Problem with "executor"

[Rana]

What is the name of your state? California

Ok here's the deal. My Grandfather died in Sept. He left a life estate to his wife but she's leaving so the house is turned over to the estate and thus his 4 children for the contents to be divided up and sold and then the house to be sold. Here's the problem, my grandfather a few months before his death re-designated my uncle (the bad seed) as executor of the trust and he has began to overstep his boundries. He's a real estate agent and lives in Sacramento (we live in the LA area) he's decided that he should be the one to sell the house and receive the 6% commission for the house and not split that anyway within the estate. He also has mentioned that he can (as executor) take 6% of the total value of the estate for himself as p[ayment for being executor. The living trust mentions that the executor can be reimbursed a "reasonable amount" for work done with regard to the estate but 6% seems slightly elevated and the other three children are beginning to wonder what their real rights are.

My grandfather's wife has not yet left the property and he has already sent realtors to view the property and my question does my mother and other brothers have to allow him to sell the property as realtor or is there really a conflict of interest there? AND, should he receive 6% of the total estate for his "work" on the estate? AND, is there a way to stop him from selling the property to the lowest bidder just so he can get out from under the property and get his money as fast as possible? Does he have a right to do this or do all of the children have a say in how it should be handled?

I'm really curious as to where rights begin and end in this type of situation.
Thanks in advance,
Rana

 

[seniorjudge]

If you think the administrator of an estate is doing something bad, then you should write a letter to the judge of the probate court where the will is being probated. Tell the judge that you think the executor is misbehaving and explain why. Ask that your letter be considered as a motion to fire the executor and appoint a new one. Ask that you have a motion hearing as soon as possible. Ask that you be notified as soon as possible about when your motion hearing is.

Send a copy of that to the person you want to fire.

Expect a big **** storm.

 

[Rana]

Thank you. I guess before that I want to know how much "power" an executor has. I mean is he entitled to sell the house through his real estate license and get the commission even if the other beneficiaries disagree and what about taking 6% out of the total estate for his services as executor...isn't that kind of steep?

Another thing, since this is a living trust, we aren't going to probate so I'm not sure if that matters at all.

Rana

 

[seniorjudge]

Thank you. I guess before that I want to know how much "power" an executor has. I mean is he entitled to sell the house through his real estate license and get the commission even if the other beneficiaries disagree and what about taking 6% out of the total estate for his services as executor...isn't that kind of steep?

Another thing, since this is a living trust, we aren't going to probate so I'm not sure if that matters at all.

Rana

I withdraw everything I said.

The more you clarify, the more I get confused.

Trust or probate estate? Or both?

I have no idea what to tell you....

 

[Rana]

I figured you must have thought that there was probate but that's the whole reason my grandparents chose a living trust so that they could avoid probabte for their children.

It's the "abuse of power" that my uncle (as executor) seems to be doing. Let me clarify:

He wants to sell the home quickly at any price without fixing it up for more money and he lives in Sacramento (not near us nor the house).

He wants to use his own real estate license to list the house and receive 6% for listing it and will not split that money with the family (which might be his right) but also will not allow the others to decide if they want another realtor to list it closer to home. For example, my grandfather's wife leaves on the 30th of this month, he'd like to sell it the next day without regard for price or time of year or fixing it up or anything. It's JAn. house market is low in So.Cal. It would be best to wait until at least March to increase the value of the home and benefit all of the beneficiaries, his greed won't agree to that and my mom and uncles are confused of how much say they get.

He ALSO wants to (at the sale of the property and selling of all other items) take 6% of the total estate "for his hard work" which hasn't been much work at all. The living trust basically speaks for itself.

He's being greedy and it seems unfair to the other children listed as beneficiaries in the living trust. My real question is in this type of situation how many rights to the other children (not just the executor) have in overseeing what happens with the estate.

I hope that clarified a bit.
Rana

 

[seniorjudge]

"Executor" is not a term used with a living trust.

Anyway, if it is a trust, you certainly need to get a lawyer to sue whoever you think is doing you wrong.

 

[Rana]

I cannot believe that. It says that it's the Living Trust for "Jon and Jane Doe" and refers to the executor of the trust throughout. There is a will inside of the trust but that does not need to go to probate. That's the whole reason for having a living trust instead of a straight will I believe.

The trust itself is simply for implying how certain items be handled like any provisions about the property and such. The will inside gives all of the assets to the children the trust implies how that be carried out. Thus no reason for probate. However, this trust was written quite vague and my sole reason for inquiry is to wonder if anyone know anything about "abuse of power" by the "executor" of this trust and with the examples I have given before, if there is anything we can do.

Rana

 

[Rana]

I apologize, the executor part is for the will. But does that mean that he has no "power" over the trust and how it be executed.

Thanks
Rana

 

[seniorjudge]

I apologize, the executor part is for the will. But does that mean that he has no "power" over the trust and how it be executed.

Thanks
Rana

There is no way anyone on this forum can answer your questions because to answer your questions, we would have to read the trust and will.

 

[Rana]

Here let me simplify:

How about this way...is an executor of any will within a living trust entitled to 6% of the total estate for work done on that estate?

Oh and here's a new question:

If there are money accounts that have been liquidated and the "executor" has the money and says he cannot divide the money until all tax issues are taken care of does he not have to (by some law) show the other trustees proof of those moneys and amounts and such? The reason I ask is because we believe he might not be dividing this money up amonst the other siblings because he's taken it and invested it hoping to make gtreat returns for himself. He might have even lost the money in an investment gamble in Mexico. Do we not have the right to ask for proof of the accounts for this money since it is ultimately ours?

Thanks
Rana

 

[seniorjudge]

"...How about this way...is an executor of any will within a living trust entitled to 6% of the total estate for work done on that estate?..."
That depends on a whole lot of variables: how much the person has done, what the trust says, what the state staute says, what the court says, etc.


"...Do we not have the right to ask for proof of the accounts for this money since it is ultimately ours?..."
Yes. It's called an accounting.

 

[Rana]

The trust says he can take "a reasonable amount for his services." My grandfather has only been dead since Sept. and really not much has happened. My mom was beneficiary on one account and she already got the money and dispersed it amongst the siblings.

and as far as "the accounting" must he give that immediately if we ask or can he continue to sidestep the issue?

 

[seniorjudge]

You need a lawyer.

Soon.

To protect your assets.

 

[Dandy Don]

You are being premature with your complaints with no specific evidence of any wrongdoing of his. Wait until he provides the accounting to review his actions to see if anything is improper or not. His actions so far have been within the scope of an executor's duties.

If he is a licensed real estate professional, then he is entitled to the commission if he sells the home (you'd have to pay the same fee to any other real estate agent who did the same thing!). Trustees and executors are compensated at different rates, and the work of a trust is separate from the work of the estate, so you need to be consulting with a local trust or probate attorney to find out what a reasonable rate would be.

DANDY DON IN OKLAHOMA ([email protected])

 

[curb1]

Is the "bad" uncle also a co-trustee of the trust? Who are the trustees of the trust?