What Is a Personal Representative?

A personal representative (or legal personal representative), also known as the executor, is 💟the individual chosen to administer the estate of a deceased person. They are designated as such by the decedent or by⛄ a court.

Personal representatives are 澳洲幸运5官方开奖结果体彩网:fiduciaries and have the duty to act in good faith, with honesty, loyalty, and candor, and in the best interests of the estate’s 澳洲幸运5官方开奖结果体彩网:beneficiaries. It is legal and often common for a personal representative to be a beneficiary of the estate for which they are the executor.

A personal representative is also an individual with the authority to make certain decisions for others. For example, a personal representative may make health-care-related decisions for another person. In this case, a personal representative has 澳洲幸运5官方开奖结果体彩网:power of attorney, a legal authority that allows the representative to act for the other person 澳洲幸运5官方开奖结果体彩网:when making legal or finan𒁏cial decisions.

Role and Responsibilities of a 💃Personal Representative Works

A personal representative typically performs a number of tasks when acting as the executor of a deceased person's estate, including arranging funeral services, notifying those who are entitled to part of the estate’s property, and determining the value of the estate, minus any debts. 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 澳洲幸运5官方开奖结果体彩网:estate-tax liabilities. Lastly, a pe💦rsonal representative files all needed tax returns on time and distributes estate propertyꩲ according to the will.

Not all work must be performed by the personal representative, t👍hough. For example, the personal representative usually works closely with lawyไers and tax professionals. The personal representative merely ensures that all the tasks related to the estate are handled properly and in a timely manner.

Requirements of a Personal Representative

A personal representative is usually named in a will. However, courts sometimes appoint a personal representativ﷽e. Usually, whether or not the deceased left a will, the probate court will issue a finding of fact that a will has or has not been filed and a personal representative or administrator has been appointed. The personal representative will use this document, along with the death certificate, to settle the deceased’s affairs and dispose of their estate.

Being a personal representative requires a flurry of work in a short amount of time. Sometimes, it’s frustrating, especially if beneficiaries squabble about the estate or contest the will. Also, a personal representative typically is 澳洲幸运5官方开奖结果体彩网:personally li💝able for♏ any claims of fraud or mismanagement by the beneficiaries.

Hiring professionals such as estate lawyers can make the joജb easier. In addition, online tools offer guidance abou🙈t what to do next. They also allow documents to be shared with beneficiaries electronically, and set a timeline for all the steps throughout the entire process.

Personal Representative vs. Trustee

A trustee is a legal title that is granted through a trust. Both personal representatives and trustees are types of fiduc✨iaries, with a responsibility to act in the best interests of an estate and its beneficiaries. Ho🍎wever, each of these designations plays a very different role in an estate plan. The primary difference between a personal representative and a trustee is that one handles your probate estate while the other deals with living trusts.

Any individual who creates a living trust must name a trustee. The trustee is tasked with the day-to-day management of property owned by the trust for the benefit of its beneficiaries. Trustees are trusted to make decisions in the beneficiary's best interests. They have a fiduciary responsibility to act in the best interests of the trust beneficiaries when managing their assets.

Both personal represent♕atives and trustees can be a person or an institution. Both may serve as co-trustees. 

Advantages and D🦩isadvantage✅s of a Personal Representative

There are many responsibilities allocated to a personal representative. For this reason, there are both advantages and disadvantages to accepting this role. While many people feel honored to be asked to accept the role of a personal representative, executing a will takes a lot of time and work. One of the biggest 澳洲幸运5官方开奖结果体彩网:drawbacks to being an executor is the great amount of💎 time it takes to properly handle the responsibilities. 

An executor is tasked with dispersing all parts of an estate. This can include property, possessions, and assets. If an estate is very large, or if there are unequal distributions to children, trusts, or 澳洲幸运5官方开奖结果体彩网:annuities to untangle, the task can be very fraught and time-consuming. There can be disputes with co-executors and disputes among heirs.

Executors must be organized and detail-oriented, and they must be willing to dedicate a significant amount of time to this role. It may be better to🅠 decline the role of a personal representative, even if you feel honored to be selected as an executor, if you feel like you are unable to do the job properly. A sense of obligation forces many people to accept the role of executor, although it is a bigger decision than most people realize. 

Of course, a personal representative is allowed to receive a commission for carrying out their duties. Different states have different laws about how executors are compensated: It can be by the hour, as a flat fee, or as a percentage of the estate. Executors are also entitled to compensation for expenses incurred as they c💯arry out their responsibilities. However, if the estate is very small, the executor may be asked to waive any c𝐆ommission.

The Bottom Line

The law requires personal representatives to follow the terms of the deceased person’s will (assuming that the individual who died had a will). If the deceased person died 澳洲幸运5官方开奖结果体彩网:intestate (without a will), the personal representative will serve as the executor of the intestate ✃estate.