Post distribution of assets actions

[scranton1977]

What is the name of your state (only U.S. law)? Pennsylvania

Can one or several heirs take legal action against another heir to recover assets after a settlement agreement has been assigned and the estate's assets have been distributed?

There are six children in my family. My sister served as the guardian of my father's estate for the last year of his life. Our executor now wants to get a settlement agreement signed and the assets of the estate distributed. But three of the siblings suspect my sister who served as guardian of misappropriating funds and even of hiding a large chunk of my father's assets during her guardianship that has never been counted as part of the estate about to be distributed.

Once the settlement agreement is singed and the assets are distributed, is that the end of it, even if other assets are found later to have been hidden?

Thanks for your time and expertise.

 

[Proserpina]

What is the name of your state (only U.S. law)? Pennsylvania

Can one or several heirs take legal action against another heir to recover assets after a settlement agreement has been assigned and the estate's assets have been distributed?

There are six children in my family. My sister served as the guardian of my father's estate for the last year of his life. Our executor now wants to get a settlement agreement signed and the assets of the estate distributed. But three of the siblings suspect my sister who served as guardian of misappropriating funds and even of hiding a large chunk of my father's assets during her guardianship that has never been counted as part of the estate about to be distributed.

Once the settlement agreement is singed and the assets are distributed, is that the end of it, even if other assets are found later to have been hidden?

Thanks for your time and expertise.

If the estate is substantial it might not be a bad idea to hire a forensic accountant to do some investigating first before you go any further.

 

[anteater]

My sister served as the guardian of my father's estate for the last year of his life.

Was this sister appointed by a court as guardian?

What is the executor's take?

Is there some reasonable basis for the siblings' suspicions?

The suspicious siblings are not required to agree to a settlement agreement.

 

[curb1]

What is the connection/relationship of the executor to the estate? How is the communication between executor and siblings?

 

[scranton1977]

Answers to anteater

Was this sister appointed by a court as guardian?

What is the executor's take?

Is there some reasonable basis for the siblings' suspicions?

The suspicious siblings are not required to agree to a settlement agreement.

Executor is not taking a side on the issue, only that an accounting would delay the process and cost money.

Yes, there is reasonable suspicion.

Who has to agree to the settlement agreement then if not all the heirs?

 

[scranton1977]

ONe more answer to anteater

Was this sister appointed by a court as guardian?

Yes, she was the court appointed guardian of the estate.

 

[scranton1977]

What is the connection/relationship of the executor to the estate? How is the communication between executor and siblings?

No relationship outside of process. Communication quality varies.

 

[anteater]

Executor is not taking a side on the issue, only that an accounting would delay the process and cost money.

Yes, there is reasonable suspicion.

Who has to agree to the settlement agreement then if not all the heirs?

In PA, a settlement agreement - often called a family settlement agreement - is one way to settle an estate. The executor obtains the agreement of the beneficiaries that the estate was properly administered and that the beneficiaries agree with the final distribution. Then submits the signed agreements to the court to close the estate and have the court release the executor from his/her duties. But, I have to tell you... It is normal practice for the executor to provide an accounting (and usually a copy of the Inheritance Tax return) to the beneficiaries along with the request to sign the agreement.

The alternative is that the executor submits all the relevant estate administration information to the court clerks, an audit is performed, and then a hearing is scheduled to hear any objections, and, if none, to have the court order the final distributions. Yes, there is some additional time and expense involved with the alternative.

The problem with the beneficiaries signing the agreement is that the probate estate would have to be re-opened if it were to be found that the guardian breached her fiduciary duties. I would suggest that it is better to get the guardian actions question settled before closing the probate estate.

Has anybody looked into the reports that the guardian should have provided to the court?

I take it that the executor is not one of the beneficiaries and, therefore, is disinclined to look into the guardian's actions.

I would suggest that the 3 siblings with suspicions seek consultations with a few probate attorneys, lay out the information they have, and see what those attorneys suggest.

 

[curb1]

What is the dollar value of the "suspicions"? Are they property or cash assets? Can you do the legwork to justify your suspicions?

What does "sister who is guardian" say when she is directly asked about the "suspicions"? How solid are these "suspicions"? The "suspicions" should be very solid or you might risk tearing the family apart. They can't be guesses.

 

[joeklick]

If the decedent owned any property the public recorders for that county should have something. A lot of county recorder's records are available online.

Just to let you know, there are at least four ways I know of embezzling money.
- Anyone could have changed the beneficiary's before a person died. I was recently able to change my IRA online.
- Someone could have forged your signature on a Beneficiary Disclaimer and removed you as a beneficiary after the person's death.
- The transfer of funds using a Medallion Signature Guarantee.
- An Estate Tax Release to transfer funds, if the decedent's state has these I couldn't say.

 

[Zigner]

...if the decedent's state has these I couldn't say.

Maybe you could put a little effort in to confirming before posting what may turn out to be red herrings?