can a co-owner get reimbursed for expenses?

[DJ44]

What is the name of your state? Florida

I posted a longer version of this in the probate forum. Inherited house. Summary administration, probate completed. I was named PR/executor in will but not appointed by the court because there is not a court-appointed PR/executor in summary administration. From the time of parent's death and continuing even now (total of 15 months), I have paid 100% of all house/estate-related expenses including funeral, burial, HOA fees, taxes, insurance, utilities, etc....which has totaled around $56k - again, totally my money, not the estate as there is no estate account. Other beneficiary who is supposed to get 50/50 split of all assets (the house) has paid $0. Literally nothing. My question is - how can I go about getting reimbursed for the half of all those expenses that I shouldn't have had to pay? In other words, when the house is sold, how would I go about having that money deducted from the other beneficiary's net proceeds? Can it be done?

 

[Zigner]

What is the name of your state? Florida

I posted a longer version of this in the probate forum. Inherited house. Summary administration, probate completed. I was named PR/executor in will but not appointed by the court because there is not a court-appointed PR/executor in summary administration. From the time of parent's death and continuing even now (total of 15 months), I have paid 100% of all house/estate-related expenses including funeral, burial, HOA fees, taxes, insurance, utilities, etc....which has totaled around $56k - again, totally my money, not the estate as there is no estate account. Other beneficiary who is supposed to get 50/50 split of all assets (the house) has paid $0. Literally nothing. My question is - how can I go about getting reimbursed for the half of all those expenses that I shouldn't have had to pay? In other words, when the house is sold, how would I go about having that money deducted from the other beneficiary's net proceeds? Can it be done?

Assuming everything else is in order, it should be pretty straightforward. You pay yourself, then split the remaining proceeds 50/50.

 

[DJ44]

Assuming everything else is in order, it should be pretty straightforward. You pay yourself, then split the remaining proceeds 50/50.

But how? Would there need to be litigation? How would it actually work when it comes down to actually doing the math and getting the money? Is a court involved? Just a real estate attorney? Does it go back to the probate court?

 

[Litigator22]

What is the name of your state? Florida

I posted a longer version of this in the probate forum. Inherited house. Summary administration, probate completed. I was named PR/executor in will but not appointed by the court because there is not a court-appointed PR/executor in summary administration. From the time of parent's death and continuing even now (total of 15 months), I have paid 100% of all house/estate-related expenses including funeral, burial, HOA fees, taxes, insurance, utilities, etc....which has totaled around $56k - again, totally my money, not the estate as there is no estate account. Other beneficiary who is supposed to get 50/50 split of all assets (the house) has paid $0. Literally nothing. My question is - how can I go about getting reimbursed for the half of all those expenses that I shouldn't have had to pay? In other words, when the house is sold, how would I go about having that money deducted from the other beneficiary's net proceeds? Can it be done?

Just whom or what do you believe is liable to reimburse you for your mentioned expenditures?

The only visible candidates are the unidentified "other beneficiary" (obviously your sibling) and/or the sibling's distribution of part of the estate pursuant to the order of summary administration.

Any cause of action resulting from the siblings alleged misappropriation of the said $45K would have accrued to the mother, and not to you.

Had you sought plenary administration of the estate, rather than the abbreviated method - THEN acting in the capacity of PR you might have successfully pursued a claim against your sibling on behalf of the decedent's estate to recover/or compensate for the alleged theft of mother's assets.

HOWEVER, because an election was made to petition for summary administration of mother's estate (F. S. 735.203) and the apparent (assumed) failure to list yourself as a creditor of the estate (F. S.735. 206) you effectively waived and precluded yourself of any right to seek reimbursement from an asset of the estate prior to distribution.

 

[Litigator22]

Assuming everything else is in order, it should be pretty straightforward. You pay yourself, then split the remaining proceeds 50/50.

Did you take notice that the estate has undergone or is in the process of undergoing summary administration? Because what you propose is not feasible under the circumstances.

