Even professional trustees, such as trust companies, receive complaints from a beneficiary from time to time. The best way to deal with them is to do your best to avoid them in the first place by following the guidelines outlined in this FAQ and consulting with an experienced estate administration lawyer. Many complaints arise because beneficiaries are not kept informed about the administration of the trust or estate. Frequent communication with beneficiaries is essential. The best approach in all cases is to be proactive by communicating throughout the estate or escrow administration process and handling all issues with the appropriate formality. If a complaint is not limited to routine matters, consult a fiduciary and probate lawyer. To be appointed as a personal representative, a person must have the capacity to enter into a contract. Most States have a hierarchy for the appointment of the personal representative. For example, the UPC order reads as follows: As part of administrative tasks, the personal representative must legally inform known creditors and potential creditors of the death of the deceased. Creditors usually have a prescribed time limit (six months in Maryland) to file claims against the deceased`s estate.
At the end of this period, the personal representative must pay all legitimate claims against the estate. Failure to file a claim against the estate within the prescribed period forever excludes a creditor`s future claims (but not all state and federal claims). It should be noted that before payment, the personal representative must check the validity of all claims against the estate. After a person`s death, their assets are accumulated, business affairs settled, debts paid, necessary tax returns filed, and assets distributed as directed by the deceased (commonly referred to as the “deceased”). These activities are usually conducted on behalf of the deceased by a person acting in trust, either as executor (called a personal representative in some states) or as trustee, depending on how the deceased held their property. To protect the interests of beneficiaries, most states require that the personal representative receive an escrow (usually for twice the value of the estate`s personal property), unless the will contains a provision waiving this requirement. Once the letters of appointment of the personal representative have been issued, the court still has the power to revoke them if they should not have been issued in the first place. Common reasons include: Finally, the appointment of the personal representative ends. This usually happens when the administration of the estate is complete. In addition, the appointment may be terminated prematurely if the personal representative dies, becomes disabled, commits misconduct or does not have the characteristics required by the person. In particular, failure to perform the required tasks is a reason for deletion. See, for example: In re Estate of Frey, 693 A.2d 1349 (Pa.
1997). A personal representative is usually named in a will. However, the courts sometimes appoint a personal representative. As a general rule, whether the deceased left a will or not, the probate court will conclude that a will has been filed or not and that a personal representative or administrator has been appointed. The personal representative uses this document with the death certificate to manage the affairs of the deceased and dispose of his estate. Compare that to signing the contract: “Darrell Humphries, executor.” The latter method of signing the contract does not exclude Darrel`s personal liability, unlike the former. Once approval is granted, the executor receives testamentary letters (or letters of intent for an administrator) giving the personal representative the authority to act on behalf of the deceased. Unless expressly authorized by the court or will, the personal representative does not normally have the duty or authority to operate a business owned by the testator. If he does so without express authorization, the personal representative is personally liable for any losses and is personally responsible for the reimbursement of profits resulting from this transaction. See, for example: In re Kurkowski`s Estate, 409 A.2d 357 (Pa. 1979).
In most cases, the court appoints a person called a personal representative to collect, manage and transfer estate assets to heirs or heirs. If the testator has left a will, the court decides whether the deceased`s will is valid. A qualified person with legal precedence has the right to be appointed as the personal representative of the estate before any other person. During the administrative period, the trustee must provide an annual income tax return (called Schedule K-1) to each taxable beneficiary on the income earned from the trust. The trustee must also file an annual tax return for the trust. The trustee may be held personally liable for interest and penalties if the tax return is not filed and tax is paid on the due date, usually April 15. At common law and in most states, a personal representative is personally liable for all offences committed by himself or his representatives in the administration of the estate. However, he may be entitled to compensation from the estate for this liability if: (1) he was not personally guilty and (2) there was no breach on his part of his duty of care in assuming his responsibility (for example, the offence was committed by an agent or employee with due diligence).
In order to avoid this result, it would be desirable for the personal representative to take out third-party liability insurance and charge the premium to the estate. The personal representative owes his duties to the estate and beneficiaries of the deceased. It may also have obligations to others, such as creditors of the estate. There are two types of personal representatives who oversee the settlement of the deceased`s estate: (1) an executor is the person named in the deceased`s will, and (2) an administrator is appointed by the court to administer the estate of a deceased person without inheritance. A personal representative or legal personal representative is the executor or administrator of the estate of a deceased person. Personal representatives act as trustees of estate beneficiaries and have a duty to act in good faith, with honesty, loyalty and openness, and in the best interests of the beneficiaries of the estate. The law requires personal representatives to follow the terms of the deceased`s will, if the deceased had one. If the deceased person died without succession, the personal representative acts as administrator of the legal estate. A personal representative is a trustee who can be named in a will or otherwise chosen by a court. A personal representative is responsible for initiating and supervising probate or intestate succession proceedings, including collecting the deceased`s property, sending notices to the deceased`s creditors, paying or otherwise settling the debts duly claimed by the deceased, and distributing the assets of the deceased`s estate to the beneficiaries. Estates can be closed when the executor has paid all debts, expenses, and taxes, received tax authorities from the IRS and state, and distributed all existing assets.
Trusts expire when an event described in the document, such as the death of a beneficiary, or a date described in the document, such as the date on which the beneficiary reaches a specified age, occurs. The trustee will then have a reasonable period of time to make the actual distributions. Some states require that a petition be filed in court before assets are distributed and the estate or trust is closed. If such formal procedure is not required, it is always good practice to require all beneficiaries to sign a document prepared by a lawyer approving your actions as trustees and confirming receipt of the property to which they are entitled. This document protects the trustee against subsequent claims by a beneficiary. These formalities are recommended even if the other heirs are relatives, because this alone is never a guarantee that one of them will not have a problem and will make a legal claim against you. Finally, a final tax return must be filed and a reserve for taxes or estate fees due but unpaid must be withheld. First of all, the personal representative must open the succession by submitting the request for inheritance documents. This requires the presentation of an original death certificate as well as certain other documents to the register of wills (or the competent court). In general, an estimate of the death value of the estate assets must also be submitted.
Once the estate is opened, the personal representative receives the necessary comfort letters giving him or her legal authority to act on behalf of the estate. Until these letters are received, it may be difficult for designated personal representatives (as well as any other family members) to gather information about the assets of the deceased`s estate. Administrator: A personal representative appointed by the court to administer the estate of a person who died without a will.