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Error in Estate Distribution

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W

WRiley

Guest
What is the name of your state?New York (I live in North Carolina but the will was probated in New YorkState where the deceased lived.)

A year ago I received a distribution as a beneficiary. Before receiving the distribution I signed a release accepting the amount and releasing the executor from any future claims from me. Now the lawyer handling the estate has written me (and other beneficiaries)saying a mistake was made in the distribution, and asking us to return about 5% of what we received so it can be redistributed. Am I obligated to return the money?
 


Dandy Don

Senior Member
Before repaying, get a specific explanation from the attorney in writing as to exactly what error occurred and ask them to explain the calculations. Also if possible, ask the attorney or executor if bond was posted for this probate case.
 
W

WRiley

Guest
Error in Distribution

ThanksDandy DOn. The distribution error was caused as follows according to the lawyer: Half the estate went to charity and half to friends of the deceased. Taxes to be paid were deducted from both the shares of charities and non-charity beneficiaries,when in fact all taxes should have been paid out of the shares of non-charity beneficiaries. As a result, non-charity beneficiaries owe back to the Estate a portion of the tax liability. This amount will be paid to the charity beneficiaries. Assuming the tax returns are accurate (I donot know since I have not seen them), I still wonder if I am legallyresponsible for returning the money orif it is the responsibility of the executor to pay for the error. Also, assuming I amresponsible, doI havethe right to see thetax returns before agreeing to pay?
 

Dandy Don

Senior Member
Try to find out from the attorney how did he find out that a redistribution needed to be done (was he asked to do it by the IRS--if so, then ask him to furnish you with a copy of the letter or whatever other documentation asks for the redistribution).

It sounds as if the request is legitimate since it is such a small amount, but you have no way of knowing what he is going to do with the money after he gets it. You have the right to ask for a copy of the tax returns, but that will not necessarily reveal anything--ask if an amended tax return is going to be submitted or is that not necessary?

Executor is liable since he is supposed to get professional advice from an attorney if he does not know how to do the distribution.
 

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