The Executor's Duties

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jetsmell
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The Executor's Duties

Post by jetsmell » Thu May 17, 2018 1:58 pm

I have a question here in the State of Ohio. The executor is in charge of a lot of things. One is to distribute the inheritance according to the will. My question is when everything is done can the executor give themselves their part of the inheritance, and can the law firm handling the case take their share before the other beneficiaries are handed theirs. Would it be an un-ethical practice, and if they can, how long can they wait? The reason why I ask this question is not important, so please don't ask. Thank you for understanding.

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bengal22
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Re: The Executor's Duties

Post by bengal22 » Thu May 17, 2018 2:06 pm

My wife was an executor and we did it without a lawyer. Easy to do in Ohio. We did not give ourself an executor fee since it involved wife and 2 sisters. But you can give lawyers their fee and your executor fee and then do the total distribution between those named in will.
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afan
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Re: The Executor's Duties

Post by afan » Thu May 17, 2018 3:39 pm

Well, the legal fees are legitimate debts of the estate. You would have to pay them to make sure you did not give to the heirs money that was owed to someone else.
If you charge a fee as executor then you would also pay yourself under the same logic.

The heirs, including you, would get whatever division of the remaining estate was specified in the will.

I would not pay myself, as an heir, my share of the inheritance before making payouts to the other heirs. I would treat all the heirs equally in that regard.
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Gill
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Re: The Executor's Duties

Post by Gill » Thu May 17, 2018 4:13 pm

Your question hinges a bit on what "their part of the inheritance" is. It would not be unusual for their to be cash bequests in the will which would be paid before residuary interests are distributed. Also there might be specific devises such as "my car" or "my house" that could be distributed before any residuary interests are paid.

Also, it would be be usual practice for the law firm to be paid before or at the same time as the residuary interests are distributed. What would not be proper practice would be for residuary interests to be distributed at different times. In other words, if the estate is to be distributed in thirds to three residuary beneficiaries, it could be inappropriate for one third to be distributed while continuing the remainder in the estate.

In other words, much depends on the terms of the will and your facts don't give us enough to determine whether anything has been inappropriate.

Didn't you ask a similar question less than a month ago that was discussed at length?
Gill

jetsmell
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Re: The Executor's Duties

Post by jetsmell » Thu May 17, 2018 7:07 pm

" Also, it would be be usual practice for the law firm to be paid before or at the same time as the residuary interests are distributed. What would not be proper practice would be for residuary interests to be distributed at different times. In other words, if the estate is to be distributed in thirds to three residuary beneficiaries, it could be inappropriate for one third to be distributed while continuing the remainder in the estate. "


In this case only money is involved. I realize it would be inappropriate for the executor to distribute the money to themselves first and then hold out to distribute the rest to the other two beneficiaries to a much later time, but would that be illegal in Ohio, and does the lawyer have a say in that?

Gill
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Re: The Executor's Duties

Post by Gill » Thu May 17, 2018 7:26 pm

jetsmell wrote:
Thu May 17, 2018 7:07 pm
" Also, it would be be usual practice for the law firm to be paid before or at the same time as the residuary interests are distributed. What would not be proper practice would be for residuary interests to be distributed at different times. In other words, if the estate is to be distributed in thirds to three residuary beneficiaries, it could be inappropriate for one third to be distributed while continuing the remainder in the estate. "


In this case only money is involved. I realize it would be inappropriate for the executor to distribute the money to themselves first and then hold out to distribute the rest to the other two beneficiaries to a much later time, but would that be illegal in Ohio, and does the lawyer have a say in that?
It certainly could be objected to by the beneficiaries in the court supervising the estate administration. The lawyer doesn’t control the administration of the estate. That is the duty of the executor.
Gill

ETadvisor
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Re: The Executor's Duties

