“The executor has failed to carry out my father’s wishes and has exhausted estate resources, which include tapping into the proceeds from the sale of my childhood home.” (The subject of the photo is a model). – Getty Images/iStockphoto
My father passed away in January 2022. In June 2022, my childhood home in New Jersey was sold and I was due to receive 20% of my father’s 50% interest in the house. My mother retained the other 50% as part of her residual trust, which excluded me as a beneficiary.
My late father’s lawyer stated that all beneficiaries had to wait 10 months before disbursements could be made from the sale of the house. They told me that if no unknown creditors showed up during that period, they would give me my 20% share.
Since my father had no unknown creditors or debts, the attorney sent two separate letters indicating that the executor of my father’s will (my sister) wanted to expedite my disbursement and asked me to sign a release so they could send me my share of the sale of the house. After two weeks, I received a check.
Fast forward two and a half years: the executor (my sister) fired the original attorney, hired a new one, spent over $75,000 on legal fees, is not speaking to any of the beneficiaries, and failed to finalize the terms of my late father’s will, which included transferring three other designated properties to my siblings.
I am not a beneficiary of the other properties; I was only entitled to a portion of the sale of my childhood home. Still, the executor has failed to carry out my father’s wishes and has exhausted estate resources, which include tapping into the proceeds from the sale of my childhood home.
The newly appointed attorney has demanded that I return almost half of the amount I received and has filed a civil action to force me to do so. Since no new creditors have come forward and I am not a beneficiary of the other properties that caused the delay in finalizing the estate, should I return some of the proceeds?
Why I left New Jersey
Related: My daughter has $500,000 in medical school expenses. Can my wife and I afford it?
You are not responsible for the executor’s mismanagement of your father’s estate or for the legal fees incurred by your sister’s increasingly litigious behavior. – Illustration by MarketWatch
There are so many things about handling your father’s estate that suck.
First, there is a statute of limitations for challenging a will in New Jersey, which has long been far exceeded by the shenanigans with his father’s estate. Second, the executor of your father’s estate was asleep at work and/or had an unexplained change. Third, it is not your responsibility to pay back the money; It is up to the executor’s attorney to force him under the law to return the money.
This is a vortex of chaos, and the executor and his lawyer are out to catch it. You are responsible for claiming your inheritance and signing for the release of these funds, and waiting the required amount of time under your state law. You are not responsible for the executor’s mismanagement of your father’s estate and you are not responsible for any legal fees incurred by your sister’s increasingly litigious behavior.
His father’s lawyer was quite right. In New Jersey, nine months is the standard waiting period for creditors to file claims against an estate, starting from the date of the decedent’s death. Therefore, executors should wait at least this period of time before distributing any assets to beneficiaries to avoid personal liability. Often, real estate attorneys will wait a year to account for paperwork and due process.
About that pesky statute of limitations: “In New Jersey, once the proponent of a will gives notice of probate, interested parties or next of kin generally have 120 days to contest a will,” says Scura, Wigfield, Heyer, Stevens & Cammarota, a law firm that has several offices in the state. “This period allows interested parties to present objections to the validity of the will and within this period they must act promptly.
“Failure to meet the deadline will prevent the validity of the will from being challenged unless there are exceptional circumstances that justify an extension, which would normally involve demonstrating fraud, misconduct or incapacity during the probate process,” the law firm adds. “If you are a resident of another state and have an interest in a will or a potential interest, New Jersey law provides a longer period of 180 days from notification of probate to contest a will.”
From what you say, your father’s attorney did his due diligence and followed the law to the letter. The subsequent actions of his sister, the executor, make very little sense. Assuming you have the full story and/or haven’t hidden anything, this entire sorry saga strikes me as unprofessional and unprecedented, assuming the judge doesn’t dismiss this probate court case.
An executor trying to recover previous disbursements? That’s rudeness, at best, or a deliberate abandonment of your fiduciary duty, at worst. Your attorney is the best person to advise you going forward, but I wouldn’t be surprised if they suggest you file a petition with the probate court to remove your sister as executor for misconduct, endangering estate assets, mismanagement, or all of the above.
It is not necessary to prove intentional misconduct. “Beneficiaries of an estate may seek the removal of a personal representative when they have demonstrated that they cannot competently manage the estate’s affairs,” according to Martin Law Office LLC. “Particularly in scenarios where the estate contains high-value assets or a substantial amount of money, proper management of those assets is important.
“Inappropriate choices when maintaining, investing or liquidating resources may be grounds for requesting the removal of a representative from office,” adds the law firm. “If they have cost the estate money or attempted to make transactions that would decrease the value of the estate, the courts may agree that their disposal is in the best interests of the beneficiaries.”
It’s time to clip the executioner’s wings permanently.
Related: ‘My family is going through a crisis’: My mom added my brother to her mortgage. He stopped paying. How do you get it out of there?
‘I would like to know the truth’: My grandmother told me that she left me her IRA. How do I find it?
‘I’m worried about hurting feelings’: I regret hiring my brother-in-law as a financial advisor. How do I fire him?
‘He may have a spending problem’: Would it be wrong to give money to our son secretly, without telling his wife?
