What is and what does a Personal Representative do?

A Personal Representative, also known as an Executor or Administrator, plays a crucial role in the estate administration process after someone passes away. Their primary responsibility is to manage and settle the affairs of the deceased individual according to the instructions outlined in their will or as per the laws of intestate succession (when there is no valid will).

Here are the key duties and responsibilities of a Personal Representative:

1. Initiating the Probate Process: The Personal Representative begins by filing the necessary paperwork with the probate court to open the estate. This typically involves submitting the original will, if available, and a petition to be appointed as the Personal Representative. If there is no will, the court will appoint an Administrator to handle the estate.

2. Identifying and Collecting Assets: The Personal Representative must locate and identify all assets owned by the deceased individual. This includes bank accounts, investments, real estate, personal property, and any other assets of value. They may need to communicate with financial institutions, government agencies, and other parties to gather the necessary information and documentation.

3. Inventory and Appraisal: The Personal Representative is responsible for preparing a comprehensive inventory of the deceased person’s assets. This involves listing and appraising the value of each asset as of the date of death. The inventory may need to be submitted to the court for review and approval.

4. Notifying Creditors and Settling Debts: It is the Personal Representative’s duty to notify known creditors of the deceased individual’s passing and provide them with an opportunity to file claims against the estate. The Personal Representative reviews these claims, determines their validity, and settles outstanding debts using the available estate assets.

5. Distribution of Assets: Once all debts, taxes, and expenses have been paid, the Personal Representative is responsible for distributing the remaining assets to the beneficiaries according to the terms of the will or intestate succession laws. This involves preparing the necessary documentation, such as deeds, stock transfers, or other legal instruments, to effectuate the transfer of assets.

6. Record Keeping and Accounting: Throughout the entire estate administration process, the Personal Representative must maintain accurate records of all financial transactions, correspondence, and communications related to the estate. They may be required to provide an accounting of the estate’s assets, income, expenses, and distributions to the beneficiaries or the court.

7. Filing Tax Returns: The Personal Representative may need to file the deceased individual’s final income tax return and, if applicable, estate tax returns. They should work closely with a tax professional to ensure compliance with tax laws and to maximize tax-saving opportunities for the estate.

It’s important to note that the specific duties and responsibilities of a Personal Representative can vary depending on the jurisdiction and the complexity of the estate. It’s advisable for the Personal Representative to consult with an attorney experienced in estate administration to ensure they fulfill their obligations properly and in accordance with the applicable laws and regulations.