Do I as an executor relinquish any of my powers when the attorney sets up the account and pays creditors and does the final settlement? Would the attorney need to let me know what money they are paying out to creditors before they pay it out and how much is in the account. Just concerned because all of the firms I've talked to except the one I want to go with, have me opening the account. I guess I am concerned with maybe not knowing what is going on with the account during the probate process until the end.
This comment isn't specific to estate management of a deceased person, but rather affects a guardianship. A guardianship case to which I was thankfully minimally exposed alerted me to how much power a selected person not in the family can have, and how much money can be wasted.
The individual made decisions on upgrading property, wouldn't allow family to become involve, spent and billed outrageous sums. I was appalled when I saw the pleadings detailing all this individual (an attorney) had done, and how much he spent.) This wasn't estate management for a deceased person; it was more akin to exploitation of a vulnerable adult.
I mention this b/c an attorney will have his/her own concept of management, can and may select others to handle some aspects, and the cost of estate administration climbs. It's not always easy to work with an attorney who feels he/she has the upper hand b/c of experience and training. While that may be the case, you also have a say in management, and that has to be respected.
If you feel this necessary, I would do some very, very serious reading on EVERYTHING that's involved, draft a work scope for the attorney, and if necessary, negotiate what will be done and what won't. You should also have some role in oversight and financial monitoring. An attorney might cringe at these restrictions though.
Alva is right; this kind of management is difficult. The first Trust I managed was a breeze; the existing one is not. I'm soooo fed up with IRS regs that are difficult to understand, with seemingly contradictory regulations, with paperwork, and more. I won't give up b/c my father relied on me, but I wouldn't do this again except for a family member who really, really needed assistance.
When 1 gives different counsel then the many, it is wise to question that counsel. If it offends them, time to choose a different attorney.
If so, YOU are hiring the attorney; you are responsible to know what is happening and when, and should set up the notification process with the attorney. Yes, you should turn over all the creditors to the attorney, but you need to know who they are and what you are handing over and when it is paid.
An account for the estate must ALWAYS be opened,no matter whether you are using an attorney or not. My advice? YOU do it with the "help" of an attorney.
This account has to have a seperate EIN number with the IRS. The attorney can help you get this in minutes online. Then you have at the end to pay taxes for both the estate and for the individual's last filing.
I would be happier doing the executor work myself (closing accounts, gathering estate, and etc) with the help of an attorney. But if you have a good and reputable Trust and Estate Attorney he can do it all (for a big fee) instead of the hourly fee to help you with filings and so on.
If you are executor then these accounts are open to you while you settle an estate.
I think you should discuss with your attorney how all of this works step by step because I am thinking there is some lack of understanding and some questions you need answers for.
Wishing you the best. It's a process. Doesn't have all to get done in one day, but important it is done correctly. I found it so onerous that I (I am 80) decided not to be Executor and Trustee for my husband's Trust should he die before me. I did this for my bro; just not up to doing all of it again in a somewhat more complicated Trust.
The lawyer was paid out of the estate for his services. But, you can make him Executor and he can get the % of the estate allowed. In my State its 4% up to a certain amount. The bigger the estate the lower the %. The lowest for my state is 2%.