Who pays for an Estate lawyer’s services? The answer seems to be quite intuitive: An Estate hiring a lawyer should pay for the services.
But what if the heirs wish to to annul the Will or to remove a liquidator from the office? Basically, what if the lawyer’s services are provided in a case witn an inner conflict — within the Estate, so to say?
Estate lawyer fees – who is to pay?
The general rule is that the Estate pays for its lawyer. When a legal advice is sought or a litigation is brought by an “outside” person, this seems quite clear and intuitive: a lawyer is hired to sue a debtor of the deceased person or to defend against a creditor, to prepare documentation necessary, etc.
Yet, there might be situations where that debtor or a creditor is one of the heirs. What if a widow or a widower of the deceased person, being an heir, also claims his or her share in the family patrimony? Or what if the deceased, during his lifetime, borrowed money from his nephew, who is now an heir? Or what if the granddaughter borrowed the money from her late grandfather, while both her father and herself are now among the heirs? Or what if there is a charity named in the last Will, and the other heirs contest this bequest? Or what if several heirs pretend to have the same piece of property, like an old painting or some jewelry?
Also, some heirs could choose to contest the Will itself, if the previous Will was more beneficial to them, for example. Or they could go against the liquidator (because of, for example, gross negligence), who is one of the heirs. There might be a dispute among several liquidators. And so on — examples are plenty.
So, who pays for the Estate lawyer then? The general rule still applies, if the services are provided to the Estate (basically, to the liquidator, acting on behalf of the Estate).
Yet, there might be exceptions. As the same person might be the liquidator and a debtor or a creditor of the Estate, it is not uncommon that some part of the claim goes against the liquidator personally, not against the Estate itself. In such a case it is not the Estate who should pay for that part of the work. (Normally, in such a situation there should be separate lawyers for the Estate and for the liquidator personally, but this is not always the case).
Also, if the liquidator is acting abusively, negligently or, worse even, fraudulently, the Court might eventually hold such a liquidator personally liable for the legal expenses.
All in all, if you face such a situation, it would be a good idea to consult your lawyer, as particular facts are important to make a right decision.
Allen Madelin Lawyers work on daily basis with Wills and Estates issues, consulting the clients and representing them in Courts. For details, please contact us by phone: 1 514 904 4017 or by email: [email protected].