Post by ETadvisor » Thu May 17, 2018 7:37 pm

jetsmell wrote:
Thu May 17, 2018 1:58 pm
I have a question here in the State of Ohio. The executor is in charge of a lot of things. One is to distribute the inheritance according to the will. My question is when everything is done can the executor give themselves their part of the inheritance, and can the law firm handling the case take their share before the other beneficiaries are handed theirs. Would it be an un-ethical practice, and if they can, how long can they wait? The reason why I ask this question is not important, so please don't ask. Thank you for understanding.
Let me offer you a different perspective that may cause the executor and lawyer to adhere to making proportionate distributions. Assuming after all expense are paid the residuary beneficiaries share equally in the balance of the estate, the distributions should be made pro rata to all the beneficiaries whether made in partial amounts or full amounts. One reason for this is that the Estate is required to file a income tax return known as a 1041 commencing on date of death to taxable year end. The value of the assets at DOD are the basis and the appreciation or depreciation of the assets at date of distribution should be equally shared by the residuary beneficiaries, unless the document or state law provides otherwise. By making pro rata distributions it facilitates the preparation of the estate Form 1041. I would discuss this with the lawyer and the 1041 income tax preparer.

bayview
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Re: The Executor's Duties

Post by bayview » Thu May 17, 2018 7:38 pm

Gill wrote:
Thu May 17, 2018 4:13 pm

...Didn't you ask a similar question less than a month ago that was discussed at length?
Gill
Yep. I don’t think it was ever clarified whether the poster was the heir or the heir’s BF.

IIRC, there was a lot of drama involved.
The continuous execution of a sound strategy gives you the benefit of the strategy. That's what it's all about. --Rick Ferri

Gill
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Re: The Executor's Duties

Post by Gill » Thu May 17, 2018 7:58 pm

bayview wrote:
Thu May 17, 2018 7:38 pm
Gill wrote:
Thu May 17, 2018 4:13 pm

...Didn't you ask a similar question less than a month ago that was discussed at length?
Gill
Yep. I don’t think it was ever clarified whether the poster was the heir or the heir’s BF.

IIRC, there was a lot of drama involved.
OP seems to have acknowledged that she is the beneficiary, not a friend as originally stated. Yes, mucho drama.
Gill

jetsmell
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Re: The Executor's Duties

Post by jetsmell » Fri May 18, 2018 7:18 pm

Found out today the will distribution is finally set for this Wednesday. What kind of papers are normally signed at that time. This is in the State of Ohio. Thank's in advance.

Gill
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Re: The Executor's Duties

Post by Gill » Fri May 18, 2018 7:53 pm

jetsmell wrote:
Fri May 18, 2018 7:18 pm
Found out today the will distribution is finally set for this Wednesday. What kind of papers are normally signed at that time. This is in the State of Ohio. Thank's in advance.
You are usually asked to sign a Receipt and Release in which you acknowledge receipt of the distribution and release the executor from any further liability with respect to it. If it is the final distribution you normally also consent to the executor’s discharge.
Gill

jetsmell
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Re: The Executor's Duties

Post by jetsmell » Sat May 19, 2018 4:53 am

Gill, I would like to say a special Thank You for your advice. You appear to know what you're talking about.

Gill
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Re: The Executor's Duties

Post by Gill » Sat May 19, 2018 6:37 am

jetsmell wrote:
Sat May 19, 2018 4:53 am
Gill, I would like to say a special Thank You for your advice. You appear to know what you're talking about.
You’re very welcome. Glad I could help.
Gill

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SeeMoe
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Re: The Executor's Duties

Post by SeeMoe » Sat May 19, 2018 11:00 am

Since our lawyer is also the executor it makes no difference whom he pays first, does it now! We finally appointed the lawyer as the executor after several extended family members showed little knowledge or interest bring the executor , or began telling us how to spend our retirement monies on projects they liked. Now we are relieved of doubt and uncertainty...

SeeMoe.. :oops:
"By gnawing through a dike, even a Rat can destroy a nation ." {Edmund Burke}

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