney. Legal insights about estate administration might enable a person to avoid making mistakes that result in liability. When an estate requires a defense from illegitimate claims or actions must be taken to preserve assets, an attorney may provide guidance about how to pursue such goals. In addition to developing appropriate legal strategies, an attorney may be able to negotiate resolutions to disputes or file lawsuits when private discussions fail to remedy the situation.