What Are the Common Causes of Breach of Contract Disputes in Estate Matters?
Estate matters are often emotionally charged, especially when someone passes away and leaves behind business agreements, promises, or financial obligations that weren’t fully resolved.
These situations can become even more stressful when a breach of contract is involved—whether it’s about a real estate deal, a loan between family members, or a promise to leave someone an inheritance. When expectations are broken, the legal and emotional fallout can be significant.
At Bochnewich Law Offices, we assist clients throughout Palm Desert, Riverside County, Los Angeles County, San Bernardino County, Orange County, San Diego County, and all of Southern California with these difficult issues.
If you're facing a contract dispute related to a loved one’s estate, we're here to help you protect your rights and find a path forward. Reach out to us today to discuss your situation and how we can help resolve it with care and clarity.
What Is a Breach of Contract in an Estate Context?
A breach of contract in estate matters happens when someone fails to follow through on a legally binding agreement connected to the deceased person or their estate. These can include contracts signed before death or promises made that were never fulfilled.
While some estate-related disputes involve a contested will or unclear inheritance, breach of contract claims focus on specific, legally enforceable promises—often involving property, financial arrangements, or care agreements.
Why Contract Disputes Arise After Someone Passes Away
Contract disputes in estates usually happen because something was promised, documented, or agreed upon—then ignored or broken once the person passed away. These conflicts can involve family members, business partners, caregivers, or even the estate itself.
Several key reasons these disputes arise include:
Ambiguous agreements: If a contract wasn’t clearly written or is open to interpretation, disagreements often follow.
Unfulfilled promises: Sometimes, the deceased made promises—like transferring a property or leaving a gift—that weren’t honored in the estate plan.
Failure to distribute assets as agreed: Heirs or beneficiaries may claim they were supposed to receive something under a private agreement, but didn’t.
Improper execution or breach by another party: Executors, trustees, or other involved individuals may breach their own duties by not carrying out the terms of a valid contract.
These disputes are particularly frustrating because they often involve deep personal relationships. When legal obligations are ignored or mishandled, it can lead to long-term family conflict.
Common Types of Contracts Involved in Estate Disputes
Breach of contract cases tied to estates can take many forms. In many situations, people don’t even realize that what was agreed to counts as a contract—or that it may still be enforceable after someone dies.
Common types of agreements that may lead to disputes include:
Real estate agreements: If the deceased promised to sell or transfer property but never finalized the deal, heirs or buyers may have legal claims.
Loan agreements between family or friends: Promises to repay a loan—especially when it’s not in writing—can be contested after death.
Business contracts: If the deceased owned a business or had a partnership agreement, any outstanding contractual duties may fall to the estate.
Caregiver agreements: A promise to compensate someone (often a family member) for caring for the deceased may be enforceable even if it wasn’t formalized in a will.
Contracts to make a will or trust: These involve written promises where one person agrees to create (or not change) a will or trust in exchange for something.
Each of these agreements carries legal weight, and failing to honor them can result in legal liability for the estate—or even for surviving family members in certain cases.
Signs a Contract May Have Been Breached
After someone passes away, it’s not always clear whether a breach has occurred. In some cases, you may only discover the issue after reviewing estate documents or speaking with other parties involved.
Common indicators that a breach may have occurred include:
You were promised something that wasn’t delivered: Whether it was property, money, or a business interest, if you were told you’d receive something and didn’t, it may be worth investigating.
There’s evidence of an agreement, but it’s being ignored: Even informal documents like emails, texts, or handwritten notes may support a contract claim.
The executor or trustee refuses to follow through on known agreements: If they’re blocking or ignoring terms that were agreed upon before death, it may be a breach of duty.
Another party is trying to take what was promised to you: If someone else is claiming rights to property or assets you were contractually entitled to, legal action may be necessary.
The estate is denying responsibility for a debt or obligation: Just because someone has passed away doesn’t erase their valid legal commitments.
