Executor's fee after the fact?

[barbarrow]

What is the name of your state? Washington
My brother is the executor of my father's will. He has done a lousy job, spent nearly every dime on nonsense, but since it was not that much, we let it go. I have purchased the ony real estate asset, his house, from my siblings, but it was done through quitclaim deeds after the property was dispersed from the estate. It was not purchased 'from' the estate, but from them as individuals. We tried to do this right after my father's death, but my brother insisted the house was worth more and drove the price up by nearly 100K from our original offering price - which was based on an appraisal and comps from agents done within a few months of his death. Now he would like us to lie and sign off on the estate saying we offered the inflated price just after his death, so he can avoid paying capital gains taxes. My husband is afraid if we do not, he can come back and demand an executor's fee, which he has stated many times - in writing - that he will not be taking. I have already signed on the estate, but at the other valuation on the house. He would have to go back in and change the amount at which he valued the house. Wouldn't I have to then resign? And if he does demand a fee out of spite, can he come after the heirs to pay it when he was the one who drained the estate of funds?

Could someone respond please??

 

[Dandy Don]

Your husband does not have to worry about your brother retroactively claiming an executor's fee. Probate is over and claiming the fee is impossible--anyway, there is no money left in the estate so how would he be paid?

What is the value of the home and how much are the capital gains taxes?

He has been screwed by his own greed. Maybe there is a silver lining in this cloud--if he can't pay the taxes, potentially the IRS will probably file a lien against the home for his nonpayment of the taxes and probably they will force the home to be sold to pay the debt and if there is anything left over it will probably be split amongst the heirs.

DANDY DON IN OKLAHOMA ([email protected])

 

[barbarrow]

The home is mine free and clear. I have purchased my brother's two shares from them, as individuals, because the executor had dispersed the asset and issued deeds to all three of us. The estate has no money left. The probate is still open, but is just a matter of final signatures and filing. Now he would like us to allow him to change the value of the house at the time of inheritance in the estate paperwork, (to the actual sale price to avoid capital gains) and sign off on it to be true. It is not true, and I really can't understand how the estate attorney would allow it. I made an offer to buy it from the estate a few months after my Dad's death, through my own attorney, so wouldn't the estate paperwork reflect that?
Mostly I needed to know if there was any way he could claim an executor's fee at this late date, when he has dispersed and sold everything in the estate already, even if probate was still open.

 

[Dandy Don]

You all need to figure out a way to get the capital gains taxes paid or it is possible you may lose the home.

And please don't sign what he is asking you to sign off on unless you all want to spend time in jail.

 

[anteater]

You all need to figure out a way to get the capital gains taxes paid or it is possible you may lose the home.

And please don't sign what he is asking you to sign off on unless you all want to spend time in jail.

The OP is in no danger of losing anything. The OP bought the house. The OP owes no capital gains tax. The OP's siblings owe the capital gains taxes.

 

[Dandy Don]

Bought the house from an estate that hasn't paid the capital gains taxes. I sure hope the IRS agrees with you when the executor says he can't afford to or won't pay them.

 

[anteater]

Bought the house from an estate that hasn't paid the capital gains taxes. I sure hope the IRS agrees with you when the executor says he can't afford to or won't pay them.

The OP did not purchase the house from the estate. The estate distributed ownership to the OP and siblings. The OP purchased the house from the siblings. The estate has no capital gain; the OP's siblings do. The executor sibling, as executor, owes nothing. The executor sibling, as an individual, owes a capital gains tax.

The home is mine free and clear. I have purchased my brother's two shares from them, as individuals, because the executor had dispersed the asset and issued deeds to all three of us.