If you have ever been appointed the Personal Representative of an estate, you may have thought “Okay, no big deal, I just follow directions, and everything will be fine.” You need to take caution because it is easy for a Personal Representative to make mistakes. Most importantly, as a Personal Representative you can be held personally liable if something happens with the estate due to your actions or lack of action.
As a Personal Representative, there is a substantial list of items that you will need to take care of. Securing the residence, physical assets, notifying beneficiaries, probate of the will, filing tax returns, and settling debts are among the most obvious items on the list. The most important item to note is that you do not have to navigate this journey alone. Seeking the assistance of a probate attorney can protect and help you determine what needs to be done. Probate attorneys and financial advisors can tell you exactly what you need to do.
Mistakes to Avoid
Many people who have been appointed as Personal Representative have made some mistakes. Let’s talk about what not to do:
- You may have a friend that practices law, and they may be very smart. However, you need a professional that is well-versed in probate law. Having a probate expert guide you in the probate process can ensure that you do not make mistakes.
- Never ignore the beneficiaries. As the Personal Representative of an estate, you have a financial responsibility to keep the beneficiaries informed. Transparency of information will protect you, and keep the beneficiaries informed. You want to keep them updated, and if they ever feel that you are not doing your job, they can have you removed.
- Serving as Personal Representative is not the time for a power trip. Keep a level head, and always do what is right. This will keep family drama at bay and will protect you in the long run.
- Do not procrastinate. Failing to act is one of the biggest mistakes that a Personal Representative can make. If you feel that you cannot make progress to close the estate, do not agree to assume the role. The Personal Representative of an estate must make progress to close the estate. There is no benefit to inaction and delaying the process.
- Do not be afraid to speak with an attorney. If you are concerned about legal fees, then follow the attorney’s advice to do what you can on your own.
- Do not show favoritism. You may have a stronger personal relationship with one of the beneficiaries over another. Serving as a Personal Representative over an estate is a business function. You must treat all parties equal in the business functions of the estate.
- Do not perform in the best interest of you. As Personal Representative, you have been appointed, in trust, to serve the estate with integrity. Selling property for your own financial gain is a huge mistake and is a breach of your obligation.
- Always remember that you have a personal liability. As Personal Representative, your own money and assets could be at risk if you do not perform with integrity in your role.
Serving as a Personal Representative can require a substantial amount of work. However, by serving with integrity and utilizing the assistance of legal professionals you will be prepared for the task ahead.
