Q: The last of your elderly parents has died and you and your sister have been named executors for the estate. There is farmland, machinery, a vacation property in Arizona, vehicles, life insurance and a number of debts to settle. You realize that if you hire a lawyer, you will have to pay fees based upon the amount of the estate. Why not do this yourself?
A: There are more self-represented litigants in the courts, many of whom are fighting battles over estates. On complicated estates, where there are many beneficiaries, assets and debts, executors are wise to obtain the services of a law firm.
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The law firm represents and protects the executors. The executors have the job as trustees to handle the assets of the deceased person, paying debts and income tax and then distributing to the beneficiaries what they should receive under the terms of the will.
They have to account for every penny that has come in and been paid out from the estate. This is detailed, technical work required by law.
If the money is not handled properly and the necessary accounts have not been provided to the beneficiaries, they can and will take you to court and demand that this accounting be done.
If money is not properly accounted for, you can be sued and held personally liable.
If any debts or income tax has not been paid before you distribute the estate assets to the beneficiaries, you can be held personally liable.
In addition to making sure the assets and funds are handled properly, a lawyer can advise the executor on related legal matters such as claims of spouses or other dependants under family property and/or dependants’ relief legislation, requirements for obtaining beneficiary consents in the sale of real property and handling property that is left to beneficiaries under the age or majority.
They can be difficult to navigate and the lawyer’s guidance can prevent the executors from getting into trouble. If a mistake is made, the lawyer is insured and compensation can be obtained.
The most important role of the lawyer is to administer the estate in an orderly way. They keep the process moving, assist in communicating with the beneficiaries and answering questions, and their presence can prevent tension and conflict. It is sad to see a once happy family torn apart by conflict in the mismanagement of an estate.
Money is spent many times over fighting in court. And the biggest price of all is when loving relationships are forever destroyed.
