Executor of estate is hiding info. Should I be concerned?

[Budatx]

I'm a beneficiary of an estate in Texas that was approved for probate in May 2021. A legally required document submitted by the executor and their attorney, dated March 2022, lists all assets and claims against the estate. Per the document, "no claims are due and owing to the estate." During a recent discussion on the progress of the estate, the executor mentioned that the decedent had a "huge debt" that they (the executor) were working on, but could not say anything else or talk about it. I reminded the executor that unless otherwise protected from disclosure, all estate and probate related records are public records. The executor acknowledged, but refused to provide any more info concerning the "huge debt." I chose not to challenge the executor, but I found this strange as they had just provided info concerning other aspects of the estate, i.e. sale of properties.

Should I be concerned about the executor hiding info. about the "huge debt?"

 

[pacergal]

I would be, if it was me.
Also would depend on my relationship to deceased and size of estate as to how much I would fuss/investigate it.
What would happen if you did choose to challenge the executor?

My sympathies on your loss.

 

[plsprius]

In this situation I would send the question to the estate's attorney. It could be that the executor is misunderstanding some aspect of the probate (e.g., the "huge" mortgage debt against estate property that will be satisfied by sale of the asset). Probate assets are usually listed at market value, and debts listed separately.

In any case, the estate's attorney should be able to answer this question easily. I would not worry about it until you have more information.

 

[daylatedollarshort]

"Huge debt" implies less money for the heirs. This could be a legitimate huge debt or a way of embezzling money from the estate. There does not seem to be any logical reason for the executor to not give you more information on this huge debt, so I would ask for an official accounting. Now. Before the money is gone.

 

[OldShooter]

If there is serious money for you coming out of this estate, I would spend the $hour to have my attorney write a letter to the executor's attorney asking for an accounting. @Budatx the civilian is easy to stonewall and blow off, but if @Budatx has an attorney that will give the executor and his attorney second thoughts. Maybe even start with just a phone call by the attorney.

 

[CRLLS]

I may be wrong. I believe that the only requirement is to give an accounting at the time of disbursement. It is common courtesy to keep all beneficiaries informed in generalities along the way. Any costs, including legal representation, income taxes, estates taxes, executor's charges, unexpected claims made within a number of months, cannot be determined until they are finalized. It takes well over a year to do this.

My brother was executor of my father's estate. I got no accounting whatsoever. Just a mailed check with no explanation when the estate was closed. I know there were some unseen shenanigans but just let it go.

 

[OldShooter]

I may be wrong. I believe that the only requirement is to give an accounting at the time of disbursement. ...

The situation the OP described is that the executor has told him verbally that a document filed with the court omits a significant liability of the estate. A sworn document, probably. This IMO is justification for the OP to formally inquire, possibly at some point involving the court that received the probably-fraudulent document.

 

[beanctr88]

Are you the only beneficiary? If not, how many are there and do they share equally? Is the executor a beneficiary too? Understanding this would shed some light on their motivation and how to proceed.

I have dealt with executors who were also inheriting part of the estate and there were shenanigans because they felt they “deserved” a bigger piece of the pie.

I agree with a phone call to the attorney and if the explanation is unsatisfactory a formal letter is in order. Especially if the dollars involved are significant and you are supposed to end up with a large portion of it. On the other hand, if it is just a few thousand dollars you might just ignore it.

We did this twice when relatives did not include my wife among the grandchildren who were to receive proceeds from her grandparents’ estates. It was not significant to our net worth and we decided that they would eventually be judged by someone far more important than us for their actions.

 

[ivinsfan]

I see in your profile you are male and from Texas ..IMO you should have kept pressing the exec by saying, that answer doesn't satisfy me continuing on to, I just had a question but your refusal to give me a clear answer is making me wonder what is going on and if you are hiding something.



Is there something to be concerned about ? the problem now is you don't know anything except that information is being withheld from you. It's not like you would work against the interest of the estate if you had this info. You are part of the estate.

 

[pb4uski]

I'm a beneficiary of an estate in Texas that was approved for probate in May 2021. A legally required document submitted by the executor and their attorney, dated March 2022, lists all assets and claims against the estate. Per the document, "no claims are due and owing to the estate." During a recent discussion on the progress of the estate, the executor mentioned that the decedent had a "huge debt" that they (the executor) were working on, but could not say anything else or talk about it. I reminded the executor that unless otherwise protected from disclosure, all estate and probate related records are public records. The executor acknowledged, but refused to provide any more info concerning the "huge debt." I chose not to challenge the executor, but I found this strange as they had just provided info concerning other aspects of the estate, i.e. sale of properties.

Should I be concerned about the executor hiding info. about the "huge debt?"

Did it say no claims due and owing to the estate as you wrote or by the estate?

Yes, I would be concerned assuming that the March 2022 list did not include this alleged "huge" debt. Perhaps their knowledge of the debt occurred after March 2022, but they should still be able to pre an explanation.

Start with the executor and the counsel for the estate and if you don't get satisfactory answers then ask the probate court for an explanation.

 

[Budatx]

Thanks everyone for your time and replies. Now, I believe I should have pressed the executor to provide satisfactory information regarding the "huge debt." Since I did not, I am considering the range of options offered, beginning with a call to the estate attorney, and if that doesn't work then ask our estate planning attorney to make a call and or send a formal letter. The letter would request complete details of the "huge debt" and an explanation as to why it does not appear in the Inventory, Appraisement and List of Claims submitted (and approved by probate judge) in March 2020.

 

[OldShooter]

Perfect. Good luck.