Wow. A major decision from the Iowa Supreme Court issued on March 28, 2014 about estate administration malpractice. The personal representative of an estate sued the probate lawyer who was hired by the personal representative. Her complaint with the estate lawyer: the estate lawyer did not adequately advise the estate’s personal representative about the executor’s PERSONAL interests in and to the estate. If you are a beneficiary of a Palm Beach estate, or the personal representative of an estate of which you are also a beneficiary, you may want to read this probate legal opinion. More so, if you are a Palm Beach probate lawyer who is advising a Palm Beach personal representative, you may want to consider the issues laid out in this Palm Beach probate commentary. For those estate executors (Florida personal representatives) who also inherit under a Florida estate: Q: does your Palm Beach probate lawyer represent you INDIVIDUALLY or only on behalf of the estate? Who is looking out for your Florida inheritance rights?
Duty of Care Owed By Attorney Hired by Executor of Estate
- executor brought a legal malpractice lawsuit against estate attorney
- executor argues: probate lawyer failed to protect her personal interests
- How? When?
- During the administration of the estate and
- in the distribution of property of the estate
Probate Lawyer Wins at Trial Level— no duty to protect personal interests of executor ! (that’s big )
- The probate attorney won at the trial level
- The trial court said that the estate attorney did not have a duty to protect the personal interests of the executor.
- On appeal, that decision of this probate malpractice lawsuit was reversed
Supreme Court: no duty to protect personal interests of executor
In a major win for the probate law firm which was representing the personal representative of the estate, the Supreme Court of Iowa sided with the trial court: no duty to protect the personal interests of the executor. This makes you wonder:
Q: did anyone tell the Personal Representative of the Estate that the probate lawyer she hired was not looking out for her?
- February 27, 2005: Elmer died at age 86 with a will
- Elmer left his estate in equal shares to three of his four children
- Elmer dis-inherits his other daughter
- Largest asset of the estate was farmland, which Json ames was farming pursuant to a lease he had with his parents
- Daughter = executor under the will
- Executor hires probate attorney
- Executor designated the attorney in the probate report filed with the probate court in the probate proceedings
- NO OTHER WRITTEN DOCUMENTATION of attorney-client relationship between estate executor and probate lawyer
Long story short
- probate lawyer does legal work to deed the real estate to the estate beneficiaries but evidently
- did not advise the executor (personal representative) that the validity of the option might be subject to a legal challenge and
- did not advise her to seek independent counsel to obtain legal advice on her personal interests in the transaction
Estate Malpractice Lawsuit Filed Against Probate Lawyer
- There was first a proceeding claiming an option to buy the real estate under the lease was invalid; and the
- estate beneficiaries claimed the market value of the farm was much more than the purchase price
- grounds to invalidate the option : unconscionability & undue influence.
- They settled but later
- brought legal malpractice lawsuit against probate lawyer
Question for Palm Beach Personal Representatives & Estate Beneficiaries
Q: Does an estate attorney represent an executor both in the capacity of an executor and with respect to the personal interests of the executor?
Here’s the complete legal opinion from the Supreme Court of Iowa: http://www.iowacourts.gov/About_the_Courts/Supreme_Court/Supreme_Court_Opinions/Recent_Opinions/20140328/12-0627.pdf
FOR PALM BEACH PROBATE LAWYERS: Estate Administration Tips for Palm Beach Estate Lawyers
- Get a signed legal services contract with the personal representative which hired you to handle the Palm Beach probate
- Define your fiduciary duties in the legal services contract
- Consider limiting your fiduciary duties to the personal representative in the legal services contract
- Do you want to represent and advise your client on his or her fiduciary duties as personal representative of a Palm Beach estate, or his or her personal interests in the Palm Beach estate (such as inheritance rights) or both?
- Consider : the firm is hired to represent you ONLY in your capacity as Personal Representative of the _______________ Estate. Firm does not represent you individually regarding the Estate. Your individual interests in and to the Estate are different than the fiduciary duties which you owe to others. If you want someone to represent and advise you about your personal interests in the Estate, you should hire another Palm Beach probate lawyer to advise you on, and represent your individual interests in, the Estate.