Legal Question in Wills and Trusts in North Carolina
Can an executor of estate that owns a construction Co. legally continue to contract unneeded repairs on property to himself after 5 years and not listing any property for sale yet? 5 houses total in estate and he has renovated them all and paid himself to do so. NC
1 Answer from Attorneys
First, anything that is not a crime is legal. If the homes genuinely need repairs and if the charges for the work are reasonable and the work was, in fact done, while it smacks of self-dealing the truth is if the work would have to be done anyway, then I don't necessarily see a problem if all the documentation exists to support the fact that the properties if fixed will bring more value to the estate and the properties have to be sold to pay claims.
I do have a problem as to WHY it is necessary to fix the properties and why it has taken 5 years. That is not the executor's job unless it is necessary to sell the properties to raise cash for the estate to pay debts. Executors cannot keep estates open indefinitely and the clerk's office should be all over the executor as to why the estate is open after this much time.
What does the will say about the authority of the executor to deal with the property? Who are the beneficiaries of these properties? Why doesn't the executor, if there are sufficient assets in the estate, just distribute the property to the beneficiary? What claims are there against the estate? Why has this been going on for 5 years?
If you or others are the estate beneficiaries, then I suggest that you see a probate lawyer who practices in the county/state where the estate is pending. Make a copy of the estate file. What is there? There should be a will, inventory, notice of publication to creditors and accountings filed for each year the estate has been open. The inventory should disclose what assets are in the estate and provide an approximate listing of value. Also, if any claims have been filed, they should be in the estate folder unless they were just filed with the executor directly (NC allows this; personally, I think it is better practice to file with the estate AND the executor). Pay the attorney to review the will and estate file. Is the executor doing his job properly? If nothing else, the lawyer can write a letter to the lawyer to tell him to complete the administration and distribute assets. If the executor has not done his job correctly and has misused estate assets, then the beneficiaries can seek to remove the executor and go after him for reimbursement if it turns out he has illegally helped himself to estate funds/property.