“The executor has failed to finalize my father’s wishes and has exhausted estate resources, which include tapping into the proceeds from the sale of my childhood home.” (Photo subject 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% stake in the home. My mother retained the other 50% as part of her residuary trust, which excluded me as a beneficiary.
The attorney for my late father stated that all beneficiaries needed to wait 10 months before disbursements from the sale of the home could be released. I was told that if no unknown creditors came forward during that timeframe, that my 20% share would be released to me.
As my father had no unknown creditors or debts, the attorney sent two separate letters stating that the executor of my father’s will (my sister) wanted to expedite my disbursement and asked me to sign a release so that my portion from the sale of the home could be sent to me. 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 in legal fees, isn’t speaking to any of the beneficiaries, and failed to finalize the terms of my late father’s will, which included the transfer of three other properties designated to my siblings.
I am not a beneficiary of the other properties; I was only entitled to a portion from the sale of my childhood home. Still, the executor has failed to finalize 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 that I received and has filed a civil action to compel me to do so. Given that no new creditors have come forward and that I am not a beneficiary of the other properties that caused the delay in finalizing the estate, am I required to return any of the proceeds?
You are not responsible for the executor’s mismanagement of your father’s estate or the legal fees incurred by your sister’s increasingly litigious behavior. – MarketWatch illustration
So much about the handling of your father’s estate stinks.
Firstly, there is a statute of limitations on contesting a will in New Jersey, which has long been far exceeded by the shenanigans with your father’s estate. Secondly, the executor of your father’s estate was either asleep on the job and/or had an inexplicable volte-face. Thirdly, it’s not up to you to return the money; it’s up to the executor’s attorney to compel you under the law to return the money.
This is a vortex of chaos, and the executor and her lawyer want to suck you in. You are responsible for claiming your inheritance and for signing the release of these funds, and waiting the required amount of time under the law in your state. You are not responsible for the executor’s mismanagement of your father’s estate and you are not responsible for the legal fees incurred by your sister’s increasingly litigious behavior.
Your father’s attorney was broadly correct. 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 length of time before distributing any assets to beneficiaries to avoid personal liability. Oftentimes, estate attorneys will wait one year to account for paperwork and due process.
About that pesky statute of limitations: “In New Jersey, once notice of probate is given by the proponent of a will, interested parties or next of kin typically have 120 days to contest a will,” says Scura, Wigfield, Heyer, Stevens & Cammarota, a law firm which has several offices in the state. “This period allows interested parties to file objections to the will’s validity. You must act promptly within this timeframe.
“Missing the deadline will prevent a challenge to the will’s validity unless there are exceptional circumstances justifying an extension, which would typically involve proving fraud, misconduct or incapacity during the probate process,” the law firm adds. “If you are an out-of-state resident with an interest in a will or potential interest, New Jersey law provides a longer period of 180 days from the notice of probate to contest a will.”
From what you say, your father’s attorney did his due diligence and followed the letter of the law. The subsequent actions by your sister, the executor, make very little sense. Assuming you have the full story and/or did not hold anything back, this entire sorry saga strikes me as both unprofessional and unprecedented — assuming this case does not get thrown out of probate court by the judge.
An executor trying to claw back prior disbursements? That’s bad manners, at best, or a willful abandoning of her fiduciary duty, at worst. Your lawyer is the best person to advise you going forward, but I would not be surprised if they suggest that you file a petition with the probate court to remove your sister as executor for misconduct, endangering the estate’s assets, mismanagement or all of the above.
You don’t have to prove intentional misconduct. “Beneficiaries of an estate can ask to remove a personal representative when they have demonstrated that they cannot competently manage estate affairs,” according to the Martin Law Office LLC. “Particularly in scenarios where the estate contains high-value assets or a substantial amount of money, the proper management of those assets is important.
“Improper choices when maintaining, investing or liquidating resources can be a reason to request the removal of a representative from their role,” the law firm adds. “If they have cost the estate money or have attempted to conduct transactions that would diminish the value of the estate, the courts may agree that their removal is in the best interests of the beneficiaries.”
It’s time to clip the executor’s wings, permanently.
