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Does a lawyer have the right to pay himself with money that belongs to an estate w/o the consent of the Persoal Representative?
Scottsdale, AZ
Viewed 34 times.
Posted 5 months ago in Probate
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I'm the Personal Represenative for a relatives estate. I and only I have access to the estate account. I was waiting on an insurance check to pay estate bills and complete some repairs on one of the estate's properties. I receive a letter stating that the check was hand delivered to my attorney over a month ago. Along with a copy of a receipt for the check with my attorny's signature on it.
When I was able to finally get ahold of my attorney he stated that he opened a trust account and deducted his fees. He then asked me how much I thought I might need and told me it would be a few days but he could probabaly make that happen and then rushed off the phone. This doesn't seem right. Does it? Why all of a sudden is he handling the estate's money. Is this ethical? Answers (2)
Aaron Roy Feldman
This attorney is licensed in California.
Posted 5 months ago.
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The check should have been issued to the Estate or possibly jointly to the Estate and to the Attorney and the Attorney should not have opened up any accounts without your knowledge and consent. Did the attorney represent the Estate in settling the claim? Was the attorney entitled to a fee (contingency fee or otherwise) for these services. This raises a red flag in my opinion.
Unless there are estate costs that the attorney will incur, the money should be under your control. I would make a written demand for a release of the insurance funds and a complete accounting of any fees and costs deducted. If you do not receive a timely response, then you should make a complaint to your State Bar. 
Paul E Deloughery
This attorney is licensed in Arizona and 2 other states.
Posted 5 months ago.
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First, let me put this in some perspective. I am a probate attorney with ten years experience. I have tried both methods of assisting in the administration of estates/trusts -- both having the PR totally manage the estate funds, and having my office bookkeeper handle the funds. I have found that it is preferable for the law firm to totally handle the funds. By handling the funds, we are in control of paying creditors who need to be paid and denying claims for creditors who don't get paid. Also, preparing the final accounting is much easier if my office bookkeeper is familiar with what has been going on the whole time.
That being said, there are some miscommunication (and possible ethical) issues going on in your case. If the attorney was going to keep the check, he should have obtained your consent ahead of time (or told you that is the way he administers trusts). The funds belong to the estate, and your attorney needs your approval before paying himself out of the estate funds. I suggest switching to another law firm who is more familiar with estate administrations. Paul Deloughery, paul@delougherylaw.com. (This email does not create an attorney-client relationship, and this response does not constitute legal advice unless and until you sign a fee agreement with me.) |
