QUESTION
Who is liable for the taxes and the lawyer fees in a will estate distribution?
Asked on Apr 14th, 2014 on Estate Planning - California
More details to this question:
The executor hires a lawyer and pays all taxes to the state. The amount is not broken down the hires. One person gets 20k, another gets a car, another one gets some personal item listed in the will, 6 grandchildren gets 1k each and I receive 1/3 of what is left then why should I pay for all those taxes. Plus why should I pay for the lawyer that she hired without my approval to hire him. I told the lawyer I would not sign the final paper unless I see what the total is and what the payout is. Who is paying the taxes and the lawyer fees because I will pay my share of the taxes that is all.
16 ANSWERS
Civil Litigation Attorney serving Ventura, CA
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The Law Office of Robert I. Long
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Unless the will provides otherwise, the general rule is that the estate pays all administrative expenses (filing fees, publication charges, probate referee fee, taxes, executor commissions, attorney fees, certification charges, postage, etc.), as well as all creditor claims, before any division or distribution.
Answered on Apr 21st, 2014 at 7:44 PM
Generally, if the estate has enough assets, the estate pays the taxes and all expenses of settling the estate, including the attorney's fee, unless the will states otherwise. By law, all bills have to be paid before the heirs get anything; if there aren't enough assets in the estate to pay the bills, the heirs may not get anything, no matter what the will states. The executor has every right to hire any professional necessary to settle the estate, including attorneys, accountants, and appraisers. The heirs have no say in the matter unless they can prove that the executor is defrauding the estate by running up an unnecessarily large tab for expenses. The executor also has to file several reports with the probate court, including a final accounting of the distribution of the assets to creditors and heirs. You can ask to see that.
Answered on Apr 16th, 2014 at 10:17 AM
Edwin K. Niles
It is the executor's job to retain the lawyer and not yours. Unless the will says otherwise, the residuary beneficiaries pay the lawyer.
Answered on Apr 15th, 2014 at 7:04 PM
Generally, the estate as a whole is liable for the taxes and attorneys fees which are paid before the estate is divided and given to the beneficiaries. The Will can change that by stating that certain gifts should bear the expenses. You should consult a probate attorney to review the documents and advise you.
Answered on Apr 15th, 2014 at 7:04 PM
Admiralty / Maritime Attorney serving Monrovia, CA
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The Law Office of Nathan Wagner
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It sounds like the executor and attorney are doing this distribution correctly. You receive 1/3 of "what is left" (which is called the residuary). The taxes and legal fees are supposed to come out of the residuary, not the specific gifts to other beneficiaries. In other words, you should get 1/3 of what is left after the taxes and fees are paid.
Answered on Apr 15th, 2014 at 7:03 PM
3 Awards
Generally the remainderman pays all expenses from the balance of the estate. Have an attorney review the Will. It sounds like it may be correct, but it should be reviewed by an attorney to be sure.
Answered on Apr 15th, 2014 at 3:30 PM
The amounts of the gifts should come from the Will. If the amounts are correct, the attorney gets paid out of the estate.
Answered on Apr 15th, 2014 at 2:52 PM
Trusts Attorney serving Sacramento, CA
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Law Office of Victor Waid
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The estate is liable for all expenses and taxes.
Answered on Apr 15th, 2014 at 1:37 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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It sounds as if to me that the executor is doing precisely what she is required to do, and you should also be aware, is able to hire counsel at the estate's expense in order to assist her. The remaining property is then distributed in accord with the will. You, as an heir, or potential heir, have very little to do with any of the decisions and are only entitled to an accounting, and the portion of the estate which was left to you, if any.
Answered on Apr 15th, 2014 at 1:36 PM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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Generally, taxes and debts are paid by the estate as a whole. It sounds like the decedent made specific bequests to certain people. Those bequest get taken care of first. If you got the residuary estate, you get what is left after all of those payments. You didn't pay the taxes, the estate did.
Answered on Apr 15th, 2014 at 1:12 PM
Commercial Attorney serving Chicago, IL
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Ashcraft & Ashcraft, Ltd.
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Administrative expenses are paid before any distribution. Taxes are an administrative expense. Attorney 'a fees are an administrative expense. The attorney's fees can be the subject of an objection. The Court can rule on the reasonableness of the fees. The specific bequests are then paid. The residuary is then divided into shares. The burden of the administrative expenses impacts the residuary unless there is specific language in the Will apportioning those expenses. That is the effect of the terms of the will and thus the intent of the testator.
Answered on Apr 15th, 2014 at 1:11 PM
Thomas Edward Gates
The Executor is required to pay all claims, attorney fees, and taxes before any distribution is made to any beneficiary.
Answered on Apr 15th, 2014 at 12:22 PM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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The ESTATE pays all administrative expenses. If anyone else makes such payments, he or she is entitled to reimbursement.
Answered on Apr 15th, 2014 at 12:21 PM
Probate Attorney serving Newport, OR
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Minor, Bandonis & Haggerty P.C.
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You should have gotten a copy of the Final Account, which would set forth how costs were paid, it would include an Affidavit of Attorney Fees showing the lawyer's bills all the detail you're looking for. If not, go to the court and ask to see the probate file on the estate. It will all be in there.
Answered on Apr 15th, 2014 at 12:18 PM
Payment for the attorney is always part of the estates debts, including your share.
Answered on Apr 15th, 2014 at 12:02 PM
2 Awards
The ESTATE pays the lawyer and taxes and both are priority payments. You have a right to see an accounting, but you do not have a right to dispute the legitimate payment of those estate debts. In the end, you will only pay your share because those payments "come off the top" and essentially out of everyone who gets a percentage's share.
Answered on Apr 15th, 2014 at 12:01 PM