It is important that the executor of an estate is chosen carefully and is a person who can unbiasedly act in the best interests of the estate. So what happens when the named executor in a will presents a conflict of interest? O.C.G.A. § 53-7-55 allows the court the discretion to deny issuance of or to revoke letters testamentary when good cause, like a conflict of interest, is shown. For examples of conflicts of interest, we will look to the cases of In re: Estate of Moriarty and In re: Estate of Farkas. In In re: Estate of Moriarty, Catherine Moriarty petitioned to be executor of the estate of her husband, Edward Moriarty. Catherine was named executor in Edward’s will. However, Edward’s daughter, Maureen Weare, filed a caveat and petitioned to have Moriarty disqualified as executor, because Catherine had a conflict of interest with her representation of the estate. Catherine was not a beneficiary under the terms of the will; however, she did maintain a joint account with Edward which she claimed was payable to her by right of survivorship (i.e. not a part of the estate). After the Court disqualified her as executor, Catherine appealed the decision, stating that… [Read More]
Atlanta Probate Lawyer: Recovering Attorney’s Fees for Actions Taken on Behalf of an Estate
For many people, the thought of the fees associated with hiring an attorney can be a stressor. However, when deciding to pursue legal action in an estate, potential clients should be aware that there is legal precedent for reimbursement of attorney’s fees from the estate’s funds. These fees can be legal fees for the normal course of events in the distribution of an estate or even legal fees as a result of contesting/removing a current personal representative. The Official Code of Georgia Annotated (OCGA) provides in §53-7-45 that “personal representatives [of an estate] are authorized to compromise, adjust, arbitrate, assign, sue or defend, abandon, or otherwise deal with or settle debts or claims in favor of or against the estate.” If the personal representative does not want to pursue a matter, they can assign the matter to a creditor or heir/beneficiary who can then pursue it on their behalf. If that person succeeds in her pursuit and thereby brings funds into the estate her attorney’s fees and expenses may be reimbursed from the estate. The case Estes v. Collum provides an example of a different kind of situation which may warrant an award of attorney’s fees. In Estes, the estate administrator was wrongfully holding property… [Read More]
Georgia Probate Attorney: Choosing the Executor of Your Estate Wisely
As an Atlanta probate attorney, I have witnessed the consequences of a poorly-chosen executor on the administration of an estate. Choosing who will be the executor of your estate is a big decision, and your executor shouldn’t be chosen based on who is your closest family member or friend but on who is qualified for the job and will be able to best administer your estate. An executor of an estate has a serious fiduciary obligation and should be chosen wisely. Executors are responsible for the timely and competent administration of an estate. Their duties include probating the will in the court which holds jurisdiction, accounting for all of the money held in the estate, paying estate taxes, and managing costs associated with funerals and other matters. Therefore, your pick for executor needs to be responsible, detail-oriented, and have a proven ability to manage money. The duties of an executor are time-consuming. The administration of an estate can sometimes take years to complete. Therefore, when choosing your executor, it’s important to choose a person who not only will be able to shoulder these responsibilities, but who also will likely live long enough to complete their responsibilities. As this Forbes article states,… [Read More]
Georgia Probate Attorney: Understanding Probate vs. Administration
In my experience as a Georgia probate attorney, I’ve noticed many people are confused by the terms “probate” and “administration” because they often are used interchangeably, even by legal professionals, but their meanings are different. The reason for the confusion likely is caused by the two most common methods for opening an estate: (1) a petition to probate a Will and (2) a petition for letters of administration. Both petitions result in the appointment of a person to manage an estate, but they are very different in nature. Probate is the process by which a Last Will and Testament is proved to the probate court. When a deceased person leaves a Will, an interested party usually will file a petition to probate the Will in the probate court in the county where the deceased resided at the time of death. Typically, the person nominated as executor in the Will does this. The petition to probate the Will is actually a request made to the court to declare the Will valid. Before the court will do so, it will notify all heirs-at-law of the deceased that the petition has been filed so that the heirs-at-law have an opportunity to review and… [Read More]
Georgia Administrators and Annual Returns – What’s in a Waiver? Part II
