If you’ve been asked to serve as an executor or personal representative of an estate, it will be important for you to understand your responsibilities. It is both an honor to be asked to carry out your family member or friend’s final wishes, but it is also a lot of work.
A useful article appearing on WMUR, “Settling an estate,” explains that an executor is the person designated in an individuals’ last will and testament (the “Will”), and is responsible for distributing the deceased’s property, pay any debts or expenses, and make sure that the estate’s tax returns are filed. In Arizona, the executor is referred to as the personal representative. Though a person is named in one’s Will, that person only becomes the personal representative and has authority to act on behalf of the deceased estate when appointed as the personal representative by the probate court.
When a personal representative isn’t willing or able to perform his or her duties, the next alternate personal representative named in the deceased’s Will would serve in their place. If no alternate personal representative has been named in the Will, an interested party can petition the probate court to appoint that person as the personal representative of the probate estate.
Being the personal representative of an estate can be a difficult and time-consuming task. The personal representative must file the original Will with the probate court in order start the probate process. Once appointed by the probate court, the duty of the personal representative is to follow the deceased’s instructions for the disposition of their property set forth in the Will. In some instances, the deceased may have also left additional instructions that make the probate process easier, such as a list of documents and their locations, contact information for attorneys, accountants, financial planners, a list of creditors, login information for important web sites, and final burial wishes.
The personal representative is responsible for the management and distribution of assets (known as the “fiduciary duty”), while dealing with the emotions of a grieving family. To ensure that the personal representative’s tasks are completed properly, it may be helpful to enlisting the advice and guidance of an experienced estate planning attorney.
A review of the Will with an estate planning attorney is done in order advise the personal representative of the proper procedures for fulling their fiduciary duty and to help them comply with the probate court’s strict requirements.
An inventory and appraisal of assets owned by the deceased should be taken by the personal representative to determine whether federal estate taxes must be paid. Once the personal representative has (i) determined the value of the probate assets, (ii) given the proper notice to all current and potential creditors, and (iii) allowed time for those creditors to make a claim against the probate estate, then the assets may be sold or distributed, according to the deceased’s wishes set forth in the Will.
One important aspect of your fiduciary responsibility following the passing of the deceased is to protect the assets of the estate. This includes duties such as changing locks on a residence and securing the deceased’s personal property. The personal representative will likely need to pay mortgages, utility bills, and maintenance costs on property. He or she will need to change the name on the home and auto insurance policies, and brokerage accounts will need to be retitled or transferred into the name of the probate estate.
Final expenses also need to be paid. The funeral home or coroner will provide death certificates that will be needed for various tasks in the future, such as filing life insurance claims. If the deceased was collecting Social Security for example, the agency will need to be informed of your loved one’s death. Checks from Social Security received after the date of death will need to be returned. A final federal and state tax return for the deceased may also need to be filed, along with an estate and gift tax return.
If you would like to sit down with an experienced estate planning attorney to help you understand your duties as the personal representative of a probate estate, call the Soto Law Firm today for a free consultation.
Reference: WMUR (May 24, 2018) “Settling an estate”
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