A few days ago, I received a disturbing email saying that I had no standing to voice my concerns about the passing of accounts (this is a requirement if a trustee decides she wants to be free of liabilities she administered). This lady lawyer quoted me the legislation.
Death of Patient. AGA 24(3) After the death of the patient, the committee must provide the committee's accounts to (a) the executor or administrator of the patient's estate. The committee is the trustee who controls the money.
Sounds reasonable. One person should deal with the passing of accounts, efficiency. That person has to do the heavy lifting that is verifying that every expense is proper. If she approves the expenses she relieves the committee of future liability for paying unnecessary expenses.
The problem is that the administrator had conflicts. Prior to the administrator's appointment, she was the Patient's committee of person/caregiver while he was alive. Obvious conflict. Even a whisper of a conflict should have nullified the administrator's appointment. She should never have been appointed the administrator in the first place. But she was. Another story.
At this juncture, the committee wants distance from the estate, and the administrator is the only one who can test the committee's expenses. However, why would the administrator test the expenses as the expenses were at her discretion. She is not going to point out her self-dealing of estate assets. Conflict. All beneficiaries are excluded from the passing of accounts hearing.
According to the committee, the administrator is happy with the accounts.
And the only person who can sign off on the passing of accounts is the administrator. If she does not sign off/consent, then the court can. But how can the court can, it does not have an audit department.
So what can a beneficiary do if she suspects the administrator was using estate assets for her personal benefit. Nothing. The beneficiary has no legal standing.
The administrator consulted a multitude of lawyers, hired three. Not one of the multiple lawyers told her she was in conflict. Extraordinary. The administrator because of her limited education did not know she was in a conflict. But not telling her, then the trustee should shoulder 100% responsibility.
And the third final lawyer did an estate settlement agreement on the pretense that it would rush the probate, no mention of the proposed administrator having a conflict. The ESA said in exchange for the fast tracking the beneficiaries must forgo any occupation rent that the proposed administrator owed. That was no small change, 1.5 years at that time. Under fiduciary law, you cannot buy an administrator with free rent.
In the proposed passing of accounts package no mention was made of any rents accounts receivable. The committee (trustee) was responsible for collecting the market rents before probate. What does that say, it says the committee (trustee) owes the estate 1.5 years of rent. And if the court deems a "satisfactory accounting" as the administrator is happy with the accounts, the committee (trustee) is off the hook. The administrator is also off the hook as she does not have to pay the estate the 1.5 years of rent that she owes. The occupation rent claim vanishes. No beneficiary can complain to the court as none have legal standing to do so. Only the administrator has standing. The debt is wiped out. Neither the trustee has to reimburse the occupation rent to the estate, nor does the administrator have to pay it. Under the colour of law, the dirty deed is covered up.