Calculate your Cash Advance with our Inheritance Calculator

What Is a Surcharge Action? Definition, Uses and Importance.

Jump To Section

Share This

A money judgment which the court can impose on a fiduciary if their improper acts cause losses to an estate will be paid from its assets.

An additional price or surcharge. Surcharges are additional charges that are imposed on something that is already due, like a tax on a tax. The penalty that a court can impose on a fiduciary for breaching a duty is also included in the definition.

Equitable Surcharging is a term used in the law to demonstrate to an arbitrator or judge that a certain item should be included in an account that is believed to be resolved or completed.

Importance Of Surcharge Action For Fiduciaries (Personal Representatives & Executors)

It’s important for the personal representative of an estate or trust must act solely for the benefit of beneficiaries. They owe a duty to settle and distribute property in accord with terms set out by will, efficiently if possible but also quickly—and consistent with their best interests as well! If you’re worried about being liable after mismanaging such funds then there is some good news: A “surcharge” action can be brought against them which means that any damages awarded will come directly from what they receive instead – not necessarily all at once like court fees do when someone performs errantly tasks without dunning him/her enough first.

Breach of fiduciary responsibility

A breach of fiduciary duty occurs when a principal fails to act responsibly in the best interests of a client. There are many consequences that can result from a breach of fiduciary duty. These range anywhere between reputation damage and loss or license, as well monetary penalties for corporations who have committed this crime in the past- which is why it’s important to always put your clients’ interests first. If you are a beneficiary of an inheritance than it’s important to be vigilant and make sure there is no breach of fiduciary responsibility in your probate case.

Purpose of surchage actions

Surcharge actions are a way for beneficiaries to get their losses from breaches of fiduciary duty restored. The personal representative must post a bond with the court, and if they lose then all recovered funds will go back into an estate or trust fund as opposed to being awarded directly which could potentially benefit someone else besides those who were actually entitled by law – like creditors!

« Back to Glossary Index
Search for more common probate terms
Search

Get Your Inheritance Money Now!

Our Inheritance Cash Advances help heirs receive a portion of their inheritance payout in just a few days. We then wait and are paid directly out of your share when the estate finally closes. We wait for probate so that you don’t have to. Click below and fill out our short form to receive an advance immediately.

Probate Costs
Other Probate Terms You Might Be Interested In
Heir

An heir is a person entitled to inherit the property of a decedent. An heir is a person who inherits or expects to inherit property

Read More »
Statutory Will

Statutory wills follow the standard language contained in a state wills statute. Some states have a template and format for their wills and they can

Read More »
Pecuniary

Being in charge of managing a company’s finances is an important responsibility. It affects how much money employees will be able to take home every

Read More »
Marital exemption

A tax provision that allows an unlimited amount of property of one spouse to transfer to the other upon death without incurring estate or gift

Read More »
Blocked Account

A blocked account in probate refers to cash or securities that are placed in a bank subject to withdrawal upon court order. A blocked account

Read More »
Testamentary Disposition

A will can be considered to have a testamentary disposition of property if it leaves specific items, such as money and possessions. Leaving property at

Read More »

Fill Out The Form & Get An Immediate Quote!

Choose Your Total Estate Value

$

TIP: deduct loans, administrative fees, legal fees and all other expenses

$

Select from 1% to 100%

%

Estimated Advance Amount

$0