When a loved one passes away, the executor named to manage their estate faces many duties. This process may require significant time and effort, and Georgia law recognizes that executors deserve fair compensation for their work.
However, when you see evidence of funds leaving the estate and going directly into the executor’s pocket, tension may quickly rise. Distinguishing between a legitimate payment and an improper withdrawal is essential to keeping the peace.
Understanding reimbursements and statutory commission
Executor payment usually falls into two types: reimbursements and commissions. Reimbursement means the executor used personal money for an estate cost and then paid themselves back from estate funds. This could include filing costs, postage, storage or repairs to estate property.
A statutory commission is payment the executor gets for managing the estate. In Georgia, the fee is usually calculated as 2.5% of all money received by the estate and 2.5% of all money paid out for debts, legacies, or distributive shares.
The issue is usually not that the executor received money, but whether the payment has a clear purpose. For example, paying back a filing fee with a receipt may look reasonable. On the other hand, taking a large withdrawal without a receipt or explanation could raise concern.
Red flags that point to probate disputes
You need to be aware of certain warning signs that something is amiss. These may include:
- Unexplained bank transfers
- Fees that do not follow statutory commission percentages
- Payments made without any supporting receipts
Clear records often separate a proper payment from an improper withdrawal. When an executor refuses to share receipts or gives unclear reasons for missing funds, the dispute may move into probate litigation.
Courts usually treat these concerns seriously. If an executor cannot support a payment with records, the court could require the executor to repay the estate for losses caused by a breach of fiduciary duty.
What you can do next
Before assuming wrongdoing, you may want to review bank statements, receipts and payment notes. Asking for a clear breakdown could help you tell the difference between poor recordkeeping and a serious problem. If the numbers still do not make sense, you may need to decide whether legal action is the appropriate next step to take.