There are a variety of executors and personal representatives available to handle estate planning for individuals. Some choices may be more important than others, but both options have their own pros and cons. Many factors, such as the size and assets of the estate, will play into the decision.
Some people advocate for someone close to the person who died to take on this role, while others say it’s best left to a professional executor. Ultimately, the decision comes down to what feels right to the individual.
Who is an Executor?
An executor is someone who is appointed to manage the financial affairs of a deceased person’s estate. They may also be called an administrator. There are many different types of executors, including independent, family, and corporate executors.
Who Qualifies as an Executor?
The qualified person to act as an executor typically meets several qualifications, including being at least 18 years old and a U.S. citizen or permanent resident.
They must have been admitted to practice law in the state in which the estate will be located; possessing a current license to practice law in the state in which the estate will be located; and having experience managing estates.
As with any other legal appointment, an executor’s duties are subject to direction from court order or judicial approval. The duties of an executor vary with the type of estate and the special circumstances involved. For example, an individual may be a family member who is replacing a deceased parent in a will or trust.
Duties of an Executor
- An executor is a person who assumes the duties of an executor in a death case.
- An executor is responsible for the care and management of the estate after the death of someone who has died.
- The executor must maintain records of all proceedings in the estate, and keep track of all money, assets, and liabilities in the estate.
- The executor also must provide financial support to loved ones when necessary.
- An executor should be able to read and write English, and have a high school diploma or equivalent.
- An executor should be available to answer questions or help with the process of preparing an estate.
- An executor should take reasonable steps to protect the privacy of a person’s personal information.
- An executor must not be involved in any way with the will of the decedent.
- An executor should keep copies of all documents related to a will and is required to preserve them for at least ten years.
Who is a Personal Representative?
Personal Representatives (PRs) are individuals who are appointed by a court to handle property, estate, and financial matters on behalf of their clients. Often, PRs have more experience in the legal field than executors.
When it comes to handling personal finances, executors often come across as more experienced and qualified. However, personal representatives have the ability to handle more complex estates with greater expertise.
Personal Representatives are the most common type of executor, and they’re responsible for managing and distributing the estate’s assets according to the will or trust instructions. Trustees, on the other hand, are not as common but can be an option if you don’t have a personal representative.
Here’s what you need to know about them before choosing one. The main difference between personal representatives and trustees is who is in charge of decisions regarding the estate’s disposition.
Personal Representatives have more control over how their decisions are implemented; however, trustees have more power to direct distributions to beneficiaries.
This means that trustees can make better decisions about what to do with money that isn’t automatically distributed to beneficiaries under a will or trust instructions.
Who Qualifies as a Personal Representative?
There are many factors to consider when determining whether someone qualifies as a personal representative.
For example, if the person has direct legal control over the person’s assets and can take steps to protect those assets from being seized or shared with others, they may be considered a personal representative.
Additionally, if the person is acting in loco parentis (on behalf of the person’s parent), they may be considered a personal representative.
Duties of a Personal Representative
There are many duties that a personal representative must fulfill if they are to serve in this capacity, including:
- Obtaining legal advice.
- Determining the assets of the estate.
- Keep track of funeral expenses.
- Administering the estate if there is a death in the family.
- Maintaining communication with beneficiaries and heirs.
- Completing government paperwork, such as a death certificate, if the person is not already deceased.
- Divorce decrees or other court orders are also considered to be part of the case and may be handled by a personal representative.
- If a person dies without an estate, the court may order a personal representative to handle the estate.
- If the death resulted from natural causes, such as cancer or an accident, the personal representative must search for other beneficiaries and heirs who can inherit.
- If there is no other heir, the personal representative will have to create one through an affidavit or testimony in court.
Differences Between a Personal Representative and an Executor
There is a big difference between personal representatives and executors in terms of their responsibilities. Personal representatives are responsible for the care and well-being of the person they represent, while executors are charged with carrying out the will of the person’s estate.
Here is key difference between personal Representatives and Executors:
Personal representatives are responsible for the care and well-being of the person represented. Executors are typically charged with carrying out the will of an estate, which may include tasks such as sorting and distributing assets, paying debts, and disposing of property.
This means that personal representatives have a greater responsibility for taking care of the person they represent – often more so than executors.
Conclusion
It can be difficult to decide who should be named personal representative of an estate in a situation where there are multiple heirs. A majority of states have laws that allow for executors to be named as personal representatives, but it is always best to consult with an attorney beforehand to make sure the process is proper and safe.