Q: Who pays the balance of the attorney fees when an estate is insolvent.
There are not enough assets of the estate to cover the total attorney fees. Am I, the executor, responsible to pay out of pocket?
A: Yes, depending on the terms of the retainer agreement you made with your attorney, you are probably liable. I doubt that it provides that the fees you owe are contingent upon the estate having enough to pay the attorney fees.
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A:
When an estate is insolvent, the available assets are first used to cover necessary expenses, including attorney fees. These fees are typically paid from the estate's funds before any distributions are made to beneficiaries. If the estate lacks sufficient assets to fully cover the attorney fees, the unpaid portion usually remains the responsibility of the estate itself.
As the executor, you are generally not personally liable for the unpaid attorney fees as long as you have acted diligently and in good faith while managing the estate. Your primary duty is to administer the estate according to the law and the will, ensuring that all debts and expenses are handled appropriately with the estate's assets.
However, it's important to keep thorough records of all transactions and communications related to the estate. If there are concerns about how fees are being handled or if you face any legal challenges, consulting with a legal professional can provide guidance tailored to your specific situation.
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