The Executor or Executrix of an estate often finds themselves faced with the
duty of being the Personal Representative of the Probate of the
estate, a legal
process that involves the accounting of the assets, liabilities and taxes. Below
you will find a general list of the duties and liabilities of the Personal
Representative. These duties and liabilities may vary depending on your state
and county. This site does not provide legal advice.
Duties
and
Liabilities of Personal Representative
When the court appoints you as personal representative of an estate,
you become an officer of the court and assume certain duties and obligations. An
attorney is often sought for advise on these matters but is not
required. You should however understand the following:
1.
Managing the Estate's Assets
a. Prudent investments You
must manage the estate assets with the care of a prudent person dealing with
someone else's property. This means that you much be cautious and may not make
any speculative investments.
b. Keep estate assets separate
You must keep the money and property in this estate separate from
anyone else's, including your own. When you open a bank account for the estate,
the account name must indicate that it is an estate account and not your
personal account. Never deposit estate funds in your personal account or
otherwise mix them with your or anyone else's property. Securities in the estate
must also be held in a name that shows they are estate property and not your
personal property.
c. Interest-bearing accounts and other investments Except for
checking accounts intended for ordinary administration expenses, estate accounts
mush earn interest. You may deposit estate funds in insured accounts in
financial institutions, but you should consult with an attorney before making
other kinds of investments.
d. Other restrictions There are many other restrictions on your
authority to deal with estate property. You should not spend any of the estate's
money unless you have received permission from the court or have been advised to
do so by an attorney. You may reimburse yourself for official court costs paid
by you to the county clerk and for the premium on your bond. Without prior order
of the court, you may not pay fees to yourself or to your attorney, if you have
one. If you do not obtain the court's permission when it is required, you may be
removed as personal representative or you may be required to reimburse the
estate from you own personal funds, or both. You should consult with an attorney
concerning the legal requirements effecting sales, leases, mortgages, and
investments of estate property.
2.
Inventory of Estate Property
a. Locate the estate's property
You must attempt to locate and take possession of all the decedent's
property to be administered in the estate.
b. Determine the value of the
property This can be done yourself or you can consult a
professional to assist you.
c. Final an inventory and appraisal
You must file with the court an inventory and appraisal of all the
assets in the estate.
d. File a change of ownership
At the time you file the inventory and appraisal, you must also file
a change of ownership statement with the county recorded or assessor in each
county where the decedent owned real property at the time of death.
3. Notice
to Creditors
You must mail a notice of administration to each known creditor of the
decedent within two to four months after your appointment as personal
representative.
4.
Insurance
You must mail a notice of administration to each known creditor of the
decedent within four months after your appointments as personal representative.
5. Record
Keeping
a. Keep accounts You must keep complete
and accurate records of each financial transaction affecting the estate.
You will have to prepare an account of all money and property you have received,
what you have spent, and the date of each transaction. You must describe in
detail what you have left after the payment of expenses.
b. Court review
? your account will be reviewed by the court. Save your receipts because the
court may ask to review them. If you do not file your accounts as required, the
court will order you to do so. Your may be removed as personal representative if
you fail to comply.
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