Personal Representative

A Personal Representative refers to an individual appointed to manage a decedent’s estate. This person is often the surviving spouse or family member, but could also be a probate or estate attorney, or professional estate planner.

The Personal Representative can be appointed within a decedent’s Last Will and Testament or through the probate court. Probate is required within the United States to settle estates not protected by a trust. The Will is used to provide directives for estate settlement and distribution of inheritance. If there is no Will at the time of death, estates are settled pursuant to state probate laws.

The duties of a Personal Representative will vary depending on the value of the estate, the execution of a legal will, and how well the heirs of the estate get along. If the estate is small and the decedent executed a will, estate settlement usually occurs within a few months. When estates consist of titled property, business assets, and valuable personal belongings or when no Will exists, probate can extend for several years.

The first step of probate estate management is to submit a copy of the Last Will and Testament to the probate Court. If no Will is available, a death certificate is provided, and then a probate case number is assigned.

Some states require Personal Representatives to be confirmed by a probate judge. When an appointed representative resides out of town or if the decedent’s estate is valued over $50,000.00, the Court may require a surety bond. It is best to consult an attorney specializing in probate matters to ensure estate management duties adhere to state law. Otherwise, Personal Representatives could be at risk for legal persecution.

After obtaining the necessary credentials, the Personal Representative must establish a bank account on behalf of the decedent’s estate to record all financial transactions. Probate laws will dictate whether transactions must have Court approval. Some states require a Personal Representative receive approval on every transaction while others allow estate settlement to occur with very little monitoring.

Personal Representatives are responsible for securing all property belonging to the decedent unless property automatically transfers to the surviving spouse. Valuable property like real estate, motor vehicles, artwork and jewelry will have to be appraised to determine their value at the date of the decedent’s death.

Outstanding debts must be satisfied before inheritance property can be distributed. If the estate does not have adequate funds to pay these liabilities, the Personal Representative may be required to liquidate assets. This is common when a decedent held a mortgage note on real estate.

Once all estate management duties are fulfilled, inheritance property is distributed to heirs and beneficiaries. Recipients of these distributions are required to provide a singed and notarized statement acknowledging receipt of the inheritance. After these statements are presented to the Court, the Personal Representative is discharged.

Personal Representatives act as guardians for an estate. When designating a representative within a Will, it is best to discuss this designation with the proposed Personal Representative beforehand. Estate administration duties can be time-consuming and emotionally challenging, especially when grieving the passing of a loved one.

When designating a person to represent an estate, consider how they handle finances and how they make decisions under stress. If there is strife within the family, it may be better to designate a neutral third party as the executor of the estate.