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Permission to Sue

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peppylady

Member
What is the name of your state? Florida

Does an executor of a probated estate have to ask the beneficiaries of the estate for permission to institute a lawsuit against someone if it has to do with estate assets?
 


lwpat

Senior Member
No. The PR is responsible. It is a very good idea to get their written approval since the legal fees will be coming out of the estate. Same if you decide not to sue. It is called CYA.
 

tranquility

Senior Member
This is not unusual in a situation where there is a note to the beneficiary out there. The estate *must* try to collect the note, especially in a large estate but even in a small one, as there are tax ramifications to the indebtedness. If an executor, even where there is a single beneficiary getting it all, were to not try to collect the note or do the proper reporting of cancellation of indebtedness after the effort failed, the government could go after the executor for taxes and penalties.
 

anteater

Senior Member
This is not unusual in a situation where there is a note to the beneficiary out there. The estate *must* try to collect the note, especially in a large estate but even in a small one, as there are tax ramifications to the indebtedness. If an executor, even where there is a single beneficiary getting it all, were to not try to collect the note or do the proper reporting of cancellation of indebtedness after the effort failed, the government could go after the executor for taxes and penalties.
Lots of storyline here, tranq. Brother, the PR, is suing peppylady to try to bring POD accounts into the probate estate (peppy is the beneficiary of the accounts) based solely on some nebulous "Dad really would not have wanted it that way and it just ain't fair" grounds. The Bro is using probate estate funds to pursue the case. Peppy would also inherit under the will.
 

tranquility

Senior Member
I've read those novels. I can see clearly now. Still, there is no prohibition of suit with the trust/estate paying the freight. Until the trustee/executor is sued for breach of fiduciary duty or malicious prosecution and loses. Then he needs to compensate the trust for the amount paid out and in some states a multiplier is possible.

But the answer to the specific question is no. They don't have to ask.
 

peppylady

Member
Thank you Tranquilty. I am paying for the lawsuit twice. LOL He will have to put all the money back it just seems so unfair. He might not even have the money to put back. Then the other heirs will be on him for it. Not my problem
 

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