Administrator: A personal representative appointed by the court to administer the estate of a person who died without a will. The person named in the will as a personal representative would not be legally entitled to serve if he or she did not meet all the criteria of a personal executor under the law of that state. They may have been convicted of a crime or have suffered a mental decline that would prevent them from performing their duties. Maybe they are not yet of legal age. All these circumstances would prohibit them from serving. Usually, the order of preference is similar to the order in which an estate passes to the family of a person who dies without a will. In other words, the spouse or adult children are usually called administrators. However, it is possible that a more distant family member may be appointed, or even creditors or other strangers on the estate and the deceased. If the deceased has not exercised his or her right to appoint a personal representative and no person with close relations is available, the court may, at its discretion, appoint a person unknown to the deceased and unfamiliar with his or her affairs. This is often the case when the court is concerned about possible conflicts of interest or the rights of creditors or other beneficiaries. In most cases, when a person who owns property of more than one de minimis value dies, it is necessary to appoint someone to administer the estate. This person (this may be one or more persons, a bank or trust, or both) acting for the deceased or “in the place of the deceased” is usually called a personal representative. If the deceased dies “testate” – that is, with a will – an executor is appointed as his personal representative.
If the deceased dies without a will, an administrator is appointed as a personal representative. The duties and responsibilities of the personal representative and even the title of the personal representative may change depending on the applicable laws and circumstances of the State, but the need for such a person (or persons) is shared by all. After the letters of appointment of the personal representative have been issued, the court continues to have the power to revoke them if they should not have been issued in the first place. Common grounds include: Executor: A person appointed as a personal representative in the will. Can I be sued or held personally liable? Your mistakes or mismanagement of a trust or estate can hold you personally liable. The most common pitfalls include non-payment of taxes or timely filing of returns, inappropriate investment decisions (whether overly conservative, too speculative or favouring one beneficiary over another), self-trading (buying assets for yourself or your family from the estate or trust, whether at market price or not), or the expiration of damage insurance, resulting in a loss of the account. Your best protection is to get good professional advice and fully document your actions and decisions. If the personal representative is an immediate family member, fee problems are less likely. For example, if the widow is the executor and the sole beneficiary, it could be much more advantageous for her to receive the net proceeds of the estate as heiress rather than charging an executor`s fee, which eventually comes out of her own pocket.
The executor`s commissions or fees are taxable for income tax purposes and often at a higher rate than if the only tax was the state`s inheritance tax – or in some cases, even the federal inheritance tax. A personal representative, when appointed in a will, is sometimes called an executor or executor. The term “executor” can refer to a person of any sex, while the term “executor” refers specifically to a female personal representative. A personal representative who is not appointed in a will or who is appointed in intestate proceedings is also called an administrator. “Trustee” – A person or trust that acts for the benefit of another person. Trustees, executors, administrators and other types of personal representatives are all trustees. Professional executors such as banks and fiduciary institutions advertise with fixed fee schedules. However, for discounts over $1 million, it may be possible to negotiate lower fees.
These negotiations take place between the potential executor and the person making the original designation (the person the institution wishes to appoint as a personal representative in its will). A lawyer who specializes in estate administration can be helpful in negotiating lower fees for a large estate. If the deceased has not left a valid will and therefore has not appointed his or her personal representative, a personal representative (called an administrator) is appointed by the estate authority or register of wills responsible for the deceased`s estate. This usually occurs in the state and county of residence of the deceased. In most cases, state laws determine who has the right to be the administrator. If you have been appointed as the personal representative of a person`s estate, we can help. Contact Miller and Steiert, P.C. with questions about estate planning and your role as a personal representative. Psychologically, many beneficiaries have “spent” their shares before receiving them. The subsequent announcement that the personal representative expects to receive a significant portion of this amount for services undoubtedly provided will meet with serious resistance. This applies in particular if the beneficiaries have not been regularly informed of the work carried out and have no prior knowledge of the expected amount of the personal representative`s fees. It is much easier to have an open discussion about fees at an early stage if beneficiaries are aware of the complexity of the personal representative`s duties and are eager for someone else to take on this responsibility.
In both cases of a deceased estate, a probate court of the competent court issues a statement of the facts, including the fact that a will has been filed or has not been filed and that an executor or administrator has been appointed. These are often referred to as “letters of will,” “comfort letters,” or “letters of representation.” These documents, along with the corresponding death certificate, are often the only license a person needs to carry out the banking, stock exchange, real estate and other measures necessary to organize and dispose of the estate of the deceased on behalf of the estate itself. Most people know that a personal representative of an estate has certain duties and responsibilities, but until he is appointed as a personal representative, he may not understand his exact role. What are the important things you should know about your role as a personal representative? The scope of the activity of a personal representative varies considerably depending on the complexity of the succession. However, the duties of a personal representative include in all estates: As with any trustee, a personal representative is liable for all losses arising from acts of bad faith, mismanagement or breach of the obligation of allegiance (including the duty not to act on oneself). The death of a loved one or close friend is a traumatic experience. In addition to emotional anguish, those responsible for caring for the personal and financial affairs of the deceased after his or her death often find themselves with many more questions than answers about their duties and responsibilities. This article examines some of the fundamental aspects of estate administration and describes the general duties of a personal representative, whether an executor, administrator or trustee, after his or her death. Being a personal representative requires a stream of work in a short period of time. Sometimes it`s frustrating, especially when beneficiaries argue about the estate or challenge the will. In addition, a personal representative is usually personally responsible for all claims of beneficiaries for fraud or mismanagement.
Generally, the administration of an estate or trust after the death of a person requires the personal representative to address some common issues and follow several standard steps to allocate the deceased`s assets according to their wishes. These policies focus on activities that occur immediately after the person`s death in an estate or trust. A personal representative is usually appointed in a will. However, the courts sometimes appoint a personal representative. Whether the deceased left a will or not, the probate court usually determines whether or not a will has been filed and a personal representative or administrator has been appointed. The personal representative uses this document with the death certificate to settle the affairs of the deceased and dispose of his estate. If a trustee has no experience in this area, it is recommended to seek professional advice when investing trust assets. In addition to good investment results, the trustee must invest in accordance with the prudent investor rule that governs the trust or assets. An experienced investment advisor can help the trustee decide how to invest, which assets to sell to provide money for expenses, taxes or direct distributions, and how to minimize income taxes and capital gains. Remuneration for services should be commensurate with the time spent and the quality of work and the results obtained. The personal representative must keep a detailed record of the time spent on behalf of the estate, the services provided and the expenses paid on behalf of the estate […].