Question of Ethics

[Terry D EA]

In this case I would probably accept the brother's (fiduciary's) permission. If you don't see the will, how else can you verify the person who claims they are a beneficiary really is? The will was used as an example in the IRS manual. I suppose any letter from a probate court or other legal document showing who the beneficiary(s) are would also be a means of verification.

[easytax]

In today's litigious society and because -- your nemesis is almost always someone you know and deal with (the always a stranger will cause problems --- is not really the case). The better your procedures to automatically "protect yourself" (and business) the better.  Exceptions can cause problems --- that is what standards and procedures are for - to mitigate those problems.                       Typically you are more vulnerable from a friend or family because you "typically" would not let someone else that close, so they could cause problems.

I would also accept the brothers (fiduciary's) permission --- providing I knew them for more than this season, etc.   If they were new this year or such, I would still request written proof (such as a letter, note signed by them) that they had the authority, etc. and did authorize the sharing of information. 

Even knowing the above, my own naiveté gets me in trouble most times. 

 

[Cathy]

Louisiana:

Well, it looks like we might be ahead of the game on one thing at least!  

In Louisiana, we have what is called either:  Independent Executors/Administrators, or just plain Executors or Administrators.  The difference between the two is to allow the family to avoid costly probate expenses by the "Independent Executor" taking care of most leg work, etc.  The Independent Executor can be a member of the family or someone they trust to do the work, thereby saving on attoryney fees, etc...

 

If the will does not specify an "Independent" Administrator/Executor, then the heirs can all get together and appoint one, if they so choose.  Once a Judge signs off in court on the appointment, the "Independent" Administrator/Executor, can completely handle the succession from there with a notary certifying his/her signature as being genuine in certain situations.

 

Again, the law was established to help save families $$$$.   What I see happening now is attorneys are sitting back and after letting the estate's "Independent" Executor do all of the work, the attorneys are still charging the same fees as if they would have if no "Independent" Executor existed for the estate.

 

And who said attorneys aren't crafty????????????  Time permitting, I'll take a look at what legislator authored the bill...willing to bet it was an attorney!  Can't wait to listen to the committee hearings as well.  That should prove to be Comedy Central at it's finest!