I have a Q similar to another one I saw listed here.
My Mother received money from a trust. When she died the trust said they had overpaid her by $66k.
When we went to probate our attorney said that the trust needed to file a claim with the court for that money. They didn't file any kind of claim and so when probate was closed, my attorney said that the estate didn't need to repay anything. He also told me not to communicate with the bank managing the trust.
The trust folks have now contacted my attorney saying that they do, in deed, have legal basis to collect.
Now my attorney says that we can I) pay the trust back, ii) suggest a settlement, or iii) sit tight and see what they do (sue? put a lien on my Mom's old house?). I don't know why he'd say that? I thought the money legitimately belonged to the estate.
Did my attorney give me sound advice that the trust has no claim? Is the trust is just blustering hoping to get something or was my attorney off base?
Any comments would be appreciated.
This is in MN if that matters.
When did Mom receive the trust and what kind of paperwork was there? Was there a long time between receiving it and her passing. Like lets say a year or more. Because, any company I have worked for had in house accountants and outside accountants. Any mistakes made will be caught by one or the other. 66k is a big mistake. It should have been caught at the end of the year or beginning of the next when the accting is done for taxes. Why when Mom passed did u hear from them. And as a bank, they have lawyers and those lawyers are very aware that claims have to be made on the estate to get their money. That means supplying proof. Not sure if this is done anymore, but did you post in any newspaper that Moms estate was in Probate and any creditors or claimants need to file a claim by a certain time? Because if they don't and probate closes showing all debts have been satisfied, the creditors can not put in claims after the fact. Well, the can but your not obliged to pay.
Nerve racking yes, but I think I would just wait and see what happens. Since the bank was aware of Moms passing and that there was now an Estate to deal with, they also knew they needed to put in a claim and they did not do it in a timely manner. Something their lawyers should have been on top of.
Please do update us. We learn from others.
Truth is, I'm not especially confident about my attorney. Your right, this is an odd place to post my Q. I'd noticed something similar elsewhere on the forum so was essentially looking for a sounding board.
Yes - I think I'll engage another attorney so I can feel more confident in my decision making.
Thanks again.
As your attorney has told you that they have (apparently) legally now made this claim in a timely manner (he was right, imho, that they may not have and it was worth a try sitting tight).
He has given you your options.
These options SOUND to me like very valid choices.
You can reopen the probate with the state (not hard for your attorney), pay back the overpayment
OR
You can instead say the estate is closed and you want to negotiate a settlement (through your attorney )
OR
You can wait and see if they file in court and place a lien which would be paid at time of sale of the house.
You have hired an attorney.
HE/SHE knows the laws of the state and that is why you hired him/her.
You have options.
Pick one. They all sound valid.
Paying is easiest and quickest, but there is a small chance they won't pursue this.
Given the amount it is my opinion they WILL pursue it. Then you spend on the attorney for defense in a court case.
Up to you.
If you don't "believe" this attorney (and I can't imagine why you would not) then hire a second opinion, but of course the estate will pay for THAT as well.
Good luck. File this under "It's always SOMEthing" and "Happy New Year."
I wish you the best.
Seek a second opinion from an actual attorney in your state for solid, professional advice.
Did your lawyer, in writing, tell the bank that they needed to file a claim against the estste by a certain time? If so and they didn't, then the bank is at fault IMO. They needed to prove to your lawyer that they overpaid. Why should you pay back something you have no proof of on just their say so. I think ur lawyer is just giving you options. I think I would just sit and wait and see if it goes to court. Someone might just be trying to cover their tail and is just bluffing. If it goes to court, ur lawyer can testify that he told the bank they had to file a claim and when not done in an appropriate time, probate was closed. Seems funny the bank came after Mom after she died. The money could have been spent before her death and then they would have been up the creek without a paddle.