what happens if a lawyer distributes an estate incorrectly

by Dr. Karli Satterfield 9 min read

Probate dispute – over how the estate is being distributed The person or people appointed to distribute the property, land, money and possessions of the person who died are referred to as personal representatives. It can be quite a complicated job and they can be personally liable if they get it wrong.

Full Answer

What to do if the executor does not distribute the estate?

If, for some reason, the executor does not distribute the estate, you have some options: Send a certified letter to the executor demanding distribution of the estate. Give ample time for the executor to meet your demand. If that fails, take action in the probate court that approved the appointment of the executor.

Can a lawyer represent the executor of an estate?

An attorney who’s representing the executor would have a conflict of interest representing the executor in his capacity as executor of the estate and the beneficiaries in their claim against the executor.

Can an executor make a partial distribution of an estate?

Partial Distributions of the Estate. In most states, an executor must ask for and receive an order from the court approving the disbursements from the estate to beneficiaries even if probate has been completed. The court typically won’t allow the transfer of some estate assets to some beneficiaries before the estate closes – without...

What happens if an executor refuses to provide an inventory?

If refused, there is a relatively straightforward process for obtaining a Court order so the Executor must produce an inventory and an account of the transactions of the Estate. It’s up to the probate court to appoint an administrator if one is needed. But how does the court, without guidance from a will, choose someone?

What happens if you don't act in the best interest of your estate?

If they have not acted in the best interests of the estate you may be able to apply to the court to have them removed. Even if they have distributed the estate, it may not be too late to bring a claim if you have lost out financially.

What to do if you are due to benefit but are concerned that the people administering the estate are not acting in

If you are due to benefit but are concerned that the people administering the estate are not acting in the estate’s best interests then you should take legal advice quickly. If you feel errors are being made then it is easier to intervene before the inheritance is given to the wrong people.

What happens if there is no will?

Administrator - If there was no Will, then the Intestacy Rules apply and an Administrator is appointed by the court to apply those rules. The Administrator is usually a close blood relative of the person who died.

What happens if you leave a will without money?

If a Will or the Intestacy Rules (that apply where there is no Will) leave people close to the person who died without sufficient money to get by there is a special type of claim that can be brought. They can claim for ‘reasonable financial provision'. Forged will.

How to dispute a personal representative?

If you are due to benefit under the Will or a trust created by the Will or under the Intestacy Rules, then you may have a probate dispute if you are worried that the personal representatives: 1 failed to provide adequate information to those due to benefit. 2 acted negligently in carrying out their duties. 3 have not invested the estate money appropriately. 4 are being dishonest 5 have acted unreasonably. 6 have not acted independently as they have a conflict of interest because they are also due to benefit. 7 have over-charged, taking too much money from the Estate for their services, reducing what is left to be distributed to those due to benefit.

What happens if you are due to benefit under a will?

If you are due to benefit under the Will or a trust created by the Will or under the Intestacy Rules, then you may have a probate dispute if you are worried that the personal representatives: failed to provide adequate information to those due to benefit. acted negligently in carrying out their duties.

What is the person who distributes property, land, money and possessions of the deceased called?

The person or people appointed to distribute the property, land, money and possessions of the person who died are referred to as personal representatives. It can be quite a complicated job and they can be personally liable if they get it wrong. That is why they usually instruct solicitors to act on their behalf. There are 2 types:

Filing the Will for Probate

Submitting the deceased’s will to the proper probate court is the first step in any probate process. Doing this and receiving the court’s approval is what allows the executor to act as executor in the first place.

Estate Inventory

One of the first parts of the probate process is conducting an inventory of an estate’s assets. After an executor receives authority from the probate court, he or she is in charge of collecting all the assets in the estate and giving each a valuation. This is necessary to determine several things.

Paying Debts and Taxes of the Estate

The amount of debt associated with an estate is arguably the variable that can have the biggest impact on how long the probate process takes. This is partially because creditors against the estate need time to become aware of the process and make any claims against the estate.

Factors The Probate Courts May Consider

Even if someone is nominated in a will to serve as executor, or is entitled to priority for appointment in a state statute, the court has the final say over who actually serves as the personal representative.

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What happens if an executor doesn't distribute the estate?

Finally, if an executor does not distribute the estate, he or she can face some serious penalties, such as being held in contempt of court, fined, or given a jail sentence. A civil lawsuit can also be filed against the executor in an attempt to reclaim what is rightfully yours.

What to do if executor does not distribute estate?

If, for some reason, the executor does not distribute the estate, you have some options: Send a certified letter to the executor demanding distribution of the estate. Give ample time for the executor to meet your demand. If that fails, take action in the probate court that approved the appointment of the executor.

What does the executor of an estate do?

The executor must gather and secure all of the assets of the estate. The executor must identify and pay all debts owed by the estate. After it is determined that there are sufficient funds to pay all debts, the executor can then begin the process of distributing the assets of the estate.

How long does it take to get a probate?

Also remember that completion of the probate process can take several months, and sometimes even years depending on the size of the estate.

What does a good realtor do for probate?

A good realtor that understands your probate needs can also help you maintain the property by using people in his/her network. You must take exclusive control of an estate’s cash. Do not permit another person to have access to an ATM, debit or credit card, bank account.

What is the biggest component of an estate?

Real Estate is the biggest component of the estate’s assets. Depending upon your desired outcome and goals you should know that you have options in real estate. The basic and straight forward approach is to list with a local realtor.

