A recent #probate lawsuit out of the northwest, decided four days ago, demonstrates how things can go terribly wrong in #estate litigation.
The parties to this #probate litigation signed an #estate settlement agreement, which is, by the way, very common for #probate disputes in Florida. Most #probate court judges require the #heirs and #Florida estate beneficiaries to go to mediation with a #Florida mediator, in an attempt to resolve the #probate lawsuit. Washington evidently has a #trust and estate dispute resolution act.
Here’s what happened:
#ESTATE BENEFICIARIES –#ESTATE CREDITORS ? –SETTLE PROBATE LAWSUIT — SIGN SETTLEMENT AGREEMENT
In 2008, the #personal representative of an estate entered into a settlement agreement with two individuals who were to receive a share of the #estate. They were evidently #probate beneficiaries but the #probate court later referred to them in a lawsuit as #estate creditors. The #estate settlement came about, evidently, over a #will challenge or an #estate dispute regarding the will. Here was the #probate settlement:
- 2 of the #estate beneficiaries of the #probate were to receive $200,000 as their #inheritance share of the estate
- another #probate beneficiary, Carol, was appointed #successor personal representative to #administer the estate
- the estate paid the two beneficiaries $100,000 cash— towards their $200,000 #inheritance
- these two beneficiaries were to receive another $100,000 after the sale of a house which was in the #probate estate
- Carol signed a #promissory note for the remaining $100,000, due upon sale of house which was in the #probate estate — or within one year, whichever occurred earlier.
ESTATE IS SHORT CASH—#PERSONAL REPRESENTATIVE PERSONALLY RESPONSIBLE FOR NOTE
The house that was in the estate was sold – – – evidently for less money than people anticipated. It looks like there was a cash shortfall in the estate.
After the sale of the house, the 2 #estate beneficiaries were still owed $29,000 of the note which was signed by the #personal representative of the estate.
#BENEFICIARIES SUE #PERSONAL REPRESENTATIVE — for personal liability
In November 2009, the 2 #probate beneficiaries sued the #personal representative of the estate:
- they filed an #estate petition on the note against Carol personally and in her capacity as #personal representative
- they also asked the court to #remove Carol as personal representative
3 DAY #PROBATE TRIAL
In March of 2010, the #probate court entered judgment against Carol —-after a three day #probate trial. The #probate court:
- concluded that the two individuals were #estate creditors
- as #creditors of the estate, they were entitled to payment before any distribution of property to the heirs
- determined that both the #probate estate and Carol – – #personal representative – – – were personally liable for the $29,000 on the promissory note
- removed Carol as personal representative
- appointed a new #successor personal representative
- ordered the sale of the estate’s interest in a #family property
#PERSONAL REPRESENTATIVE APPEALS – AND LOSES #PROBATE APPEAL — and must pay #attorneys fees
The Personal Representative appealed but the appeals court sided with the #probate court. When the estate was closed, she tried to #re-open the estate but was denied. On appeal, she lost — and the court awarded #attorneys fees.
FOR REFERRAL SOURCES, LAWYERS AND LITIGATORS ONLY
We help you with Florida estate and trust administration and trials, and #probate appeals.
Our #Florida probate law firm :
- does not prepare estate plans
- does not draft wills and trusts
- does not steal your clients or your probates
Our #West Palm Beach, Florida #probate litigation firm :
- hands your clients back to you at the conclusion of the #Florida matter—after all, they are YOUR clients
- we try cases & handle appeals
- our practice is restricted to #Florida probate disputes & contested guardianships
- we work with you on #Florida estate administration, #Florida probate
- we litigate for and protect beneficiary rights
- we represent #Florida personal representatives or executors, and #Florida trustees
- we receive approximately 95% of our clients from other lawyers
- we take contingency fee cases
Who are we? Our firm is comprised of
- serious Florida litigators, with an outstanding reputation in our legal community
- focused probate lawyers,
- experienced paralegals and support staff.
We have been involved in high profile, nine figure, multi-million-dollar #Florida estates, including Madoff matters, old # Palm Beach money and complex trusts and multi-party #Florida probates. We also handle “small” or “simple” matters. All we do is litigate and help you with #Florida estate and trust administration. #Tortious interference with an inheritance and allegations of #undue influence, and #will challenges and trust challenges are a unique subspecialty of the law. Does your client know which ones to file, when to do that, and why? Do you know the different ways to prove each case? How about quantifying or assessing damages? It would be our pleasure to work with you and to serve your clients. For a complete copy of this very recent legal opinion please email michelle@pankauskilawfirm.com.
John Pankauski, www.johnpankauski.com, is the author of The Trustee’s Book – An Individual’s Guide To Money, Misfits, Marriages, and Mismanagement, and the upcoming The $41 Trillion Inheritance War. He is an estate and trust litigator in West Palm Beach, Florida, www.pankauskilawfirm.com and has been featured on the CBS Evening News, in The Wall Street Journal, MarketWatch, NBC, ABC and Fox networks.