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 annul the Will or remove a liquidator from the office? Basically, what if the lawyer’s services are provided in a case with an inner conflict within the Estate?
Estate lawyer fees?
The general rule is that the Estate pays for its lawyer. When legal advice is sought or litigation is brought by an “outside” person, this seems clear and intuitive. For example, a lawyer is hired to sue a debtor of the deceased person or to defend against a creditor. Alternatively, the lawyer might be needed to prepare necessary documentation.
Yet, there might be situations where that debtor or creditor is one of the heirs. What if a widow or 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? Perhaps the granddaughter borrowed the money from her late grandfather, while both her father and herself are now among the heirs. Additionally, what if there is a charity named in the last Will, and the other heirs contest this bequest? Lastly, what if several heirs pretend to have the same piece of property, like an old painting or some jewelry?
Who is to pay?
Also, some heirs could choose to contest the Will itself if the previous Will was more beneficial to them, for example. They could go against the liquidator, possibly because of gross negligence. There might even be a dispute among several liquidators. And so on, there are plenty of examples.
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. Since the same person might be the liquidator and a debtor or creditor of the Estate, some part of the claim could go against the liquidator personally. This would not be against the Estate itself. In such a case, it is not the Estate who should pay for that part of the work. Normally, in this 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 acts abusively, negligently or, worse, 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. Particular facts are important to make the 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].
