Jan 26, 2017 · MCR 5.117 (A) provides, “An attorney filing an appearance on behalf of a fiduciary shall represent the fiduciary.”. The plain language of this court rule is clear that an attorney appearing in the probate court on behalf a fiduciary represents the fiduciary, rather than the estate. The Court went on to rule, “Therefore, we conclude that ...
The attorney represents the Executor of the Estate. Having said that, the Executor does have a duty of disclosure (among other duties) to the Beneficiaries. Having said that - and to answer your questions above - there are a few ways you can force the Executor to Account for everything.
Jul 29, 2013 · The attorney represents the estate and the executor. He has a fiduciary duty to act in the best interest of the estate, but does not represent the beneficiaries. Given the number of questions you have about estate administration and disposition of the co-op, you would be well-served by a consultation with your own probate attorney.
As such, a power of attorney is also significantly cheaper in terms of court costs and attorney fees. On a similar note, serving as an incapacitated adult’s attorney-in-fact is much easier than serving as a conservator. An attorney-in-fact has no obligation to report their activities to the court, while a conservator will be required to ...
Ms. Reed offers a good answer. The attorney represents the executor and will be acting to protect the executor's interests (to keep beneficiaries from suing, etc.). If beneficiaries have questions or need advice it is advisable to have a separate attorney ...
First, the attorney does not represent the beneficiaries. Sometimes, this is okay because the intersts of the beneficiaries are the same. Here, your interests are not the same. You should consult with your own lawyer. There are options, such as an intermediate distribution, compelling an accounting, reaching a voluntary agreement and many more.#N#More
When an adult becomes mentally incapacitated and he or she doesn’t have a power of attorney, the court will need to appoint a conservator to handle their affairs. If the incapacitated adult only needs assistance with their finances, the appointed agent is known as a conservator of the estate.
A power of attorney is also preferable because it allows the principal to retain their decision-making abilities. The attorney-in-fact will have the authority to step in and assist, but the principal’s decisions will always trump the attorney-in-fact’s decisions as long as the principal has sufficient mental capacity. The principal also has the right to rescind their power of attorney at will. In contrast, a conservatorship strips the adult in question of the ability to make decisions for themselves, and a court-appointed conservatorship can only be terminated by a judge.
A conservatorship and a power of attorney are both viable options to provide court authorization for a family member or friend to provide the necessary care and management for an incapacitated adult. They can each accomplish similar tasks, but there are some important differences and restrictions that dictate how and when they can be used.
Conservators are held to a fiduciary standard that requires they prudently manage the incapacitated adult’s assets. A conservator will be required to submit regular accounting reports to the court and may be required to appear before a judge periodically to account for their activities.
The primary advantage of a power of attorney over a conservatorship is how easy it is to issue a power of attorney. While it usually takes less than an hour to draft, sign, and notarize a durable power of attorney, conservatorship proceedings can take months to complete. As such, a power of attorney is also significantly cheaper in terms ...
A power of attorney is a legal document that authorizes an agent (also known as the attorney-in-fact) to act on behalf of a principal (the adult who is issuing the power of attorney). A power of attorney can be temporary, but most of the time they’re meant to remain in effect until the principal passes away, ...
As such, a power of attorney is also significantly cheaper in terms of court costs and attorney fees. On a similar note, serving as an incapacitated adult’s attorney-in-fact is much easier than serving as a conservator. An attorney-in-fact has no obligation to report their activities to the court, while a conservator will be required ...
The first step (and one of the most important ones) in the process of settling an estate is getting organized . You’ll want to keep track of both your expenses and all the time you spend working on settling the estate, as you’re entitled to be compensated. You should look for a Will.
In short, an Executor generally has as long as he or she needs to settle an estate, provided all statutory deadlines are met.
If the deceased only had a Will, it’s likely the estate will have to go through what’s known as probate. What is probate? Probate is the court proceeding that validates a Will. Keep in mind, not all estates will need to go through probate - probate laws can vary significantly depending on what state you’re in and the size of the estate. If there was a Trust set up, or if the estate is very small in value, it may avoid probate all together.
The baseline number to qualify for a simplified probate can range anywhere from $20,000 to up to $150,000 or more.
The Real Estate Settlement Procedures Act (RESPA) is a Federal law that dictates how lenders operate and requires borrowers be provided with appropriate disclosures about the costs and nature of the settlement process. It also prohibits things like kickbacks and limits how escrow accounts are used. Because of its name, people often assume that RESPA applies to Estate Planning, but this is a common misconception as the topics are not really associated. However, RESPA does relate to real estate purchases and purchasing a home is one of the main triggering events for needing an Estate Plan.
After you have what’s known as the Letters of Administration (which are granted by the courts and appoint one person or people authority to deal with an estate), you’ll want to set up a bank account. Use this account to collect money that may be owed to the deceased person (i.e. any final wages or insurance benefits).
There are other, practical things to do, too. If you didn’t live with the deceased and there is now an empty property, you should secure it by changing the locks. You want to take a detailed inventory of all his or her belongings. We’ll go more into detail about this below below, but you’re going to need to open a checking account that’s in the estate’s name - you’ll be paying for things like final bills, court costs, potential lawyer’s fees and more from this account.
For unmarried individuals, property and money pass to children and then to other relatives, including grandchildren, parents, grandparents, and siblings. In rare cases, someone may die who doesn’t have a will or living family members to inherit.
By making a will, you can determine which property and belongings should go to your spouse, children, family, friends, and even pets. Additionally, you can request that sums of money be given to various charitable organizations or groups.
