Replies to This Discussion

Permalink Reply by Max on November 23, 2013 at 4:38

Yes, anything the heirs don't agree with, they can contest.  Contesting an action, value, or anything done by an Independent Executor could be as simple as asking the executor to change, or not perform the action.  The executor could comply or ignore the request and force the heir to seek the courts to decide.

A heir not happy with the valuation of assets could petition the court and challenge the values.  That heir would have to hire their own appraiser, expert professionals, and any other source to provide a realistic value on an asset they feel is over valued.   

The Judge will review your values, the estates values, and determine if anything is out of line.  If the values are high, and the estate provides records to support those values, your attorney had better show the Judge more precise records of values, and have an expert witness ready to answer questions fielded by the Judge.  Neat and precise records, along with an expert professional, could sway the Judge your way, or not.  The estate could provide equal records and experts.  This could lead to a trial and $$$$ for everyone.

The choice, to increase an estates value to increase your fee as an executor, would be hard to prove.  An executor found in court, could state that he/she has only done what's required of them, value the estate.  If the records they provide are legit, then the Judge has no choice but to use them.  A heir with his/her own professional records could persuade the Judge to make the decision himself, or put him in a position to move the decision on to a trial, or not.  No one can tell you what the courts will do.

The way I understand executor fee's;  An executor of an estate in Louisiana is entitled to 2.5% of the GROSS estates value, period.  The Will of the deceased can limit the fee completely, part of the fee, or write anything they want to about the fee.  The only problem, Louisiana Civil Code allows for an executor fee of 2.5% and if the executor decides they want that fee, Will or no Will, they can get it.

In a person's Will, they can't give someone something they don't own or have control of.  A person can "dictate their wishes" concerning any pay an executor may be due, but when it comes down to the last straw, Louisiana says an executor is due 2.5% of an estate for his services.  I know the percentages changes (lowers), as the value of the estate increases, in other states.  I haven't researched that yet in Louisiana.

Max

Permalink Reply by Thomas C. McKowen, IV on November 25, 2013 at 4:58

In Louisiana, the will can set the executor's fee (as long as it remains "reasonable").

Permalink Reply by Henry on November 22, 2013 at 13:53

Mr. McKowen is right.  These things are valued in an estate.  As this discussion shows, placing a value on mineral rights is not an easy thing, and it is open to debate.  On large estates, where there are huge estate taxes, the heirs will obviously try to low-ball the value of the mineral rights.  The government (i.e., the IRS) will obviously try to get the value to a higher number.  These things end up in the tax courts.  You can look up something called a "Tax Code Memo" and some of these can be great reading.  I haven't read any where the value of mineral rights is debated, but I've read some where the value of land is debated.  The two opposing sides can be a factor of 10 apart in how they value things.  Each side will cherry pick information to bolster their case.  Ultimately, the judge rules.

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Permalink Reply by Max on November 22, 2013 at 10:34

Cindy, you said:

We still have family functions and try to be respectful because we are brothers and sisters and that is what would make our parents happy. Hopefully we can all get through this and remain close.

I respect your family and the way you feel, but a person should also be aware of their duty to their own heirs, they should expect to receive what is rightfully theirs.

Max

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Permalink Reply by Martin on November 23, 2013 at 7:25

 There is an old saying: "You nver know anyone's character until you share an estate with them."

As I have learned to my great disappointment. 

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Permalink Reply by Joe Aldridge on November 23, 2013 at 21:00

Hey Guys,

Question: Could the scope of the executor(s) duties be limited in a will? If the will states that the executor is to settle any outstanding debts of the estate and then simply put the heirs in possession of the estate's property would that be sufficient to limit their duties? I know of one case where there were three heirs and all three agreed to sell the estates' property. The executor did that and divided the monies equally. That was a case where the executor worked with the heirs and tried to do what they wanted. I thought this was how it was supposed to work. 

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Permalink Reply by tc on November 24, 2013 at 2:10

Executors are NOT suppose to do what the heirs want, but what the deceased wanted.  I have been an unpaid executor 3 times, the drawback of having a financial background, and a big problem is that the deceased didn't want to think, talk, plan and/or update the planning for the end of their life.  Multiple heirs can all have different motives, with money & legacy being 2 popular but often conflicting motives.

As for executor pay, what is the value/compensation for calling all the credit cards and sending the documents to close accounts, try canceling somebody's password protected telephone, especially after phone companies tighten rules after the HP phone scandal, and calling London to get the value returned on a prepaid Barclay's card that you don't have the pin for.  And don't get me started with medical bills/insurance that pop up many months after death.  I have boxes of documents for each estate.

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Permalink Reply by Max on November 24, 2013 at 5:26

tc, your example is just one page in a big book.  I'm sure there were many times during your Executor duties that an heir wanted to "boot" your butt out of there and take over. 

Ah, the medical/insurance bills, accounts, and passwords. 

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Permalink Reply by Max on November 24, 2013 at 5:10

Joe, this is how most people expect the estate to be handled.  The executor weighs each heirs needs, the needs of the estate, and then communicates well enough to keep everyone happy and content.  He/she carries out their duties, completes the estate, and everyone is happy.  I would guess that most estates with results like this are smaller estates.  The biggest problem faced by such heirs would be dividing up personal belongs of their parents.  I was once told by an attorney that dividing up property/house was simple, sell everything and split the cash. 

On your question;  Executors have specific duties required of them.  Most of them learn of these duties from the estate attorney and depend on that attorney to guide them through the process. 

I don't think someone could relieve an executor of a duty in their Will just because they think it's not necessary.  A person picking requirements that they think should be "unnecessary" would stretch the fabric of the general code.  The standard has been established and changing that standard on a whim (or your Will) would weaken the Code, therefore, I would believe the code would be the last say in any matter concerning Executor's and their duties.

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