What do personal representatives do?
A personal representative usually arranges for the management and security of estate property, handles payments of all debts and expenses owed by both the deceased and the estate, and assesses income-tax and estate-tax liabilities.
What is personal representative in a trust?
If you create a trust, you name a person to be the “trustee” of the trust. The trustee is duty bound to follow the instructions in the trust instrument and the law governing trusts. The person whom you nominate to settle you estate is your “personal representative,” sometimes called your “executor”.
What can a personal representative do for an estate?
A personal representative uses the letters to confirm their authorization to act on behalf of the estate to accomplish fiduciary duties, such as marshalling the decedent’s assets, paying the estate’s debts, and distributing the estate to beneficiaries (those named in a will) or heirs (an intestate decedent’s next of kin).
What happens if a personal representative fails to sell an estate?
If the estate includes personal property that is required to be sold, and the personal representative fails to do so, there may be a steep financial penalty. If the personal representative keeps, consumes, or disposes of the asset, he or she may be held liable for double the appraised value of that personal property.
What makes a personal representative a fiduciary or trust?
A personal representative is a fiduciary: they stand in a position of trust, ethically and legally, to the estate and its heirs.
When does a court order a personal representative?
When the court orders that a personal representative’s appointment is supervised this means the personal representative must petition the court for approval to take most actions. For example, the personal representative would need to seek the court’s approval before liquidating property, distributing property/cash, or closing the estate.
When is a personal representative required to sell an estate?
Sometimes, a personal representative may be required to sell estate property pursuant to the terms of a will, to pay the estate’s debts, or to consolidate an estate that will be split among multiple beneficiaries or heirs.
Can a personal representative file a list of heirs?
The personal representative shall not receive any compensation for his services until the list of heirs is filed unless he files an affidavit before the commissioner of accounts that the heirs are unknown to him and that after diligent inquiry he has been unable to ascertain their names, ages, or addresses, as the case may be. E.
Who are the personal representatives in probate court?
The umbrella term “personal representative” includes both executors and administrators. Executors are those designated by a decedent’s will to administer the estate, and administrators are those appointed by the probate court when there is no will or there is not designation made in the will.
What makes a personal representative a fiduciary of the estate?
A personal representative is a fiduciary: they stand in a position of trust, ethically and legally, to the estate and its heirs. This fiduciary duty means that the personal representative is bound to act in the best interests of the estate, even if those run counter to the personal representative’s own interests.