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sanderella79
Oct 22, 2013, 07:16 AM
What should I be doing.. how do I manage the bills set upbills set up to auto pay from my account..

AK lawyer
Oct 22, 2013, 09:00 AM
You have been appointed by the court as the executor of an estate?

These bills (expenses of the estate) should not be paid out of your personal account. They should be paid out of special account established for that purpose and funded from estate assets.

If I'm understanding what this is all about, you clearly need more guidance from your attorney.

sanderella79
Oct 22, 2013, 03:58 PM
But I just got p.r. Of estate after like 3 months.. I've been using the rent money that people pay to pay the mortgages and bills,etc.. Oh there are 23 properties. I been using her account and now the bank knows she has died so it's closed as far as using the debit card & check book to pay.. Although there are probably 50 bills set up to auto pay And they are still being deducted.. But I can't pay employees or some of the bills which are not auto pay out of her account.. I wonder if I can just put the rent checks into my account and pay those bills. Oh my mom's account is a ITF account where I can only gain access if something happens to her but I got to keep the account open due to the large # of auto deductions.can I pay the Mortgage payments with my account because id like to use the rent $ to pay them and maybe write a check from the estate of... and perhaps create a business account to put the extra rent $ in to use for repairs etc arms eventually I could split that $ with my brother.. Does any of that sound logical.. Please somebody help me because I'm alone on this

I'd b hate to put all of the rent into the estate account because doesn't the lawyer get 3% of that each month & for how long.. I won't be done paying mortgage any time soon.. I plan on using the money from the wrongful death lawsuit to pay off all mortgages but that may take a couple of years

joypulv
Oct 22, 2013, 04:27 PM
Wow. Confusing.
The day someone dies, the bank freezes the accounts and sets up an estate account, and if you are executor, you can write checks from that NEW account. It sounds like you know there is an estate account, but think the lawyer gets 3% of that.
We don't even know if you are the only heir, or countless other questions.
Too much to handle in this rambling way.
Talk to both the bank and the lawyer, and get the details from them.
Auto pay won't work - you have to contact each account and cancel.

ScottGem
Oct 22, 2013, 05:19 PM
But I just got p.r. Of estate after like 3 months..

What does p.r. Mean?

Did mom have a will? Are you named as executor? What lawyer are you talking about. You don't need an attorney to manage probate but with an estate comprising 23 rental properties it might be wiser. But the bottom line is everything you are talking about is pretty much illegal. You cannot pocket estate income, even to use it to pay estate bills. If the estate is generating income, then it should be able to pay its bills. But you need to file for probate and be declared the executor so you can open an estate account to receive income and pay expenses out of it.

sanderella79
Oct 23, 2013, 02:20 AM
ROFL.

What I am about is facts and logic. When I see something that appears logical and according to the facts as I know them, then I will agreee with it. If not I will disagree. I don't care who makes the statements. I don't try to personalize everything.

Do lawyers get 3% of the estate bank account also

ScottGem
Oct 23, 2013, 04:47 AM
Do lawyers get 3% of the estate bank account also

I moved this post from the other thread to keep it together. What a lawyer charges to administer an estate will vary by attorney and location etc. Generally a lawyer either gets paid an hourly rate billed to the estate or takes a percentage of the value of the estate. What that percentage is is usually subject to negotiation.

You need to answer some questions here.

1) Was there a will?
2) Has the estate been submitted for probate?
3) Were you appointed executor? If so, by whom (the will, probate court who?)
4) Are there other heirs (you mentioned a brother)?
5) Are there any disputes over who inherits the estate and what the split is?

But I will say it again. You cannot put monies owed to the estate in your personal accounts. That would be illegal. You should not pay bills from your personal accounts, that would be foolish. You need to keep a strict accounting of what income has been earned on assets in the estate and what you have paid out to creditors of the estate. You may not need an attorney to go through probate, but with an estate like you describe it may be the best course of action.

ebaines
Oct 23, 2013, 06:07 AM
What does p.r. Mean?

PR = "personnel representative." It's the term used in some states for executor.

To the OP: given all the business property in the estate you need a good estate attorney to help you manage it through the probate process. Fees can be negotiated. I also recommend that you buy a book on estate administration so that you become familiar with the steps of probate, how to set up an estate account, and how to handle the deceased's expenses. Believe it or not one book that I like for someone unfamiliar with all this is "Estate & Trust Administartion for Dummies."

sanderella79
Oct 23, 2013, 06:21 AM
I moved this post from the other thread to keep it together. What a lawyer charges to administer an estate will vary by attorney and location etc. Generally a lawyer either gets paid an hourly rate billed to the estate or takes a percentage of the value of the estate. What that percentage is is usually subject to negotiation.

You need to answer some questions here.

