Executor of estate accessory after the fact

[quincy]

I don't believe OP states executor distributed funds ,,,merely that one beneficiary did a self help distribution via forgery.

That's possible - although why the sister would be reported to the police for "aiding and abetting" is a question mark.

Whatever the case, the sister cannot prevent one of the siblings from reporting her to the police with their suspicions. If the police call, she would be smart to refer questions to her attorney.

 

[HRZ]

I'm of view that executor might be smart to promptly report the forged check matter to both police and bank.

Lots of executors may be slow ..and by itself slow is an everyday event ...failure to act is a different matter.

 

[quincy]

I'm of view that executor might be smart to promptly report the forged check matter to both police and bank.

Lots of executors may be slow ..and by itself slow is an everyday event ...failure to act is a different matter.

I would certainly not recommend that for the sister before the sister speaks with an attorney in South Carolina.

 

[LdiJ]

Read the case I cited.

We do not KNOW that the sister/executor did not commit a crime. It does not appear she "aided and abetted" her brother, however, based on the little we have been provided in the way of information.

But she distributed estate funds to her brother based on checks that she knew (according to the first post) were forged. It is not a defense to say the money was due the brother anyway.

Where did you get the idea that the forged signatures came from the estate checking account? I took it that checks came in from an outside party in the name of the deceased and the brother forged the deceased signature to cash them.

 

[quincy]

Where did you get the idea that the forged signatures came from the estate checking account? I took it that checks came in from an outside party in the name of the deceased and the brother forged the deceased signature to cash them.

There was forgery, nonetheless, and the executor apparently was aware of it.

If there is a problem, the sister should speak with an attorney in her area.

 

[LdiJ]

There was forgery, nonetheless, and the executor apparently was aware of it.

If there is a problem, the sister should speak with an attorney in her area.

Yes, but once again, the executor can record the money involved in the accounting of the estate and adjust all distributions to account for the brother self helping himself to money.

 

[quincy]

Yes, but once again, the executor can record the money involved in the accounting of the estate and adjust all distributions to account for the brother self helping himself to money.

And the executor can do this without issue, huh? Where do you get that?

How would this not be a knowing participation in the breach of fiduciary duty?

 

[Rulenumber1]

Following... thank you all once again for your input!

 

[quincy]

Following... thank you all once again for your input!

The advice for your friend will be to consult with an attorney in her area. She can do that now or she can do that if the police contact her.

If she knowingly accepted forged checks from the brother and gave him cash from the estate, consulting an attorney sooner rather than later would probably be smart.

 

[LdiJ]

And the executor can do this without issue, huh? Where do you get that?

How would this not be a knowing participation in the breach of fiduciary duty?

Huh? Of course the executor can account for all funds belonging to the estate and of course the executor can distribute so that no one heir receives unjust enrichment. Pleased explain how that would result in the breach of fiduciary duty?

Seriously? "Hey guys I caught Billy Bob forging mom's signature on the security deposit and taking the funds, but I have accounted for that in the estate distribution so Billy Bob is getting xxxx less than everybody else to make up for that"

Or, as it seemed to appear in this thread. Hey guys, the estate owed Billy Bob XXX dollars because he paid for mom's funeral (or whatever other debt might be involved), but he got stupid and forged mom's name to the security deposit check instead of waiting to get repaid. I have taken that into consideration in the estate distribution so he does not end up with more than he was entitled to get.

Or is your assertion that unless the executor calls the police on Billy Bob its a breach of fiduciary duty no matter what?

 

[Rulenumber1]

Ummm.... for many years I have found Quincy quite reliable!

 

[quincy]

Ummm.... for many years I have found Quincy quite reliable!

Thanks, Rulenumber1.

LdiJ's posts have not been legally sound of late so I am not sure what is going on with her.

The sister is charged with protecting the estate's assets. All assets belong to the estate. Certain debts will need to be paid as priority debts (e.g., funeral expenses). Money owed to credit cards and the brother are not priorities. If estate funds are distributed to the brother early, the sister might find the estate funds depleted and herself responsible for paying, for example, a tax bill out of her own personal funds. Distribution to beneficiaries is last.

It is also generally required in South Carolina that family agreements be in writing (South Carolina Probate Code, SC Code Ann section 62-3-912). I don't know if the brother had a written agreement with his mother or whether this is or will be an issue at all (the siblings seem to accept that the money was owed the brother).

But I see some issues that can arise for your friend if a family member wants to cause trouble. It appears that your friend should be all right but she will want to speak to an attorney in her area if the early distribution based on forged checks is reported to the police.

 

[HRZ]

Forgery remains a CRIMINAL issue ..BTW about how big a check did nit pass via forgery ? Yes it matters as to,level of,crime involved. ...

Makes sense for executor to review actions to report criminal activity to police et al in that capacity with attorney , first, retained to represent estate and executor ...it's an estate expense for now!

Sloppy administration of estate is , per,cites by quincy, a CIVIL matter , also discuss with estate attorney.

I would NOT as executor discuss any restitution in lieu of reporting or anything with this nit wit who did it , why because it's too close to being a form of extortion ..and ZERO reason to venture into any such minefield..leave that to pros. ..

BTW I'm skeptical that nit wits brother merely threatened to report executor to police for some alledged criminal acts ...there is very likely something else he demanded executor do or not do...humor me..what was it ?

 

[Rulenumber1]

Seriously.... This over the GI Joe they got for Christmas when they were seven or eight...
That being said I'm sure there are things that she has done that he does not agree with ..
Just angry sad sad sad sad sad sad sad little boy!
I've known the family since 1982. The executor being my best friend in the whole wide world! She is only trying to do what is best for the whole package!!

 

[quincy]

Seriously.... This over the GI Joe they got for Christmas when they were seven or eight...
That being said I'm sure there are things that she has done that he does not agree with ..
Just angry sad sad sad sad sad sad sad little boy!
I've known the family since 1982. The executor being my best friend in the whole wide world! She is only trying to do what is best for the whole package!!

Being an executor of an estate can be a thankless job. It is certainly one any family member needs to consider carefully before taking on the responsibility. Family members can go sort of crazy when money and emotions mix.

A slight correction to what HRZ wrote: The case I cited was a civil action but criminal actions can arise from the mishandling of an estate, as well. And threatening to take a legal action that is legitimately available to take is not extortion.

Perhaps someone can go out and buy the brothers their own GI Joes and at least put that one old dispute to rest.