A Georgia estate attorney naturally is asked a lot of questions about the obligations of personal representatives. In my previous blog post, I addressed the personal representative’s obligation to file an inventory and annual returns with the probate court, the ability of the heirs or a Will to waive those obligations, and the confusion created by the applicable Georgia statutes. In this part, I explain that, despite waivers in a Will or by the heirs, the personal representative is almost always obligated to report to the heirs at least annually. As I wrote in my previous post, O.C.G.A. § 53-7-68 and 53-7-69 provide for a waiver of the personal representative’s requirement to provide annual returns to either the heirs or the court, or both. I also noted there that similar statutes apply to inventories but may actually waive the inventory obligation entirely. Therefore, it is possible for a personal representative to avoid the obligation of providing any information to the heirs. But as a practical matter, I rarely see a Will waive an executor’s obligation to report to the heirs, and I never see heirs waive the same. The language of a waiver in a Will is almost always restricted… [Read More]
Georgia Administrators and Annual Returns – What’s in a Waiver? Part I
As an Atlanta estate lawyer, I get a lot of calls from heirs complaining that the personal representative (a.k.a. executor or administrator) refuses to disclose any information to them. Usually, the caller is unaware that the law in Georgia is very lenient on executors and administrators with respect to their duty to report. By default an executor and administrator is required to file an inventory with the probate court within 6 months of her appointment and an annual return not later than 60 days after the first anniversary of the appointment, and then annually thereafter until the estate is closed. It’s difficult enough for an heir to have to wait an entire year to receive a report on an estate. Still, each individual heir can waive his right to receive a copy of the inventory and return, and all of the heirs can consent unanimously to the waiver of the personal representative’s obligation to file an inventory and returns with the court at any time. It’s surprising to me how often heirs do this. Also, a Will can relieve the executor from the inventory and return filing obligations regardless of what the heirs wish to happen. When this happens, the… [Read More]
Georgia Estate Planning: Everybody Needs a Will
I’ve been an Atlanta estate planning lawyer for several years, and on a regular basis I get new calls from people seeking help with an estate of a loved one who died intestate (i.e., without a Will). Those calls usually begin with the caller complaining that the decedent made no Will. Having represented dozens of clients dealing with intestate estates, I am immediately sympathetic. I can still help the caller but know from the start the process will be more complicated than it needed to be. Rocket Lawyer, an online legal service provider, found in a recent estate planning survey that 61% of Americans do not have a Last Will and Testament. Even worse, that number climbs to 70% for people with children under 18 years old. Failing to make a Will, especially for people in the latter category, will subject your estate to unnecessary difficulty and, in some cases, utter calamity through family infighting, incompetent estate administration, and litigation. People have myriad reasons to not make a Will: I’m young. I don’t have kids. I don’t own enough stuff. I’m not sick. I don’t want to think about death. The law will take care of it. All of the… [Read More]
Georgia Estate Attorney on Home with Mortgage: Sell It or Scrap it?
As an Atlanta probate lawyer, I’ve dealt with dozens of Georgia estates that include a home with a mortgage on it. How to handle the home and mortgage in Georgia can be difficult to determine, especially if the mortgage loan balance is close to the value of the home. The following is a basic guide to follow, though I urge any person facing this question to contact a Georgia estate attorney before following through on any decisions as each situation has specific facts that may not fit neatly into any of the scenarios below. Also, the guide below only takes into consideration financial considerations of the estate and heirs, not any sentimental attachments that an heir may to a home, which should be taken into consideration when determining how to proceed. If a Georgia estate holds a home in good condition with a mortgage, and the mortgage loan is significantly less than the fair market value (“FMV”) of the home (by at least 10%), it usually is best to continue to make payments on the mortgage and plan on either distributing the home to the heirs or selling the home directly from the estate as quickly as possible to relieve… [Read More]
Georgia Probate: What Does That Mean?
In Georgia, probate means the proving of a Last Will and Testament by a court of law. When a person who has made a Will (a.k.a. testator) dies as a resident of a county in Georgia, his Will must be presented to the court and proved to be valid. Once a Will is “admitted to probate,” or proved, the probate process is completed. The next steps are the appointment of the executor nominated in the Will and then administration of the estate of the testator according to the terms of the Will. The term probate no longer has any practical relevance once the Will is proved. A probate court in Georgia handles a variety of matters in addition to the probate of Wills. It oversees the administration of both testate and intestate estates, the appointment and removal of personal representatives of estates (a.k.a. executors and administrators), claims made against personal representatives, guardianship and conservatorship matters, marriage licenses and wedding ceremonies, and weapons carry licenses. If you are having any problems with an estate or other matter before a probate court in Georgia, email me or call me at 404-467-8611 to find out how we can help you. Our firm is located… [Read More]