1) Was there a will?
2) Has the estate been submitted for probate?
3) Were you appointed executor? If so, by whom (the will, probate court who?)
4) Are there other heirs (you mentioned a brother)?
5) Are there any disputes over who inherits the estate and what the split is?

But I will say it again. You cannot put monies owed to the estate in your personal accounts. That would be illegal. You should not pay bills from your personal accounts, that would be foolish. You need to keep a strict accounting of what income has been earned on assets in the estate and what you have paid out to creditors of the estate. You may not need an attorney to go through probate, but with an estate like you describe it may be the best course of action.

We couldn't find the will.. he(lawyer) initiated probate a couple weeks ago.I had to Google exactly what that meant.then I asked him if I should call the mortgage company and he said no.. Because they would not be able to help me because I was still waiting on the judge to sign papers appointing me Personal rep.. I have not used my account yet before I did that I thought id ask you guys.. You see also when my mother died she was in the process of rebuilding a house that burned. The bank already issued one check to begin demo.. I paid workers, I used her/ and my boyfriends home depot card (joint holders) and I paid the employees with some of the rent money that was collected in cash.. well. I completed by 70% and the bank issued my second check to proceed with the project that they have a interest in. And after 6 months which is the end of this month insurance will stop paying the mortgage.. and her account is not closed to auto bill pay but to her bank bard and check book which is how I paid workers and the bills not set to auto pay.. I must do the best I can do to secure the estate. If I don't finish I will lose 80 thousand dollars and the bank will take me to court. I must honor the building and construction security act which is created so that in this kind of situation money can be disbursed and used for supplies and workers which the check was issued and is not designed to have extra money because it is disbursed in phases to secure their investment and can't be tied up in length arbitration due to a time limit. So the conduction act holds precedent over The Estate liabilities and the money can't be tied up in estate acct because I was going to deposit the check into my mom's account and although I can't get to it until I transfer all auto pays to the estate account I am going to use my personal money to compete this project [which I know is not advisable) but it's in the best interest of the estate to complete this and not default on the banks Mortgage and the interest that they have in said property. I say one more week I'm calling in next inspection and final check will be issued plus the reimbusement of additional charges incurred not forseen in their inspection. I will take the extra from that check which isn't much to reimburse myself by leaving it in mom's account and closing it in which it’s a p.o.d. Account paid to me. I will be in compliance with the mortgage holder [bank of America) and I will rent it out and that will go to estate. Everone is happy.. I gain no extra monies because I have a duty to uphold to my mother and my brother. He and I are the only beneficiaries. There is no fight between us. Only with the slowness of our layer and no advice.. I've had to figure v everything out by Google. I have a question do we really have to split.. He's in japan airforce. He can't manage the properties and I don't mind.I Plan to keep paying monthly mortgsge with rental income until the wrongful death suit is finalized then pay off the million dollars in mortgage and set up a business account for my brother and I to live off mortgage free rental income of about 15000 a month. He agreeds.. we just want to complete our mothers goal so her life's hard work wasn't for nothing. Please honestly tell me will my plan work. Can I present this plan to the judge. Also does my attorney get 3% of estate account because if so that's just going to delay him on pursuing the win win wrongful death claim and delay closing mom's estate acct as he collects. Pheeew.. hope you understand everything. I need advice. Been studying and no one to turn to.. And time is of essence with that burn house and all.. Thanks

sanderella79
Oct 23, 2013, 06:34 AM
I don't pocket Estates income.. I'm paying out of pocket as lawyer suggested and said id be reimbursed... Why you say because it's taking months he claims to get judge to sign executor papers because he was out of town and now he says judge signed and v when he gets them he will fax it to me . Bank won't open estate account without it.. and I need to continue paying bills but her bank card is closed. And I must not default although he says if your late they won't just drop me be they will notify me first but I just don't by that I rather pay with mom's rental cash if possible or mine from life insurance proceeds and I will keep excellent notes and all receipts and all is accounted. Im doing my best plus it's all I am able to do at this time. Can't work with all this business to do and no friends , I'm from ky and came here when she got killed with my kids and unable to leave.. I have no be family here either.. I'm just lost trying to educate myself Daily

sanderella79
Oct 23, 2013, 06:39 AM
I read it already.. I'm learning.. I do have a estate attorney I tried asking him questions.. I know how to handle the business.. that's not new.. Death and probate are and I'm realizing I'm going to have to be proactive if I am to secure this estate. I refuse to let my family down.


