Opinion ID: 1237726
Heading Depth: 1
Heading Rank: 5

Heading: Interest on the claim erroneously paid Goetz.

Text: Executor paid Goetz' claim of $22,354.50 on November 27, 1984. Due to Larsen's objection, Goetz placed the payment into a non-interest bearing escrow account, subject to the court's decision. The payment to Goetz was not returned to the estate until after the court's order of June 1, 1987, which order required Executor to recover the payment, plus fifteen percent interest from the time of payment. The court amended its order and held that the Executor was not legally bound to collect interest on the payment made to Goetz. Larsen claims that the court erred by not requiring Executor to pay interest to the estate. Larsen cites no authority to support his claim, other than the general fiduciary obligation of an executor to manage an estate in the same manner as his own affairs. An executor satisfies this obligation if he acts in good faith and with reasonable care. 31 Am.Jur.2d Executors and Administrators § 217 (1967). The court found that Executor made the payment in good faith and without negligence. These findings are supported by the evidence. By making the payment, Executor put the funds out of his own hands and control. Under these circumstances, Executor did not breach his fiduciary obligation to the estate and the court did not err in ruling that Executor was not required to account for interest on the payment. Affirmed and remanded in part.