Q. Charities as Beneficiaries There are two charities named as beneficiaries — should we be concerned? A. Charitable Organizations can be Professional Beneficiaries Modern corporate governance require charities to no longer be simply patient and grateful to receive a bequest. Many charities are now much more diligent in their review of executor performance, and less… Read More
Will Wednesday: Just in case we forget something, we are planning to hold back money from distribution until we’re more comfortable. Is this an issue?
Q. Just in case we forget something, we are planning to hold back money from distribution until we’re more comfortable. Is this an issue? A. Maybe not. Withholding money to allow for contingencies may be prudent if you can establish good grounds for doing so. Beneficiaries are not consistently patient with this practice and sometimes… Read More
Q. We put Mom’s investments and her house in our joint names. Who gets the money? A. Many individuals conclude, often incorrectly, that the ownership of joint investments or real estate holdings pass to the joint account holder automatically when ·the other account holder dies. A joint account, including ownership of property and or financial… Read More
Will Wednesday: After acting as a parent’s Enduring Power of Attorney for Property- should we be concerned if we also act as executor?
Q. After acting as a parent’s Enduring Power of Attorney for Property- should we be concerned if we also act as executor? A. Beneficiaries are often much more vigilant in examining the actions of the executor who has previously managed the financial affairs of the deceased. Some beneficiaries, including charitable organizations to which the decedent… Read More
Q. What kinds of tasks am I responsible for as executor? A. This is a brief summary of tasks pertaining to the financial aspects of your duties. There are a number of non-financial related tasks that must be performed as well. – obtaining the probated will of the decedent; – advertising for and/or notifying creditors… Read More
Q. Does my home insurance cover liabilities occurring when acting as an executor? A. No, typical home insurance covers injuries and property damage to other parties but does not cover estate administration errors that result in financial loss to other parties.
Q. Who pays when the estate gets sued? A. Traditionally, it was acceptable to use the beneficiaries’ money from the estate to defend and pay for legal actions brought against the estate during administration. Courts today are re-examining the traditional access to estate money in respect to lawsuits; they may impose restrictions or prohibit the… Read More
A. People don’t typically think about the role of executor as having a personal financial risk but nothing could be further from the truth. It’s important that people understand they are effectively pledging their own personal assets against a significant loss of estate value that is attributed to their negligence in administering the estate as… Read More
Q. Who is the executor responsible to? A. The executor is personally liable for his or her actions to the following groups or individuals: – Beneficiaries and creditors for investment losses and breaches of trust; and – Other parties, with whom the deceased may have had dealings, for contractual obligations and wrongs in law (tort… Read More
Q. What is the executor’s legal duty? A. The executor has a fiduciary duty to the parties to the estate. A fiduciary duty is a much higher standard of care and performance than is typically required in a non-fiduciary role, because it involves the management and distribution of money belonging to other parties. The required… Read More