Louisiana succession

[kc5mfu]

In the state of Louisiana, when paying a lawyer a percentage for succession of an estate, would it make sense to consent to independent administration? Estate in question is relatively debt free, only debt owed is burial expenses and some medical bills. Real estate, a house, a vehicle (no loans nor mortgage on the aforementioned) and bank accounts make up the estate.

 

[anteater]

What role is the attorney playing? Administrator of the estate? Attorney retained by the Administrator?

How is the attorney being compensated? An hourly fee? A % of the estate assets?

 

[kc5mfu]

What role is the attorney playing? Administrator of the estate? Attorney retained by the Administrator?

How is the attorney being compensated? An hourly fee? A % of the estate assets?

The attorney is being compensated/paid by a percentage of the estate value. The executrix of the estate is the "independent administrator".

 

[anteater]

Then, I would say that it depends upon how much faith you have that the executrix will administer the estate fairly and efficiently.

Generally, independent administration is quicker and less expensive.

 

[kc5mfu]

Then, I would say that it depends upon how much faith you have that the executrix will administer the estate fairly and efficiently.

Generally, independent administration is quicker and less expensive.

All research indeed leads me to believe that independent administration is quicker and cheaper. Why would independent administration be offered if the attorney is being paid by percentage? Seems the attorney is now benefiting from the independent administration (being paid by percentage) more than the heirs. Would I be correct?

 

[anteater]

Well... The attorney might have charged more if independent administration was not granted.

 

[kc5mfu]

Well... The attorney might have charged more if independent administration was not granted.

What strikes me as odd is that the fee arrangement of 3% was agreed upon first. Then a week or so after the executrix had independent administration paperwork.
1. Where do the heirs benefit with independent administration with this being the case?
2. If the attorney's 3% was agreed on first, why even go with
independent administration?

 

[colourfastt]

What strikes me as odd is that the fee arrangement of 3% was agreed upon first. Then a week or so after the executrix had independent administration paperwork.
1. Where do the heirs benefit with independent administration with this being the case?
2. If the attorney's 3% was agreed on first, why even go with
independent administration?

I was trying to avoid getting involved in this thread, but ... In Louisiana independent administration of an estate refers to the level of court oversight in the administration of the estate. With "IA" the executor isn't required to have court approval for most transactions done on behalf of the estate. It doesn't have anything to do with the remuneration of an attorney retained by the estate.

As far as the attorney's fees go, the typical fee (at least in the Lafayette area) is $1,500 to $3,000; if the fees are on a percentage basis, the average is 3% to 5% (again, for the Lafayette area).

One final thought --- did the will expressly call for independent administration of the estate?

 

[kc5mfu]

I was trying to avoid getting involved in this thread, but ... In Louisiana independent administration of an estate refers to the level of court oversight in the administration of the estate. With "IA" the executor isn't required to have court approval for most transactions done on behalf of the estate. It doesn't have anything to do with the remuneration of an attorney retained by the estate.

As far as the attorney's fees go, the typical fee (at least in the Lafayette area) is $1,500 to $3,000; if the fees are on a percentage basis, the average is 3% to 5% (again, for the Lafayette area).

One final thought --- did the will expressly call for independent administration of the estate?

The will DID NOT call for independent administration. How does IA benefit the heirs in the case where an attorney is being paid by percentage. The attorney was hired and his fee was agreed to prior to IA.

 

[kc5mfu]

The will DID NOT expressly call for independent administration.

 

[colourfastt]

The will DID NOT call for independent administration. How does IA benefit the heirs in the case where an attorney is being paid by percentage. The attorney was hired and his fee was agreed to prior to IA.

IA doesn't change the percentage paid by the estate to the attorney; therefore, it doesn't benefit (or harm) the legatees (not heirs) in any way. The only why IA would benefit the attorney is if he were also the executor because it would mean that he would have to spend less time in court re. the estate. As far as the executor (if not the attorney), a case could be made that the fee due the executor for administering the estate should be higher since the executor would have to spend much more time in court having his actions re. the estate approved by the court.