The death of a parent is a difficult time, bringing out strong emotions and highlighting any family conflict. Add to that the distribution of assets, and there\u2019s the strong potential for family strife \u2014 even more so when the executor is not suited to the task.<\/p>\n
Consider the hypothetical case of Jessica from Minneapolis, whose father died four years ago. She was entitled to a percentage of the value of her childhood home, which was sold shortly after her father\u2019s death.<\/p>\n
At the time, the attorney said all beneficiaries needed to wait eight months before the proceeds of the sale would be disbursed to ensure no unknown creditors came forward \u2014 a process known as probate. This was double the legally required minimum notice period of four months in Minnesota. (1)<\/p>\n
Jessica\u2019s late father had no unknown creditors or debts, so his attorney sent a letter to Jessica\u2019s sister, who was executor of the will, to request an expedited disbursement. Jessica was asked to sign a release and then the funds were sent to her a couple of weeks later.<\/p>\n
Now it\u2019s four years later. In that time, Jessica\u2019s sister has failed to execute the terms of the will; stopped talking to the other beneficiaries; delayed the transfer of three other properties to her siblings; fired the original lawyer and exhausted the resources of the estate. Now she\u2019s asking Jessica to return almost half of her inheritance to help pay $60,000 in legal fees incurred during the disbursement of the other properties.<\/p>\n
Jessica feels that her sister has mismanaged the estate settlement process and doesn\u2019t want to pay. She argues that her part of the estate was already settled, including having the associated legal and probate fees deducted, and since she didn\u2019t benefit from the remainder of the estate, she shouldn\u2019t have to pay.<\/p>\n
Jessica is right that the process has been mismanaged. Aside from the mishandling of the disbursement of the other properties, disbursements before the end of the probate process are not best practice nor recommended, so Jessica should have been made to wait.<\/p>\n
It\u2019s best to have all affairs of the estate settled first, which includes paying any creditor claims against the estate, executor compensation, taxes and fees incurred to settle the estate, before making any disbursements.<\/p>\n
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Typically, inheritances are paid out of the value of the estate that remains after all the costs and claims have been deducted \u2014 what\u2019s known as the \u201cresiduary estate.\u201d<\/p>\n
In the case of this will, certain bequests were made in the form of specific properties, but if the estate is unable to pay all of its obligations, selling these properties to pay the bills would take precedence over the bequest.<\/p>\n
Unfortunately for Jessica, at the time she signed the release she probably signed a refunding bond as well \u2014 and this would legally compel her to give some of her inheritance back to help pay for the additional legal fees incurred in settling the estate.<\/p>\n
Read More: This is the quiet portfolio shift many wealthy investors are making in 2026<\/a>. Should you consider it too?<\/p>\n Jessica can afford to pay back the money out of savings she set aside for an emergency fund<\/a>, but paying it will set her back financially since she\u2019ll need to rebuild her emergency fund at the expense of her regular contributions to retirement funds.<\/p>\n She may want to work with her financial advisor to develop a plan to help recover from the loss of those funds.<\/p>\n Jessica could also choose to fight the request in court, as she already has a poor relationship with her sister. However, this could cost more than her sister is asking for, and the release and refund bond she signed could potentially limit her recourse against the executor.<\/p>\n Jessica may still want to consult a wills and estate lawyer to try having her sister removed as executor. Replacing her might help prevent further excess costs and finally lead to closing the estate.<\/p>\n It\u2019s not easy to remove an executor, but Jessica could argue that her sister should be relieved of her duties because of her inaction and the delay in dispersing of the three properties, her mismanagement of costs and her lack of communication and hostility toward the other beneficiaries.<\/p>\n To do so, Jessica would need to gather all probate documents, including the original will, as well as evidence supporting her argument for having her sister removed. She would then make a formal request to the probate court. The will may name a successor executor, but if it doesn\u2019t, the court may appoint one.<\/p>\n Settling an estate is a complex and time-consuming process. It\u2019s important that beneficiaries fully understand the implications of anything they agree to or any documents they sign.<\/p>\n Being an executor entails great responsibility and the person chosen should be prepared and competent to fulfill these duties. If not, beneficiaries may need to act.<\/p>\n Article sources <\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n