Jack’s father dies. The will states that the estate is to be divided equally between Jack and his brother. The brother dies before the estate can be settled. The deceased brother’s estate goes to his wife.
Jack is the executor of his father’s estate. He knows that he must share his father’s estate with his brother’s wife.
Jack discovers that his father had $240,000 in investments with one investment firm. They have handled his father’s money well and he wishes to leave as much as possible still invested with them. The attorney for the estate says he has to move all of these investments into an estate account that is already set up at the bank.
The lawyer has been dishonest in other matters and Jack doesn’t know whether to trust him on this or not. Is there a law about having to move everything to one estate account?
IANAL, IANAEstate Manager. As always with probate questions, it depends on the laws of the state of which Jack’s father was a legal resident when he died.
As for the possibly untrustworthy attorney, Jack is advised to seek and consult other counsel. And typically, the cost incurred by the executor for such counsel can be charged to the estate. IANAL. YMMV.
Is there a provision in the will that the executor is required to use a specific attorney or an attorney from a specific firm, or does it state that the estate must be liquidated into a specific fund or a fund managed by a specific firm or individual?
If not, I’d say look for another attorney.
IANAL, YMMV, FDIC, This is not the baggage check mentioned in the Warsaw Convention, Equal Housing Opportunity, No additives in our tobacco does NOT mean a safer cigarette.
Jack should contact the investment firm and have them open up another account in the name of the estate and transfer the assets into that account. There should be no requirement that the funds be at a specific bank.
I agree (IANAL, particularly a probate lawyer, but I work with lawyers on occasion). If Jack (as executor of the estate) doesn’t trust his lawyer, he should get another one – if nothing else just to get a second opinion in order to help dispell the mistrust. If he really doesn’t trust the lawyer, I’d advise both carefully documenting everything the original lawyer says and does and getting another lawyer in secret and with the new lawyer developing a plan for relieving the old lawyer of his duties in a way that minimizes his opportunity for mischief.
Regarding this lawyer - Is Jack afraid that the attorney will take the money and spend it on BMW’s and first-class world travel (outright theft), or is he just concerned that the attorney fancies himself a good investor when he actually isn’t, and is likely to put the money into Greek bonds and failing companies?
Nothing sounds out of bounds to me. Before anything can be settled and divvyed up properly, it has to be accounted for accurately. Investments are fluid and could drastically drop in value (or rise) before things are settled, so I get why they’d want to move it to a more stable place. Due to many many factors, that account may not end up being divided 50/50 between Jack and Jack’s brother’s wife, depending on what else is included in the estate.
A question, are we positive that Jack has to share with the deceased brother’s wife? Is that stipulated in the father’s will? From what I understand, a deceased person cannot own an estate (which is why life insurance money goes directly to the benefactor and not to the estate of the deceased to be used to settle any debts). And if the deceased cannot own an estate, there is nothing to transfer to the spouse of the deceased as it was never the dead person’s to begin with. Wouldn’t the father’s will have to stipulate that the wife would recieve his share of the estate in the event that the father outlives the heir?
The father didn’t outlive the heir. The heir outlived the father, he just didn’t survive long enough for the estate to be settled. The brother’s estate is entitled to his share of his father’s estate.
I think all of your advice in this hypothetical situation is excellent. Rumor has it that a friend of mine is getting a new attorney.
Bob, I think that if I were in Jack’s shoes, I would be concerned about the sneaky attorney mishandling funds in some way. Hypothetically, there is a sizeable amount of money involved and the attorney does not have a very good reputation in this small town. Fortunately, Jack has been good at documenting everything.
The investment funds have now been switched from Jack’s father’s name to the name of the Estate with Jack as the executor. It is not where the attorney can get to it.
KneadtoKnow, from now on Jack definitely looks like Brad Pitt.
Thanks to you all for your participation and suggestions. Jack takes full responsibility for his decisions.
Maybe. Check the will. All of the ones I’ve seen around here have the clause of “if XXX dies within 30 days of me, he shall be deemed to have predeceased me” so that money doesn’t have to go through probate twice in a short period of time.