What is probate court?

To put it simply, probate is the process the probate court uses to make sure the deceased person’s creditors are paid through estate settlement and that anything left goes to the deceased’s beneficiaries. Unfortunately, the probate and estate settlement process can be anything but simple, depending on the size and nature ...

What to do if you are not comfortable with accounting?

If you are not comfortable with or not used to accounting and balance sheets, it makes sense to enroll a professional such as a book keeper or CPA to help you . At the time of settling the estate all numbers must align and make sense. If not, you might get objections from the heirs or maybe even a judge.

What to do if a deceased person has debts?

If the deceased’s estate has debts or the deceased owned real estate some form of probate estate administration will be needed. Preparing an accurate inventory of assets , which should only reflect assets that have actually been collected and placed under the control of the administrator or executor, is important. One must account for everything and understand where and how things will pass to the deceased’s heirs either under the Will or by intestate succession. For example, does the estate include jewelry, collections or family heirlooms to be passed on? Are there oil, gas or mineral rights or royalties that need to be disposed of?

Can you market your real estate too late?

MARKETING REAL ESTATE TOO LATE. Do not make the mistake of waiting too long to market any real estate, if you’d like to settle the estate as quickly as possible. Once you have been approved as administrator or executor of the estate, you can begin soliciting offers on the real estate.

Is probate and estate settlement simple?

Unfortunately, the probate and estate settlement process can be anything but simple, depending on the size and nature of the assets to be administered, the number of parties involved in the probate and estate settlement process, how well those parties get along, and many other factors. Complex probates and estate settlements are made all ...

What happens if the executor does not distribute the estate?

What If The Executor Does Not Distribute the Estate ? When an Executor is Issued with a Grant of Probate, they will have sworn an Oath or Statement of Truth, confirming that they will administer the estate in accordance with the law.

What does it mean when an executor refuses to distribute an estate?

The executor is refusing to commuincate and distribute the estate. If the executor is refusing to distribute the estate, then legal help should be sought. Establishing the reason for the delay should be clarified, it may simply mean that there are issues with the estate but if it is a case that the executor is simply refusing to administer ...

Why do solicitors not contact beneficiaries?

If a solicitor is appointed, typically they will not contact a beneficiary until the estate is finalised, assets have been collected and liabilities paid. The reason for this is that the estate accounts can then be prepared, and amounts clarified. You will also be supplied with a copy of the will.

What is the responsibility of the executor of an estate?

The executor of an estate has a great deal of responsibility. She must gather the deceased’s assets and safeguard them during the probate process, and she must notify the deceased’s creditors of his death so they can make claims for payment.

Why is an executor reluctant to make an early transfer?

Even if her state doesn’t require court approval for disbursements, an executor might be reluctant to make an early transfer because she runs the risk of being held personally liable if she does. If she distributes property and funds early, only to realize that the estate doesn’t have enough left ...

What is a specific bequest?

A specific bequest involves a certain item of property that's easily pinpointed – say, a car or an artwork. This bequest type has priority and might be made early if the cost of maintaining the asset drains money from the estate. A demonstrative bequest involves cash paid from a specified account or from the sale of a certain asset.

Can an executor transfer assets to beneficiaries?

The court typically won’t allow the transfer of some estate assets to some beneficiaries before the estate closes – without a very good reason.

Who has the authority to override a will?

An Executor ’s Authority. An executor has very little right to override a will or the deceased’s wishes about whom he wants to receive his property. Even courts are reluctant to overrule a will’s terms without good cause, such as if an heir successfully contests it. However, some exceptions exist.

Can an executor make a bequest before probate?

An executor can’t make such a bequest before probate closes, because she wouldn’t know the size of the residuary estate until then. Residuary bequests are often made as a percentage of what’s left.

What happens when things don't go as planned?

Here’s an example of what happens when things don’t go as planned in estate planning. A parent dies, and has left everything to his two children, with a best friend designated as the executor. The will stipulates that the executor is only to be paid fees for incurred charges.

How much commission does an executor take on a corpus?

In addition, the executor may take commissions on all “corpus,” which is all the assets controlled by the executor that’s equal to 5% on the first $200,000, 3.5% on the excess over $200,000 up to $1 million, and 2% over $1 million. The executor and the decedent can agree on additional or lesser amounts. The judge can also increase commissions upon ...

Can the executor and the decedent agree on additional or lesser amounts?

The executor and the decedent can agree on additional or lesser amounts . The judge can also increase commissions upon application by the executor or decrease the commissions upon application by a beneficiary. Another possibility is that the executor signed a fee agreement where he waived the fee.

Common Estate Planning Mistakes

What to Do About Estate Planning Errors

  • If you discover a mistake in your own estate planning documents and no one has been hurt by it, the easiest approach is to contact the lawyer who created your estate plan. Explain the problem and ask the lawyer to prepare a new document for you. If your estate planning documents are several years old, it may be time to have a lawyer prepare a new e...
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What Is Considered Legal Malpractice?

  • Legal malpractice is when lawyers are negligent in performing their jobs. There are three legal malpractice elements, and you must have all of them to win a legal malpractice lawsuit. 1. The lawyer must have a legal duty to the person filing the claim.Lawyers always have a duty to their clients, but the mistake might not be discovered until after the client is deceased. In some state…
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