It mistakenly presumes that preliminary to the issuance of an order for summary administration and distribution of small estates property in the estate can be sold for the purpose of providing a source of funds used in the payment of administrative expenses and creditor's claims. But it doesn't work that way. Such detail would defeat the very time and cost saving purposes of summary administration.

Much is left to the imagination in making sense of some of Florida's statutory law. Suffice it to say that the process of initiating summary settlement of mother's estate would have required the petitioners (the OP and the other unnamed beneficiary - clearly the OP's sibling) to do a reasonable search to ascertain and list all known bona fide creditors of the decedent. And "to make provision for the payment of their claims to the extent that assets of the estate are available". (F. S. 735.206)

Now I don't believe I'm stuck on a very long limb by predicting that in no way did that formal petition to the Florida court seeking summary administration and distribution of mother's estate name the OP as bona creditor of the estate! Much less making provisions for its payment.

 

[DJ44]

Did you take notice that the estate has undergone or is in the process of undergoing summary administration? Because what you propose is not feasible under the circumstances.

It mistakenly presumes that preliminary to the issuance of an order for summary administration and distribution of small estates property in the estate can be sold for the purpose of providing a source of funds used in the payment of administrative expenses and creditor's claims. But it doesn't work that way. Such detail would defeat the very time and cost saving purposes of summary administration.

Much is left to the imagination in making sense of some of Florida's statutory law. Suffice it to say that the process of initiating summary settlement of mother's estate would have required the petitioners (the OP and the other unnamed beneficiary - clearly the OP's sibling) to do a reasonable search to ascertain and list all known bona fide creditors of the decedent. And "to make provision for the payment of their claims to the extent that assets of the estate are available". (F. S. 735.206)

Now I don't believe I'm stuck on a very long limb by predicting that in no way did that formal petition to the Florida court seeking summary administration and distribution of mother's estate name the OP as bona creditor of the estate! Much less making provisions for its payment.

Let me use different, hypothetical examples.

1. Mom has 100k in the bank. She has 2 children who are her beneficiaries who are to split 50/50 her assets upon death. Beneficiary 1 steals all 100k prior to Mom's death leaving nothing to be inherited in the estate. Beneficiary 2 knows about this and can prove it. What is Beneficiary 2's course of action?

2. Mom has died and left only her house to her 2 children, to be split as equal co-owners. From the time of Mom's death, Beneficiary 1 has paid 100% of all expenses - funeral, burial, HOA fees, property taxes, homeowner's insurance, utilities, repairs, and all other various house-related expenses but Beneficiary 2 has paid zero. Both beneficiaries want to sell the house. How can Beneficiary 1 be reimbursed for Beneficiary 2's share of ownership costs for the inherited house?

 

[Litigator22]

Let me use different, hypothetical examples.

1. Mom has 100k in the bank. She has 2 children who are her beneficiaries who are to split 50/50 her assets upon death. Beneficiary 1 steals all 100k prior to Mom's death leaving nothing to be inherited in the estate. Beneficiary 2 knows about this and can prove it. What is Beneficiary 2's course of action?

2. Mom has died and left only her house to her 2 children, to be split as equal co-owners. From the time of Mom's death, Beneficiary 1 has paid 100% of all expenses - funeral, burial, HOA fees, property taxes, homeowner's insurance, utilities, repairs, and all other various house-related expenses but Beneficiary 2 has paid zero. Both beneficiaries want to sell the house. How can Beneficiary 1 be reimbursed for Beneficiary 2's share of ownership costs for the inherited house?

First hypothesis:

(a) Beneficiary #2 has no legal recourse against beneficiary #1. (No more than if beneficiary #1 had embezzled $100K from his employer.)

(b) Mom's estate has a cause of action in tort against beneficiary #1.

(c) However, estate claim cannot be pursued when beneficiary #2 foolishly agrees to petition court for summary administration.

Second hypothesis:

(a) How come beneficiaries switch hats?

(b) See (c) above