If any of these red flags apply to your situation, speak with an attorney who can assess whether your rights have been violated and what steps to take next.
Legal Remedies Available for Breach of Contract in Estate Matters
When a breach is found, California law offers several ways to address it. The right remedy depends on the nature of the contract and how the breach affected you or the estate.
Common legal remedies include:
Specific performance: This is when the court orders the estate (or another party) to carry out the terms of the agreement, such as transferring property or making a payment.
Monetary damages: If you suffered financial harm because the contract wasn’t honored, you may be awarded compensation.
Restitution: The court may order repayment for any benefit you provided under the agreement, especially in cases involving care or services.
Constructive trust: In certain cases, the court can impose a trust on wrongfully held property, requiring it to be held or transferred according to the contract.
In all cases, it’s important to act quickly—delays can affect your ability to recover what you’re owed or protect your interest in the estate.
Steps to Take If You Suspect a Breach of Contract
If you think someone has breached a contract related to a loved one’s estate, it’s essential to take action promptly and carefully.
Key steps to consider include:
Gather documentation: Look for written agreements, communications, receipts, or any other records showing what was promised or agreed to.
Review the estate plan and court filings: Sometimes, the will or trust may reference the agreement—or omit it entirely, which can also be significant.
Speak to the executor or trustee: Ask for clarification about why the agreement wasn’t honored or if they plan to address it.
Consult with an attorney: A lawyer can assess whether a valid contract exists, whether it was breached, and what your legal options are.
These early steps can help clarify your position and protect your rights before further action is needed.
What Does the Executor or Trustee Do in Breach Cases?
Executors and trustees are legally responsible for managing the estate or trust in good faith. If there’s a valid contract involving the deceased, they generally have a duty to uphold it. If they refuse or fail to act appropriately, they could be personally liable for breach of fiduciary duty.
Scenarios where an executor’s actions may lead to disputes include:
Ignoring known contracts: Failing to honor a signed agreement.
Distributing assets before resolving claims: If someone files a valid contract claim, the estate must address it before finalizing distributions.
Conflict of interest: If the executor or trustee stands to benefit from breaking the agreement, it raises legal concerns.
In these situations, the court can intervene and may remove or replace the executor if necessary. If you're dealing with this type of issue, legal help can make all the difference.
How California Courts View These Disputes
California probate courts take breach of contract claims seriously, but they require clear evidence. Oral agreements can be harder to enforce than written ones, though they’re not impossible to prove.
Courts will look at the totality of the circumstances, including witness testimony, emails, text messages, and the behavior of the parties involved.
In some cases, these disputes are handled in probate court; in others, they may be moved to civil court depending on the nature of the contract and who’s involved. Your attorney can help determine the right venue for your case.
Ways to Resolve Breach of Contract Disputes Without Going to Trial
Litigation isn’t always the only—or best—way to resolve a breach of contract. In many estate cases, alternative dispute resolution can offer a more practical and less confrontational path.
Advantages of settling out of court include:
Preserving relationships: Especially when family members are involved, resolving the issue privately can help maintain ties.
Faster resolution: Trials can take months or years, while mediation can conclude in a matter of weeks.
Lower cost: Avoiding court can significantly reduce legal fees and court costs.
More flexibility: Settlement agreements can be tailored to your needs and the unique circumstances of the case.
At Bochnewich Law Offices, we frequently help clients pursue fair settlements—while always being prepared to go to court when necessary.
Speak to a Breach of Contract Attorney
If you believe a contract tied to a loved one’s estate has been broken, don’t wait to speak with someone about your rights. These matters are often emotionally and financially important—and you don’t have to face them alone.
At Bochnewich Law Offices, we assist clients across Palm Desert, Riverside County, Los Angeles County, San Bernardino County, Orange County, San Diego County, and all of Southern California in resolving breach of contract disputes related to estates and probate. Reach out to us today to schedule a consultation.