Duties of Personal Representatives
As a general rule, the personal representative (“PR” or in some states called “executor” or “executrix,” “administrator,” etc.) is responsible for seeing that the deceased person’s (“decedent’s”) estate plan, as expressed in a Will, or as required by the laws of intestacy when there is no Will), is carried out. To perform this role well, you do not need special financial or legal training. Common sense, conscientiousness and honesty are the main requirements. Should you need help, you will be able to hire attorneys, accountants or other experts to assist you, and any fees paid to those professionals, as well as other estate expenses, are payable from the decedent’s estate assets.
As Personal Representative, your duties may include such matters as:
1. Secure estate assets that may be subject to loss or damage (including real property, valuables like jewelry, vehicles, etc., and information related to computer services, like log-in and password information, auto-payments, renewals, etc.).
2. Administer documents and materials relevant to the decedent’s assets and liabilities (e.g. correspondence, contracts, creditor invoices, and tax returns).
3. Gather information regarding and value of non-probate assets (e.g., life insurance, joint bank accounts, “POD” accounts, or trust assets).
4. Review the decedent’s testamentary plan with the estate’s beneficiaries.
5. Search for any unknown assets or heirs who need to be located.
6. Determine whether and to what extent probate court proceedings are needed, or whether the amount and type of property covered by the Will means it can be distributed without probate.
7. As an alternative to probate, determine whether there exist simplified procedures to allow the immediate transfer of assets to estate beneficiaries.
8. File the decedent’s Will (and any Codicils) with the appropriate court.
9. Prepare and file with the appropriate court the relevant pleadings so that you can be qualified and appointed as PR (e.g., waivers, oaths, bonds, notices and petitions).
10. Send the appropriate legal notices to relatives of the decedent who may have been entitled to the decedent’s estate if there was (or is) no Will.
11. Secure and valuate probate and non-probate assets, including obtaining appraisals if necessary.
12. Terminate service contracts and leases, notify government agencies (e.g., social security, Medicare, V.A.) of the decedent’s passing and that you are the estate PR.
13. Manage probate assets during the period of administration: a) Open appropriate bank and brokerage accounts to hold estate money and assets, b) Invest cash balances in interest-bearing money-market or equivalent funds to satisfy prudent investor requirements, c) Establish and maintain all books and records of the estate for accounting(s), d) Maintain sufficient cash assets to pay ongoing needs of the estate (e.g, mortgage payments, utilities, taxes, insurance).
14. As to estate creditors, a) Pay any debts that the estate is legally required to pay, b) Notice any “reasonably ascertainable” creditors of the estate administration. c) Determine the validity of claims against the estate and whether to formally object to invalid claims.
15. As to estate taxes, a) Prepare applicable IRS. forms (e.g., SS-4, 1041, W-9, Notice of Fiduciary Relationship) for execution by all appropriate parties and file same with IRS, b) File decedent’s final income tax return (1040) and pay any taxes in a timely fashion to avoid penalties and interest, c) See that the estate receives any income tax refund for tax overpayments, d) Arrange for estate representation by CPA on routine audits.
16. Prepare, and serve the estate inventories (initial and amended).
17. For federally taxable estates, a) Consider post-mortem planning in conjunction with attorney for estate and tax advisors, b) Obtain Federal estate tax closing letter, b) File federal estate tax return (form 706) along with estimated estate tax payment, d) Revalue assets as of six months after date of death for federal estate-tax purposes.
18. File petition to recognize homestead and obtain order re same (as to Florida real estate only).
19. Distribute assets to satisfy all estate beneficiaries and heirs.
20. Prepare and obtain receipts, and where necessary, refunding bonds, from beneficiaries and heirs and file same in court.
21. Prepare, serve and file accountings as necessary or obtain waivers re same.
22. See that all estate costs and expense are paid, including funeral and administrative expenses, court costs, attorney’s and accountant’s fees.
23. Prepare a Discharge of Personal Representative and file same in court.
24. Complete plan of distribution as set forth in final Order Closing Estate and close estate.
The above list is not intended to include all duties but is illustrative. Depending upon the nature of the estate assets and the value of the gross estate (including both probate and non-probate assets), many of these duties may be expanded or eliminated. For example, if real estate or business assets must be sold, additional steps may need to be taken to protect, insure, manage, and then actively market and sell the property or business. If creditor claims are contested, separate litigation, including mandatory mediation, may be required.
For sizable estates, services relating to the preparation and filing of a federal estate-tax return (form 706) will be necessary, and advanced post-mortem estate planning is strongly advised. For any such additional legal and tax-accounting services, appropriate professionals should be engaged by the Personal Representative.
Contact Feldman & Feldman, Counsellors at Law, P.A.
For guidance and counsel in administrating an estate plan, call our Coral Springs office at 954-228-6074 or reach us through our online contact form.