What to Know About Contesting an Estate Accounting
Estate accounting errors can occur for innocent reasons or because of purposely misleading information. Today, we discuss what can be done to address estate accounting issues and how to contest incorrect accounting information.
What Is an Estate Accounting?
An estate accounting refers to all the financial details related to an estate of the decedent that has gone into probate. This information comes in handy during the probate process. The amount of detail required varies by state, and it is gathered during the probate process to determine what goes to beneficiaries. It is also used to determine what needs to be paid toward tax obligations and what has to cover various debts.
The executor named in the decedent’s will can do the accounting, or it can be done by a professional accountant. Even if the accounting is done by a third party, there may still be errors or oversights.
Why Contest an Estate Accounting?
The reasons to contest an estate accounting include but are not limited to:
1. Inaccurate figures based on what you compiled yourself
2. Doubts about the stated value of certain assets
3. Clear inaccuracies, such as over-inflating the value of certain items or decreasing the value of certain holdings or belongings
4. Accounting that’s done in a way that favors the executor over other family members if the executor is also a relative
5. Accounting that’s done in a way that avoids listing certain assets to minimize the overall value of the estate or incorrectly classifying estate holdings in a way that benefits the executor
Who Can Object to an Estate Accounting?
Anyone with a potential interest in the estate can object to the accounting. This list may include creditors, other family members, banking examiners, or investment professionals with concerns about the listing estate value. Accordingly, they may be entitled to perform what is termed discovery to determine if there is enough evidence to proceed with court-related matters pertaining to an estate’s accounting.
What the Court Can Do
The probate court can intervene by reviewing accounting documents. If errors are found, they may have a third-party accounting firm not directly related to the estate perform a new assessment of all estate holdings. If discrepancies are significant enough, the estate’s executor may be relieved of their duties or face possible charges of fraud.
What the Executor Can Do
If the executor believes they are being treated unfairly or that the charges of fraud are inaccurate, they may take legal action against whoever made the accusations. This is an extreme situation.
More often than not, an executor who believes they are being unfairly accused may introduce new evidence, such as receipts and updated accounting information or new accounting figures that match what was included in the financial documents related to the estate.
What You Should Do When Contesting an Estate Accounting
Make sure you are justified in your allegations. Gather as much evidence as possible to make your case. This may include bringing in witnesses or experts. Witnesses may include other family members who knew about estate irregularities or those who also have concerns about the figures.
If possible, it can be helpful to have your figures in front of you to demonstrate or show examples of accounting oversights or irregularities. Determine if your loved one may have been unfairly persuaded to agree with the executor about the value of the estate in an inaccurate way when they were still alive. In rare instances, there’s documentation showing or suggesting that the decedent changed the estate details at an unusual time or in a way that suddenly favored the executor.
Contact a New Jersey Estate Litigation Lawyer Today
Reach out to a New Jersey estate litigation lawyer from The Knee Law Firm in Paramus to learn more about contesting an estate accounting. Call us at 201-996-1200.