Thank you; the question came through as Mississippi so thank you for that clarification.
An executor has a fiduciary duty to the estate. A fiduciary duty means that the person in the fiduciary capacity owes a duty to the other person- and that the fiduciary must act in good faith, with the best intentions, to preserve any property that is at issue. Failure to act in this manner (essentially, a trust/guardian) is considered a "breach" and can result in:
1. removal of the fiduciary
2. sanctions (ie fines, award of attorney fees, etc)
3. damages (economic liability for the damages suffered by the party to whom the duty was owed)
So failing to list all of the estate assets would be considered a fiduciary breach.
As for the acccount:
A usufruct is "a real right of limited duration on the property of another. The features of the right vary with the nature of the things subject to it as consumables or nonconsumables." La. Civ. Code art. 535. The usufructuary has the right of use and enjoyment of the property for a limited time, usually for life. The naked owner enjoys title to the property and may alienate or encumber the property subject to the usufruct, but in doing so cannot interfere with the right of the usufructuary. La. Civ. Code art. 603, 605.
Since money is a thing which cannot be used without being expended, a deposit account would be the subject of a consumable usufruct. See La. Civ. Code art. 536. The usufructuary becomes the owner of the consumables and may consume, alienate, or encumber them. "At the termination of the usufruct he is bound to pay to the naked owner either the value that the things had at the commencement of the usufruct or deliver to him things of the same quantity and quality." La. Civ. Code art. 538. Comment (c) to Article 538 indicates that Louisiana courts have consistently required the usufructuary to restore the value that the things had at the commencement of the usufruct. In essence, the usufructuary of a consumable usufruct possesses a qualified ownership which does not exclude the rights others may possess or enjoy upon termination of the usufruct. See Stewart v. Usry, 399 F.2d 50, 55 & n.11, 56 (5th Cir. 1968). The usufruct in favor of a surviving spouse creates "dual but separate interests in property. . .which taken together comprise all the attributes of ownership, but this ownership, does not by virtue of the interests passing from the decedent to the surviving spouse, vest in the spouse." Id. at 57, 58 (emphasis added).
So if the children are the "naked owners" of the account any money withdrawn must be replenished so the children have full access to such funds.
Further questions? Please post here to continue the chat.
Satisfied? Kindly rate positively so I receive credit for assisting you. I hope that you feel I have earned 5 stars as I strive to provide my customers with great service.
(no additional charges are incurred).
Information provided is for educational purposes only. Consultation with a personal attorney is always recommended so your particular facts may be considered. Thank you and take care.