Reimbursement to executor for out of pocket legal fees from estate account not allowed??

[Djwad]

Jurisdiction

New Hampshire

Quick background wife's mother died 4 years ago and the step father died 2 years ago. Her mother's will said her husband would be Executor but if dececeasd, my wife would be. He never did anything with her accounts, and did not begin probate mainly because he was sick. His stepdaughter, who was suppose to executor for his estate, but eventually the court took that away from her, She lived with him and controlled everything, but did nothing with either will or estate, which created a litany of problems. Wifes side was completely kept out of the loop.

Now that the step fathers estate has been opened and getting close to being closed, my wife got stuck being executor for her mother's estate. We understand that all money from her mother's estate will go into step father's estate, which she is a beneficiary of.
We are in NY, in laws lived in NH, and we just let the same lawyer that's handling step fathers estate, handle the mothers.
Her mother's estate is fairly small, $50k from stock, and a few other accounts wife is searching for. The $50k is finally in the estate bank account that wife recently opened. Wife already spent about $3k on lawyers fees and bond prior to selling her mother's stock and opening the estate account. This $3k was paid with our credit card. I assumed once the estate account was opened and had funds in it, wife can reimburse herself for the fees paid so far and upcoming bills from the lawyer too. Apparently, she needs court permission to be reimbursed and can't pay the current lawyer's fees from this account? This makes no sense. Since we paid upfront with a credit card, can we be reimbursed for any credit card interest too?
Essentially she got forced into being executor, had to shell out out-of-pocket money, and has to pay more upcoming fees out-of-pocket fees.
This sound ridiculous.
Right now, we are looking for advice on the quickest way to be reimbursed?
Also, how much can she bill her mother's estate for her own time handling all this?
Thank in advance.

 

[zddoodah]

Apparently, she needs court permission to be reimbursed and can't pay the current lawyer's fees from this account?

As phrased this isn't a question. If your intent was to ask if this is true, that's a question she needs to ask her lawyer.

can we be reimbursed for any credit card interest too?

Another question your wife should ask her lawyer. Why? Because the answer depends in large part on the order appointing your wife as executor and on the letters testamentary that were issued to her.

how much can she bill her mother's estate for her own time handling all this

Yet another questions she should direct to her lawyer. That said, if you google "new hampshire executor fee," this article is the first one that comes up.

 

[adjusterjack]

Apparently, she needs court permission to be reimbursed and can't pay the current lawyer's fees from this account?

Who says so?

Since we paid upfront with a credit card, can we be reimbursed for any credit card interest too?

I'm guessing not. Borrowing the money was voluntary for convenience. She could have paid out of your savings or arranged a payment plan without interest or any number of ways to avoid credit card interest.

Essentially she got forced into being executor, had to shell out out-of-pocket money, and has to pay more upcoming fees out-of-pocket fees.

Nobody forced her. She could have said no, walked away and let her mother's assets just disappear. She became executor because there was money in it for her that nobody else had any obligation to handle.

 

[Djwad]

Who says so?


I'm guessing not. Borrowing the money was voluntary for convenience. She could have paid out of your savings or arranged a payment plan without interest or any number of ways to avoid credit card interest.



Nobody forced her. She could have said no, walked away and let her mother's assets just disappear. She became executor because there was money in it for her that nobody else had any obligation to handle.

Who says so?



I'm guessing not. Borrowing the money was voluntary for convenience. She could have paid out of your savings or arranged a payment plan without interest or any number of ways to avoid credit card interest.



Nobody forced her. She could have said no, walked away and let her mother's assets just disappear. She became executor because there was money in it for her that nobody else had any obligation to handle.

Now that the stock was sold, there was money in the estate account, so she asked the lawyer and got this reply.. "Unfortunately at this time you can't pay from your mom's estate account, you can pay; likewise, you can't reimburse yourself yet as that will require court approval. Just keep track of what you've paid and then we will have to ask the Court for permission for you to reimburse yourself."
Followed by a a statement for charges for month of January.
Can we/lawyer ask the court for permission now to be reimbursed thus far and ask for any outstanding and upcoming lawyer fees be paid from the estate account?
Is that something court would normally grant, or are executors expected to pay for all legal fees upfront and wait until the end?
We weren't expecting her mother's estate to drag on as long as it has or cost as much.

If she would have said no, would the stepfathers estate be able to be settled? We were told her mother's had to be taken care of first. Since he died after, any money left in her mother's estate, goes to his estate. Fortunately, wife is one of 14 beneficiaries of his estate.

To complicate things even more, we just found out she kept getting pension checks deposited after she died into a joint account with step father. That was suppose to end the month she died, so now that money has to be payed back.
Our fear, is that this will end up being paid from that $50k from stock sales, draining all of it... And then how do we get out of pocket expenses back?

All these things regarding mothers estate were assumed to handled by stepfather and his daughter, but she did nothing.

 

[adjusterjack]

she asked the lawyer

Whose lawyer? One she hired to represent her? Or one representing her stepfather's family?

If the latter, she has the option of hiring a lawyer who will represent her interests.

Beyond that, the estates are in such a mess as to be beyond any help you can get from strangers on the internet.

 

[welkin]

Once your wife was issued letters testamentary from the probate court she can do whatever she wants to do to settle the estate according to a will or intestate without further permission from the court. So if she wants to reimburse herself for fees from the sale of stock she can.

