I was original guardian of my aunt’s estate but couldn’t handle the complex issues- past due taxes, nursing home care, etc. I tried my best but I was not qualified and had to have the court (Milwaukee) appoint an attorney as guardian. My aunt recently passed &the atty was able to settle her accounts/taxes/ & hearing is next week to ask the court to release him from the guardianship-but he claims he incurred legal expenses (his time) that he could not recoup from her estate. I signed a surety bond when I was guardian and he plans to ask the court to allow him (and another atty who assisted him)to seek fees of close to $12,000. The surety company informed me that if they have to pay, they will seek reimbursement from me. I CANNOT afford that. The atty claims I breached my fiduciary duties which is what the attorney is using to justify his asking for payment. I live in MD and my family finances are very limited. I don’t have the discretionary income that would allow me to fly to Milwaukee or to afford an attorney, though I did attempt to locate one through the Milw Bar Assc, but was not successful. I feel it’s because no attorneys want to legally battle one of their own. I feel as if I’m being penalized for trying to do the right thing by my aunt. I am writing a letter to the court to explain the circumstances and to ask to speak during the hearing by phone. Do I have a chance of getting the attorney fee that is requested reduced, or better yet - is there even a chance that the judge agrees that the fee is unfair so it’s dismissed? I feel the work that the atty did would have been no less intensive or complicated had he, or any other attorney been appointed as my aunt’s original guardian, as opposed to me. I made the decision to seek guardianship out of love for my aunt but had no idea what I was getting into because my aunt’s finances were in such disarray. Hoping for some responses. I am in total panick mode.
Find paperwork on the surety bond you did when you were guardian.
Bonds usually cost a % of value. Our kid had to get a bonded title on a car (bad title, CL nonsense, don’t ask... & yes it was a character building experience for him & his wallet) & amount he had to pay was a % of blue book value & bond was good for only a set period of time but covered his loss up to a set amount if title could not be cleared. Lots of stuff notarized, pretty inexpensive but there was a hard asset (vehicle) tied to the bond as collateral. You need to see what the gap is from what you put in initially minus full bond amount & if collateralized.
Your situation is not as simple as bonded title. It sounds like you had a fiduciary bond when originally named guardian. And was carried over into probate as asset of Aunts estate. The paperwork on your bond has details as to what happens if bond is forfeitured (negative) for claims they hold responsible for & IF in turn you are responsible to pay the bonding company for forfeiture as per initial contract you signed.
the problem, I’m guessing, isn’t about what judge does in court next week which, again I’m guessing, is to close out probate. It’s - I bet - a distribution determination hearing that PC next week is about. That atty guardian/ executor has already filed claims against estate. Realize anyone else who had claims against estate also could have filed as well. They are in the docket, attached to her PC #. Your not - imh not an atty opinion - in a position now to say 12k is high or disprove the amount; that should have happened by your monitoring her docket filings, which you can do as an interested party & then file for a review of by PC or you ask for an in-chambers meeting to discuss claims to get standing for her estate. If you did nothing, like you never filed anything into Auties probate # ever, & don’t do one before the hearing, then you probably do not have ”standing” as far as the court if concerned. You need “Standing” to contest a sign off of items in docket before a final distribution hearing is my experience.
The problem Imo is what contract reads for the Surety bond you did & what you pledged as collateral and if it’s secured collateral or unsecured. You have to read that bonding contract to see just how worried you need to be. Say it’s 12k bond & you paid 2k. If you put your home as collateral, they will try to place a 10k lien on your house. If pledged personally, they can maybe do wage garnishment or turn it over for collections. I bet there's a existing network of bondsmen in your state that do this for out of state guys. Unless your judgement proof, or have a really pittbullie type of personality, you’re going to have to settle & pay. Its all about agreement you signed so it’s between you & the bonding co. Not really a probate issue.
It sounds like bonding has already told you they are going to seek you out to pay the difference aka the “forfeiture”? If they can put fees & interest on, it could be crazy costs added atop forfeit. You might be able to negotiate terms. I’d try to work something out. I’d be concerned that forfeiture of a bond could have criminal charges but that might be just for criminal bonds that skip, like from Uncle Ginos Bail Bonds LLC that’s across from jail. I’ve never tankfully had to ever know about these.
abt going to hearing, I’d suggest you try to go online to see the docket for Auntie, you can probably for a small fee download filings & orders done so you know what’s what to date; then call PC Mon AM and speak with staff to see if it’s a distribution hearing that happening. If you don’t have standing already, forget going imo. Good luck.
what I bet has happened is that the atty has filed claims against the estate for $X thousands of dollars. In each claim, there’s fees and expenses. It’s claims to be paid eventually. He’s maybe fronted the costs. He’s seeking payment of his claims against the estate or His costs for administration of the Estate (if he’s executor too). The estate is negative but has that bond as an asset he’s going after.
My experience is If he’s also the executor of the estate,& if he’s filing for only expenses with receipt or cancelled checks in the claim, it gets filed & goes off for orders to be signed off on. If it’s fees, & it’s the same atty that’s the executor as well, it will get likely be reviewed by judge or have an in-chambers meeting of claimants. So it’s equitable cause your kinda paying yourself.
But if it’s fees for a different atty, the executor atty can let it go to get orders signed off on (like for expenses) so no review.
I’ll bet a case of Prosecco that that’s why a 2nd atty involved. I missed the 2nd atty part till I reread the OP.
These guys are the Pros from Dover & gonna get paid. Their going to get bond $. If someone didn’t understand how bonds go awry, & that their now responsible for, not their problema.