What Is Power of Attorney? A legal term, power of attorney grants an individual known as the agent the right to act for another person, referred to as the principal. Depending on the case, a principal may appoint an agent to make decisions about their finances, legal rights, healthcare needs, or all of the above.
If you don’t currently have a will, you might want to consider speaking to an estate planning lawyer about how best to convey your final wishes to the court. Not only does making a will ensure that your property will go to the beneficiaries and heirs you choose, but it also saves your friends and loved ones from the stress of making decisions about your estate when they’re grieving. Here are some of the reasons that everyone needs a will:
Choosing an Executor. Creating a last will and testament enables you to select someone to serve as executor. This person will be responsible for distributing your money and property according to the tenants of your will after your estate has gone through probate.
In other words, you will no longer be able to use your power of attorney rights if the principal is no longer living. Institutions don’t remove the freeze until after the executor contacts them and says the estate has been resolved. At this point, property can be distributed to beneficiaries and heirs.
Power of attorney is only valid when the principal is still alive. After an individual passes, their estate representative or executor will be responsible for legal decision-making and distributing property to heirs. If the decedent failed to appoint an executor, the court will appoint one for them. In most cases, spouses and close family members are assigned the task of serving as a will’s executor.
The administrator must also advertise the estate so that any creditors of the decedent will have an opportunity to make their claims. The administrator is responsible for paying any claims made against the estate from the assets within the estate, and must pay these claims before distributing anything to the beneficiaries.
Estate administration is the process that occurs after a person dies. During this process, the decedent’s probate assets are collected, creditors are paid, and then the remaining assets are distributed to the decedent’s beneficiaries in accordance with the decedent’s will.
The administrator is sometimes referred to as an executor or personal representative. The person named as the administrator must file the will with the court and petition to open the process of probate. When the administrator’s petition is granted, the process of probate officially begins. Depending on the value of the decedent’s probate assets ...
Probate assets are all of the assets that a person owns in his or her individual name at death. A will determines the distribution of those assets. A will also names the person the decedent selected to administer the decedent’s estate.
Typically, notice must be given to all parties who have an interest in the estate.
Depending on the value of the decedent’s probate assets and the laws of the relevant state, a probate proceeding is not always required. Before submitting anything to the court, the administrator should discuss the administration of the decedent’s estate with an estate planning and probate attorney who will guide the administrator through ...
The estate administrator, also called the executor or personal representative, is usually the only person with the legal authority to manage the estate through the probate process – or at least, manage the estate after it’s been submitted to a probate court.
If the decedent left an estate plan, that plan should directly address such issues. But if it doesn’t, or if there is no plan, you’ll have to act.
This process begins when you file a document (usually called a petition or application) with the probate court in the county in which the decedent lived. The document will ask the court to open a new probate case and name an estate administrator to manage it. When you file the petition, you usually ask the court to name you as executor, but you can also ask the court to name someone else.
After you’ve transferred the body to a mortuary or similar facility, you’ll also have to begin preparing for a funeral, cremation, or burial ceremony. You can usually wait a couple of days or more before you begin making these plans, and can use that time to determine if the decedent left behind any instructions. Follow the decedent’s wishes, if you know them, or the instructions left behind in the estate planning documents. If you don’t have guidance, you’ll have to make the plans on your own, or coordinate with other family members and loved ones.
If the estate is insolvent, some of the creditors won’t get repaid, or may receive only partial payment.
Liquidation of assets is common when the estate is insolvent (has more debts than assets), when the decedent died without a will (known as dying intestate), or when the estate has a lot of personal property that isn’t directly addressed in the will and needs to be disposed of. Liquidating assets can require you to, for example, have valuable personal items appraised by an expert, or hire an estate auction or estate sale company to dispose of personal property.
Within a few days of the death or transfer to a mortuary or coroner’s office, you’ll want to contact the person who has control of the remains and request copies of the death certificate. State laws on who can obtain certified copies differ, but if a court has already named an executor or estate administrator, it will be that person’s job to obtain copies. If there is no court appointed representative, it will be up to a family member to obtain the certified copies of the certificate.
Holding the assets of the decedent in an effort to prevent creditors from reclaiming their debt is a risky proposition. Creditors have the right, after enough time passes, to petition the court to open the probate estate themselves.
The family should check with the decedent’s attorney or accountant to see if they have the original or a copy. The family should also check with the bank where the decedent maintained an account to see if one may be located in a safe deposit box.
Many people believe they don’t need to open an estate because their loved one did not have a lot of money. The mistake with this belief is that the debts and taxes of the decedent often go unpaid while assets are distributed. The family is then surprised when a creditor or the IRS shows up looking to recover their claim.
If there are insufficient assets in the estate to satisfy all the debts or tax obligations of the decedent, those debts and obligations do not become the responsibility of family and friends. Many will assume responsibility, believing it is the right thing to do, but they are not legally required to do so.
Assets need to be protected. Following the death of a loved one, there is often a period of chaos. This, coupled with grieving, presents a unique opportunity for those bent on personal benefit. It is important for the family, even before the opening of an estate, to protect all assets that belonged to the decedent.
If you have questions about the management of your loved one’s estate or the probate process, call us anytime at (888) 694-1761 to get answers.
The family should meet with an accountant to determine whether there is a need to extend any tax returns. Communicate regularly. One of the main reasons litigation ensues in estates is because there is a feeling that the executor is not communicating with the other interested parties.