To the OP: given all the business property in the estate you need a good estate attorney to help you manage it through the probate process. Fees can be negotiated. I also recommend that you buy a book on estate administration so that you become familiar with the steps of probate, how to set up an estate account, and how to handle the deceased's expenses. Believe it or not one book that I like for someone unfamiliar with all this is "Estate & Trust Administartion for Dummies."

sanderella79
Oct 23, 2013, 06:47 AM
It's prob too confusing for u also.. imagine how I feel.. I'm feeling Better as I learn specially about that construction act thing I read about last night researching. Just tell me this.. our contract is 3% of value of assets.. Does this include her estate account which will be open for at least 2 years

ScottGem
Oct 23, 2013, 06:48 AM
OK, You need to badger the attorney. Tell him that you need to get the estate account set up ASAP or you will lose money and he will be responsible. Did you hire this attorney to manage the estate or was he your mother's attorney previously? What was the fee arrangement negotiated for his work?

As I said before, you need to keep an exact accounting of anything you pay out and yes you will be reimbursed from the estate. If there is no will, then the estate will be distributed between you and your brother on the basis of KY inheritance laws. However, anything you lay out will be reimbursed before the distribution.

Also, as the PR, you can take a payment for administering the estate. Not sure what is customary in KY, your attorney can advise, but that stipend also is paid to you before final distribution. You can have that stipend paid to you on a regular basis for living expenses.


Just tell me this.. our contract is 3% of value of assets.. Does this include her estate account which will be open for at least 2 years

Its on the total assets of the estate. However, the contract should specify how that is calculated. I'm not sure whether it would include cash assets earned after the period or not. You need to read the contract and see how that is specified. Its probably on the valuation presented to the probate court. But whatever it is, you already entered into the contract. He's not going to take 3% of everything deposited in the estate account because there are expenses that have to be paid. So read the contract and tell us what it says about 3% of what and how that will be calculated.

sanderella79
Oct 23, 2013, 07:04 AM
Its on the total assets of the estate. However, the contract should specify how that is calculated. I'm not sure whether it would include cash assets earned after the period or not. You need to read the contract and see how that is specified. Its probably on the valuation presented to the probate court. But whatever it is, you already entered into the contract. He's not going to take 3% of everything deposited in the estate account because there are expenses that have to be paid. So read the contract and tell us what it says about 3% of what and how that will be calculated.


I'm in Florida.. Came from ky.. also have properties there and three other states.. Yet to be probated.. is that standard.. As much as I'm learning I don't need to probably... okay I looked at papers.. 3%on the next $900,000 plus reimbursement for all actual and perspectives costs and expenses. Costs and expenses mean and include, but not limited to, court filing fees, service of process these, long distance telephone calls, faxes, publication expenses, certified and registered mailings, carrier fees, certified copy notary fees etc these pay to an accountant for income tax and estate tax filings are extra cost to be paid by the state and/or personal representatives over and above the noted above

ScottGem
Oct 23, 2013, 07:34 AM
Ok, so he gets $27K plus expenses. But its still not clear on what the "next 0K" is. But it appears that if the estate is valued at less than $900K, he will get 3% of that with a max of $27K, plus expenses. And he will need to submit an itemized bill for his expenses. But he's not billing you on an hourly rate. Probably one of the reasons he's dragging his feet. But you need to keep after him and tell him that you need to get the estate account setup ASAP.

Do you have an idea on how much income the properties produce? You should have an idea about the monthly rental income vs costs associated with each property (mortgage, maintenance, utilities, etc.)

One of the first things I would do is prepare an income sheet like that. Even a simple spreadsheet like the sample I've attached. Or the accountant may be able to give you something. This will give you an idea of what income you will be dealing with to pay the bills of the estate.

sanderella79
Oct 23, 2013, 07:47 AM
Ok, so he gets $27K plus expenses. But its still not clear on what the "next 0K" is. But it appears that if the estate is valued at less than $900K, he will get 3% of that with a max of $27K, plus expenses. And he will need to submit an itemized bill for his expenses. But he's not billing you on an hourly rate. Probably one of the reasons he's dragging his feet. But you need to keep after him and tell him that you need to get the estate account setup ASAP.

Do you have an idea on how much income the properties produce? You should have an idea about the monthly rental income vs costs associated with each property (mortgage, maintenance, utilities, etc.)

One of the first things I would do is prepare an income sheet like that. Even a simple spreadsheet like the sample I've attached. Or the accountant may be able to give you something. This will give you an idea of what income you will be dealing with to pay the bills of the estate.


There is quite bit extra.. only one unit empty which I've almost competed and I'm going to rent out the 5 rooms individually like my mom does at 400 a month, plus 3 other houses with rooms rented with four bedrooms in those.. A 16 unit apartment building, so that's 33 units there on 5 properties and just 5 mortgage payments, well some mortgage payments have five houses combined to one payment and 18 other houses that are single dwelling.. so I'm sure there's extra $ that's why Im hoping he don't get 3% of that.. But thank you for that advice. I will do.. When I looked through my mom's stuff that's what she did..