 

[Zigner]

Once your wife was issued letters testamentary from the probate court she can do whatever she wants to do to settle the estate according to a will or intestate without further permission from the court. So if she wants to reimburse herself for fees from the sale of stock she can.

An attorney who is familiar with the matter has advised differently.

 

[Djwad]

Whose lawyer? One she hired to represent her? Or one representing her stepfather's family?

If the latter, she has the option of hiring a lawyer who will represent her interests.

Beyond that, the estates are in such a mess as to be beyond any help you can get from strangers on the internet.

It is the same lawyer handling both Estates. She hired the same lawyer for simplicity since we are in NY and the estate is in NY. This lawyer has been keeping wife in the loop regarding step-fathers estate. We are going to ask this lawyer to request permission from court to use the funds to both reimburse for legal fees we payed already, and also outstanding and upcoming fees. Her mother's estate should have been simple, 1 stock account and thats it.

 

[Djwad]

Once your wife was issued letters testamentary from the probate court she can do whatever she wants to do to settle the estate according to a will or intestate without further permission from the court. So if she wants to reimburse herself for fees from the sale of stock she can.

This seems like the most common sense thing I have heard and figured it would play out like this. She was approved to be Executor, and opened up the estates, bank, account. This allowed her to sell stock and deposit check. Now that the estate has money, common sense says the lawyers fees be paid from estate account. She obviously was allowed to sell the stock and open an estate account. Why not pay off estate legal bills too and be reimbursed for court costs and legal fees thus far ... Otherwise whats the point of having an executor.

 

[Zigner]

This seems like the most common sense thing I have heard and figured it would play out like this.

Of course it does...because it's the answer you wanted to hear.

The FACT is that your wife hire an attorney to assist, so your wife should be listening to that attorney and not random strangers making guesses on the internet.

 

[Djwad]

Of course it does...because it's the answer you wanted to hear.

The FACT is that your wife hire an attorney to assist, so your wife should be listening to that attorney and not random strangers making guesses on the internet.

I assumed that this forum would offer advice when asking questions or atleast confirming what the hired attorney says. Kinda of the point of having forum on a website called thelaw, don't ya think. When you go to car repair forums, ask about car repairs, and get a response like just talk to your mechanic, then why bother with having forum.

The FACT is that there are more than one way of handling something, and getting advice from others that have been through similar situations or have a good understanding of NH Estate laws and procedures are what these type of forums are good for... or so I thought. This advice and discussions will help being prepared when speaking to the hired attorney, especially which questions to ask and which route to go. Especially if the hired attorney is being paid by the hour.

 

[justblue]

I assumed that this forum would offer advice when asking questions or atleast confirming what the hired attorney says. Kinda of the point of having forum on a website called thelaw, don't ya think. When you go to car repair forums, ask about car repairs, and get a response like just talk to your mechanic, then why bother with having forum.

The FACT is that there are more than one way of handling something, and getting advice from others that have been through similar situations or have a good understanding of NH Estate laws and procedures are what these type of forums are good for... or so I thought. This advice and discussions will help being prepared when speaking to the hired attorney, especially which questions to ask and which route to go. Especially if the hired attorney is being paid by the hour.

Not everyone that volunteers on this site is an attorney. Ask welkin if they are a New Hampshire attorney.. Read the terms of this site.

 

[Djwad]

Not everyone that volunteers on this site is an attorney. Ask welkin if they are a New Hampshire attorney.. Read the terms of this site.

I wouldn't expect that every response posted come from an attorney let alone a NH attorney. I wasn't looking for specific advice that I would use to file court documents myself, thats what the paid attorney is for. Forums are usually good ways to discuss options on whatever the matter may be. If this a a forum designed for just lawyers to ask and answer questions terrific. If the resonses are along the lines of "talk to your lawyer" then again, I misunderstood the point of this forum.

 

[welkin]

An attorney who is familiar with the matter has advised differently.

Many attorneys will say anything to keep billing you.

What do you think letters testamentary are for? It gives the executor or executrix the legal authority to settle the estate as they see fit. Until the estate is settled according to a will or intestate succession, or until there is some challenge to the actions of executor, there should be no reason for court approval of any actions taken.

 

[Zigner]

What do you think letters testamentary are for? It gives the executor or executrix the legal authority to settle the estate as they see fit. Until the estate is settled according to a will or intestate succession, or until there is some challenge to the actions of executor, there should be no reason for court approval of any actions taken.

I understand how things generally work, but in this specific situation, the estate attorney is advising differently.

 

[zddoodah]

I assumed that this forum would offer advice when asking questions or atleast confirming what the hired attorney says.

With regard to advice, please review the disclaimer at the bottom of each page at this site: "The people providing legal help and who respond are volunteers who may not be lawyers, legal professionals or have any legal training or experience. The law is also subject to change from time to time and legal statutes and regulations vary between states. It is possible that the law may not apply to you and may have changed from the time a post was made. All information available on our site is available on an "AS-IS" basis. It is not a substitute for professional legal assistance."

The fact is that the majority of folks who respond here regularly are not lawyers. Nor is anyone who responds here regularly admitted to practice in New Hampshire. Most importantly, no one here has seen the orders appointing your wife as executor of the two estates, and no one here knows the relevant facts better than your wife's lawyer. As I explained in my prior response, your questions are unanswerable without reviewing those orders.

However, you've obviously latched onto what a non-attorney who is notorious around here for providing bad information has said because it's what you want to hear. That being the case, all I can do is wish you well.