Can the executor of an unsettled estate 'borrow' money from the estate?

Discussion in 'Estate Administration & Probate Court' started by SpeedPro67, May 6, 2010.

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  1. SpeedPro67

    SpeedPro67 Law Topic Starter New Member

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    My father died several years ago with no will, and my brother was appointed executor of the estate. In retrospect, that might not have been a good decision on my or my sister's part, since things are still not completely finalized yet. My brother has been dragging his feet on getting things finalized (needed paperwork forwarded to the lawyer), and I just found out why.

    He just told me that he borrowed what he considered to be his portion of the estate from the estate to prevent a foreclosure on his house...a fairly substantial amount. He said he'd hoped to get it replaced but has been unable to do so, and that he's putting together a spreadsheet to show us and the lawyer what the borrowed money was used for.

    Pardon my legal ignorance, but wouldn't this be considered embezzlement? Once the lawyer receives paperwork that shows money missing from the estate, wouldn't he be obligated to alert (state?) authorities about it? And who would get to decide whether charges should be filed against my brother? Is it up to my sister and I or is this decision out of our hands?

    And what would happen next? If charges are filed, would my sister or I then be asked to take over as executor? And if charges are filed, does this mean that the estate still cannot be settled until the money my brother took has been paid back? What if he is unable to do so? What happens to the balance of the estate?
     
  2. army judge

    army judge Super Moderator

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    What is an executor supposed to do?
    The following excerpt briefly describes the duties of an executor.
    One of those duties is to judiciously administer and PROTECT the assets of the estate.

    Your brother has STOLEN, not borrowed the assets of the decedent, your beloved father.

    That is a breech of his fiduciary duty.
    If I were you, I'd speak to the local District Attorney or Prosecutor tomorrow.
    How he spent it isn't the issue.
    The funds have been misappropriated by your thieving brother.
    It may be theft, embezzlement, misappropriation of funds; whatever it is, its a felony!
    You'll never get that money back.
    The estate may be deep in debt with unpaid back taxes.
    This crook must be stopped.
    He needs to be prosecuted.
    Tell the prosecutor and let the authorities decide.
    Don't feel sorry for him.
    He felt nothing for either of you or his father.
    No telling how much he has stolen, without an audit.





     
    Last edited: May 6, 2010
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