While it is a common practice in the drafting of wills for the testator to waive accounting and inventory in the probate of the estate, that does not mean the other beneficiaries lose the right to object to the mismanagement of the Estate. In Estate of Thomas: Thomas v. Thoms et al., No. 2008-CA-00462-COA, the will contained a similar waiver of accounting. However, when the executor filed his Petition to Close Estate and Discharge Executor, his siblings objected, alleging maladministration of the Estate. The Court ordered the Executor to file an inventory and accounting. Following a trial on the matter and a lengthy review of the accounting the Court surcharged the Executor $267,477.41, representing the amount of expenditures for which the chancellor could not determine the purpose of the expense. In its findings, the Court gave a detailed account for those expenses listed in the accounting for which the Executor had established a legitimate estate purpose. However, there were other expenses for which the Executor’s records did not contain a purpose for the expense:
The Court will not make further assumptions about the purpose of the remaining checks written on the Estate’s checking account given the complete incomprehensibility of the so-called accounting and the amount of time and the number of opportunities had to prepare an accounting.
The Chancery Court further stated:
The Court has painstakingly gone through the so-called accounting filed by the Executor and the copies of the more than 1,200 checks written by the Executor on the Estate’s checking account, most of which contain nothing whatsoever on the “memo line.” The Court is asked by [John] to approve his so-called accounting, but to do so would be to approve the unknown; what was the money spent for and where did it come from. The Court cannot approve such an accounting.
The Court of Appeals of Mississippi upheld the chancellor’s decision. Executors and probate attorneys should take note. Even in seemingly simple probates, it is important to keep detailed records regarding expenses. Use that memo line!
Tags: Accounting, Court of Appeals of Mississippi, Executor, Probate