A District of Columbia appeals court holds that an attorney does not need to seek prior court approval before accepting payment from a personal representative if the personal representative paid the attorney from her personal funds instead from estate funds. In Re Estate of Lizzie Wilson (D.C. Ct. App., No. 05-PR-428, Nov. 1, 2007).
Lizzie Wilson died and the primary asset in her estate was a house. Her personal representative hired an attorney, Paul Pearlstein, to assist the personal representative in acquiring possession of the property. After Mr. Pearlstein successfully completed the task, the personal representative paid him in full from her own funds.
The personal representative filed a final account, which included a request for reimbursement for the attorney's fees. The trial court approved the request, but determined Mr. Pearlstein's actions violated the probate code because he did not seek approval from the court before accepting compensation. The court sanctioned Mr. Pearlstein, and he appealed.
The District of Columbia Court of Appeals reverses, holding that the probate code does not require an attorney who does work for an estate to seek court approval before accepting funds from the personal representative's personal funds.