Can an Executor Take from the Estate?

There are a lot of different aspects to working an estate through the Florida probate process. One issue that can arise is an Executor of an estate taking money from the estate. But – is it legal to do that? Is this a legitimate action, tied to reasonable fees, perhaps…or is it something more?

This article will prime readers for understanding the role of an estate executor and potentially some red flags to look out for in the midst of the probate process. For advice on your own case and helping an estate navigate through Florida’s notoriously complex probate arena, contact the esteemed will & probate attorneys at Suncoast Civil Law.

Can an Executor Take Money from the Estate?

An executor of an estate, also often referred to as a personal representative, is the person who has been appointed to execute a deceased person’s estate. This estate administration will include paying all the bills, identifying beneficiaries, and appropriately distributing all of the assets. As you can imagine, an executor’s job can take a lot of time and effort.

In recognition of the work Executors perform, Florida law does state that Executors are entitled to be paid a percentage of the deceased’s estate. Executors may also be compensated for “extraordinary services” that they may need to perform in the course of administering the estate. This might include, for example, the performance of real estate assessments, preparation of taxes, etc.

When Can an Executor Receive Compensation?

An estate could, theoretically, not be substantial enough to pay off all of the creditor debts or claims against it. Because of this, Executors are entitled to receive their just compensation prior to the estate satisfying its creditor debts.

Just because an Executor is entitled to compensation, that does not mean they have to take it. Executors are free to waive their right to be compensated – which often happens when the executor is also a beneficiary under the will.

What if an Executor Takes Prior to Probate?

Some Executors, unfortunately, have taken advantage of their access to an estate before the estate enters probate. One of the initial duties of a personal representative is to inventory the estate: list out all of the assets and establish their value.

It’s easy to imagine how a dishonest executor might take advantage or funnel away assets from the estate before the inventory is officially established: essentially concealing assets from the intended beneficiaries and the probate court. While this might amount to items of value such as cash, collectibles, art, and jewelry,  people should keep in mind that there are other items of sentimental value as well: family photos, particular heirlooms, etc.

The above items may be easier to conceal as there is no title paperwork or paper trail. It can be difficult to prove that items or assets have been mismanaged or are missing – this is why it is wise to take a proactive approach from the start. A competent wills & probate attorney can help.

Contact Suncoast Civil Law

It can be difficult to know how to begin, when faced with handling a loved one’s estate. Unfortunately, time is often of the essence, and it is important to act quickly in order to take appropriate steps and secure knowledge of all that an estate entails. If you have questions about your own will & probate matter, we can help. Contact the Sarasota wills & probate attorneys at Suncoast Civil Law today.

Sources:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0733/Sections/0733.617.html

triblive.com/local/westmoreland/mother-daughter-accused-of-stealing-4-4m-from-greensburg-beverage-ceos-estate/