But I plan to pay monthly until awarded judgment in be wrongful death and pay it off.. that is my goal & a promise to my mother.. I hope they allow me to take over payments.. I don't have credit but I have rental income and also is there a way I can find out the amount v of each Mortgage payment because some bills only have loan #

Last question.. Do I have to put all rental income into estate account or can I put some extra in a Business account for repairs or if my brother needs

ScottGem
Oct 23, 2013, 08:44 AM
I still think you need to have some sort of listing. Again, the accountant may be able to provide it.


But I plan to pay monthly until awarded judgment in be wrongful death and pay it off.. that is my goal & a promise to my mother.. I hope they allow me to take over payments.. I don't have credit but I have rental income and also is there a way I can find out the amount v of each Mortgage payment because some bills only have loan #

I'm not sure I'm following this part. I understand that you plan on paying the the monthly mortgages. It may be several years before the estate is fully settled. Until it is, you should be using the Estate account to pay bills. So there is no need for the lenders to allow you to take over payments. That would only happen when it comes time to change the title of the properties.

Did mom buy/maintain these properties personally or did she have a business entity (Inc, LLC, S-Corp) to manage the properties. If there is a business entity, then as soon as you are appointed PR, you go to the banks where the business entity had accounts and get yourself added as authorized signator. Then you can use those accounts just as they were being used.

Are the mortgages in mom's name or a business name? I would be surprised if there is not a business entity here.




Last question.. Do I have to put all rental income into estate account or can I put some extra in a Business account for repairs or if my brother needs

See above. If brother wants an advance on his inheritance, you can give it to him as long as there is money there.

But, again, this is going to be a long process. Once you are officially the PR, then you can act just as mom would have in running this business.

And please feel free to ask any questions you need to.

sanderella79
Oct 23, 2013, 08:57 AM
No she did it alone.. But for some a layer created an llc for us.. Don't know why but I figure I should use it.. but that's awesome about not having to be approved.. I was worried about that.. You have really cleared things up and I can breath a little.. Thank you for your time.. its been 3 months and I just didn't know how I could do this.. Do I contact the mortgage companies though and reroute payment or does the Lawyer.. I never thought to ask his accountant.. I have to close her account to receive the money in there.. Do I have to put all rent in estate account after I figure out bills, mortgage and rent borb am I Allowed to create a account that was created formy brother and I

ScottGem
Oct 23, 2013, 09:31 AM
The mortgage holders need to be told that she is deceased, but that her estate will continue to make payments and that there is more than enough rental income coming in to maintain the loans. This should come from the attorney.

So you NEED to get an estate account setup ASAP. That should be the priority. To make sure all the bills are being paid and all the income properly collected and recorded.

I would funnel all rental payments through the estate account (except where the rent is owed to an LLC or other entity). Once it is in there, you can transfer monies to other accounts as long as all the bills are being paid.

You shouldn't have to close her accounts since as the PR you can be added as a signator on those accounts. But it may be better to consolidate. That's a question for the lawyer and accountant.

Going forward, you and your brother need to decide on how the estate will be split. Do you want to sell off all the properties and just split the proceeds or do you want to maintain the properties and just split the income. If the latter, I would recommend creating a corporate entity, sell or transfer all the properties to that entity and then you and your brother split the profits each year.

AK lawyer
Oct 23, 2013, 09:39 AM
I've just read through three pages of posts from yesterday or so.

OP wants to run estate monies through his/her personal account because, evidently, the contract with the attorney specifies that the attorney gets 3%. To do that to avoid paying the attorney would be fraudulent and OP would be in breach of contract with the attorney (although the attorney, if competent, will probably catch the attempt to defraud him/her anyway).

On the other hand, it is a bad contract. Either re-negotiate the contract or get another attorney.

ScottGem
Oct 23, 2013, 09:45 AM
On the other hand, it is a bad contract. Either re-negotiate the contract or get another attorney.

Do you think so? 3% of the first $900K of the estate assets + expenses, doesn't seem that bad to me.

But yes I agree that all income and expenditures need to be processed through the estate accounts.

AK lawyer
Oct 23, 2013, 09:53 AM
Do you think so? 3% of the first 0K of the estate assets + expenses, doesn't seem that bad to me. ....

Depends on how complicated the probate is, but yes.

$27 K is a lot of money for (for example) a few hours of work. Many attorneys hire paralegals to do the bookkeeping, etc.

That is why OP should negotiate an hourly rate.

ScottGem
Oct 23, 2013, 10:57 AM
Depends on how complicated the probate is, but yes.

K is a lot of money for (for example) a few hours of work. Many attorneys hire paralegals to do the bookkeeping, etc.

That is why OP should negotiate an hourly rate.

I'm not so sure because this does appear to be a pretty complex estate with some properties owned by legal entities, some owned directly be the deceased, no will, etc.

Besides which a contract has already been entered into and I'm not sure how good an idea it would be to rewrite it at this time.