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Investment Funds from Estate (LONG)

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tribes2

Junior Member
What is the name of your state? Pennsylvania

My mother passed away, leaving everything to my brother and I. My brother is going to stay at my Mother’s home until the end of the summer and then we will sell it. Before we met with the attorneys to discuss the will, I contacted my Mother’s investor and asked to have the account closed. They informed me once I sent a death certificate to them they would have a check cut to my brother and I since my Mother had made us both the beneficiaries of the account. 2 weeks after her death we met with the attorneys and they were told about what I had done with the investment account. My brother and I signed a paper to have all bills sent to the attorney and they would handle that part of it. They said they charge 5% for estates. We signed a paper to have my Mother’s credit union account closed and the check sent to the attorney to pay bills. Weeks went by and my brother got some mail that the bills weren’t being paid. We contacted the atty. And they said they hadn’t got the credit union check yet! They asked us to personally go to the bank and ask to have the account closed.
The credit union said they hadn’t gotten anything yet. Anyway we got it closed and the check to the law office. Now, almost 2 months after my Mother’s death I received the check for the investment fund and I’m wondering what to do? Do I turn it over to the attorney? Cash it and split it 50/50 with my brother?
We don’t want the atty to get it because what have they done for us to just be given 5% off of that investment? I can see getting 5% of the home sale if they want because they had an appraiser come out, but that is all!! They know about the investment fund, but never called the investment office to have a check sent to them. Do I have to turn it over to them?

Thank You!!
 


anteater

Senior Member
1) If both you and brother were designated beneficiaries on the account, I don't understand why the investment firm did not send two checks, one to you and one to brother. In any event.....

2) The proceeds from the investment account are not part of the probate estate since the account had designated beneficiaries. You apparently hired the law firm to handle the probate estate. The investment account proceeds are not part of the probate estate. Therefore, there is no reason to give the check to the law firm.

3 What does the retainer agreement that you singed with the law firm say about the basis for their charges?
 
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Dandy Don

Senior Member
So there may not be any future tax consequences, you may want to consider asking the company that sent you the check why they named only you as payee. You should consider returning it to the company and asking them to reissue the check naming both you and your sibling as payees so that you can both sign it and cash it in.

If the attorney can not cite state law that requires the investment account money being added into estate assets, you should not put in in there.

If you are implying that the attorney is also serving as executor, you need to do some research to find out what the exact fee rate for executors is in Pennsylvania to determine whether the 5% fee is reasonable or not. State law may show it as being defined only as "reasonable compensation" which may give them leeway to charge whatever they want.
 

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