Some people agree to serve as the personal representative of an estate after a request from a loved one. Other times, people accept the role of personal representative when a loved one dies without an estate plan or their chosen personal representative cannot take on the responsibility of estate administration.
Regardless of how someone comes into the position, they have a duty to the beneficiaries of the estate to fulfill their role to the best of their capabilities. They may also be at risk of legal and financial liability if they don’t fulfill their responsibilities. The following are the main obligations a personal representative must fulfill.
Initiating and overseeing probate proceedings
A personal representative who knows they must take on that role often initiates the probate process in court. They may present estate planning documents to the courts or may file the necessary paperwork when there does not seem to be a valid will available. They then have a responsibility to attend probate hearings and follow all standard procedures during the estate administration process.
Communicating with interested parties
Personal representatives typically need to communicate with presumptive heirs and named beneficiaries included in estate planning documents. They typically also have to communicate with certain government authorities and known creditors. The personal representative typically files a final tax return on behalf of the decedent. They also need to notify creditors. This gives interested parties an opportunity to speak up about concerns or submit claims for repayment to the probate court.
Fulfill legal obligations and follow estate plan instructions
Perhaps the most enjoyable part of estate administration is the distribution of assets to beneficiaries and heirs. The inheritance that people receive can help assuage their grief after losing a loved one. Before the personal representative can distribute estate assets to beneficiaries, they typically need to make a point of fulfilling financial obligations. Paying taxes and valid debts takes precedence over the distribution of assets to beneficiaries. Personal representatives need to be cautious to ensure they don’t end up personally liable for failing to properly distribute resources in accordance with the law.
The right guidance throughout the process decreases the likelihood of mistakes that could result in financial consequences. Knowing what to expect during probate administration can help personal representatives fulfill their responsibilities. Those with proper support and knowledge can carry out the decedent’s wishes and remain compliant with all applicable laws simultaneously.
