What is required of a Personal Representative?

Being the personal representative, also known in some states as the executor, of an estate is not a task to take lightly. A personal representative is the person responsible for managing the administration of a deceased individual's estate. Although the time and effort involved will vary with the size of the estate, even if you are the personal representative of a small estate you will have important duties that must be performed correctly or you may be liable to the estate or the beneficiaries.

The personal representative is either named in the will or if there is no will, appointed by the court. You do not have to accept the position of personal representative even if you are named in the will.

The average estate administration takes one year, though you won't need to work full time on it. You are not required to hire an attorney for small estates (estates under $75,000.00), but mistakes can cost you money. You may be personally liable if something goes wrong with the estate or the payment of taxes. An attorney can help you make sure all the proper steps are taken and deadlines met. It is important to keep accurate records of everything you do.

Following are some of the duties you should perform as personal representative:

• Locate documents including wills and financial documents.
• Apply for probate.
• Notify interested parties, including beneficiaries, potential heirs (such as children, siblings, or parents who may or may not be named in a will) and known creditors.
• Place an advertisement for potential creditors in a newspaper near where the deceased lived.
• Prepare a list of the deceased's assets and liabilities,
• Manage the deceased's property, collect any property in the hands of other people and protect the property from loss
• Hire an appraiser to find out how much any real property is worth.
• Pay valid claims by creditors.
• If the estate includes a business, make sure the business continues to run.
• File tax returns, including estate taxes and income taxes.
• Distribute the assets to the beneficiaries and set up any trusts required by the will.
• Create and file a final accounting which includes distributions, expenses and income earned by the estate since the deceased died.
• File a final report with the court and close the estate.

All this can be a lot of work, but remember that the personal representative is entitled to compensation, subject to approval by the court.