A Trustee is an individual, a group of individuals, or a corporate body who holds personal or real estate property, including money or other assets, in trust on behalf of the ultimate beneficial owner. The cookie is used to store the user consent for the cookies in the category "Performance". The difference between a personal representative and an executor is an executor generally refers to a person named in a will and a personal representative is not named in a will. We recommend you consult a lawyer or other appropriate professional if you want legal, business or tax advice. Additionally, if the person is acting in loco parentis (on behalf of the persons parent), they may be considered a personal representative. As the Estate's Executor, you're also responsible for communicating regularly . The moment you pass away, the personal representative that you have chosen is given the power to handle your estate. But opting out of some of these cookies may affect your browsing experience. of sound mind -- that is, not judged incapacitated by a court. The personal representative can wind down the estate by filing a closing statement with the court establishing that all the assets have been distributed in accordance with the will. Both roles come with important responsibilities, and the right person for the job will depend on your specific situation. Executors are typically named in a will, while administrators are appointed by a court. Many people don't understand why they need a Personal Representative AND a Financial Power of Attorney. Maintaining communication with beneficiaries and heirs. This means that they have ethical duties when they manage the affairs of other people. See TERMS Of USE for more information. When it comes to estate planning, one of the key decisions youll need to make is who to name as your personal representative. It's available whether or not the decedent left a will. There are many duties that a personal representative must fulfill if they are to serve in this capacity, including: There is a big difference between personal representatives and executors in terms of their responsibilities. T2W 4X9. What Is a Personal Representative? There are two main types of personal representatives: executors and administrators. Massachusetts General Laws Chapter 190B, Article III, Section 3-701 states "The duties and powers of a personal representative commence upon appointment." This appointment must be made by the Probate Court in the county where the descendant/testator lived at the time of his or her death. For example, a Trustee may hold and manage money for a minor beneficiary of an Estatethe Trustee is not entitled to use the money to benefit themselves, but rather they hold the money in trust for the ultimate benefit of the minor. A Personal Representative May Make Decisions. And why does the terminology need to be so confusing? Ga. 53-1-2(12) . The difference is in the timing. Personal Representatives have more control over how their decisions are implemented; however, trustees have more power to direct distributions to beneficiaries. They may also be called an administrator. In the petition, you will need to state your reasons for why you should be removed as personal representative or executor. Divorce decrees or other court orders are also considered to be part of the case and may be handled by a personal representative. Probate is the legal process of distributing a persons assets after they die. Basically, after your lifetime, a trustee is responsible for assets held in trust and a personal representative (sometimes also called an executor) is responsible for assets held in your individual name. 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. Generally, the secondary executors for a husband and wife are different, because naming in-laws can have some unintended consequences. Individuals usually choose their personal representative to be a family member or a close friend. Additional details may heavily alter our assessment and change the answer provided. Some of the duties that executors have to complete include the following: During the time in which the executor is controlling the assets of the estate, he or she is responsible for losses that occur. However, let's first start with the definitions of the two: Personal Representative (sometimes an Executor or Administrator) - this is when an individual has the right and responsibility to manage the finances, property, and other assets of the deceased; the individual is appointed [] If this occurs, the court can remove and replace a personal representative as long as there is a cause and it is in the best interest of the estate. Trustees, on the other hand, are not as common but can be an option if you dont have a personal representative. The personal representative or executor must also give notice to creditors, publish a notice to creditors, and file any required federal or state tax returns. The cookies is used to store the user consent for the cookies in the category "Necessary". Examples are a spouse or other family member named in a health care power of attorney, a parent or legal guardian of a minor, a person appointed by a court to . Preparing the final tax returns for the estate and paying any taxes due. Both your personal representative and your trustee are "fiduciaries". A personal representative may also breach his fiduciary duty by failing to provide beneficiaries with relevant information about the estates assets. Some states use the terms interchangeably, though. The Personal Representative These terms are often used interchangeably, with good reason. We are able to assist you with the initial paperwork and with understanding the different responsibilities that you might have. This means that a personal representative must not commingle his/her personal interest and finances with the finances of the estate, there must be clear boundaries at all times. An executor can be a family member, friend, or professional, but they must be over the age of 18 and have some financial expertise. When someone dies owning an interest in real estate, the legal instrument used to convey the property is a Personal Representative's Deed. Call us today or contact us online to schedule a consultation. It's the personal representative's job to make sure that all the deceased person's bills are paid, including any taxes, and to distribute the person's property to the family or other heirs. Whats the Difference Between Civil, Family & Criminal Law? This person will be responsible for tasks like paying bills and filed taxes, and they will also need to keep accurate financial records. Use professional pre-built templates to fill in and sign documents online faster. First, you will need to file a petition with the court that admitted the will to probate. An executor should be available to answer questions or help with the process of preparing an estate. 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. How Criminal Charges Affect Child Custody in Alberta, Alberta COVID-19 Vaccinations & the Workplace. The personal representative who has been appointed by the deceased person in his last will is called an executor. This individual has vast responsibilities and powers; therefore, your personal representative should be someone that you trust. Both Trustees and Executors/Personal Representatives are individuals who are selected by another person to be in charge of managing that person's estate after they have passed away. One of the responsibilities of a personal representative or executor is to open an estate bank account. Fill out this form and a member of our team will contact you shortly to schedule a consultation. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. In summary, the terms Personal Representative and Executor or Executrix can be used interchangeably, but, in Alberta, Personal Representative is the legally correct title for an individual who executes or carries out a Will. When an individual dies, the personal representative for the deceased is the executor or administrator of the deceased individual's estate, or the person who is . In the language of taxes, a personal representative is an individual responsible for handling the estate of someone who has died. A judge appoints an executor to oversee a person's estate after they die. Personal Representative. November 21, 2016. by Michael Smeenk. Personal representatives, executors, and trustees are all fiduciaries - a term that means they're entrusted to ethically and fairly deal with the affairs of others - but they can play very different roles in your estate plan . Persons Eligible to Serve While there are no specific qualifications for serving as a personal representative in Texas, there are rules for who can serve and rules that disqualify certain people from . Required fields are marked *. Personal representative A person who has been issued with a grant to administer a deceased person's estate. Completing government paperwork, such as a death certificate, if the person is not already deceased. So whats the difference between an Executor/Executrix, a Personal Representative and a Trustee? Whichever type of a personal representative a person might be, he or she will be considered to be a fiduciary. This cookie is set by GDPR Cookie Consent plugin. It can refer to any of the following: executor; administrator, or; administrator with the Will annexed. At Elder Care Direction, we can offer you some guidance whether you are trying to figure out what the different terms mean or if you need some help with understanding the responsibilities that you have. However, they can play different types of roles in an estate plan. 304.001. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. Personal Representative vs. The cookie is used to store the user consent for the cookies in the category "Other. There are a few ways to resign as a personal representative or executor. If a will was not left behind, the estate will still need to be probated. Been unable to discharge his/her duties due to mental or physical incapacity. This is usually done by filing a formal petition with the court. While "Executor" and "Personal Representative" are now used interchangeably, any Will drafted post-2012 should use the term "Personal Representative." Executor/Personal Representative- The person named in a will to handle the assets of a deceased person's estate and to carry out the instructions in the will. A court may hold an executor personally liable for any losses. If someone named you as their personal representative or executor in their will, but you are no longer able or willing to fulfill that role, there is a process you can follow to have your name removed. If there is no other heir, the personal representative will have to create one through an affidavit or testimony in court. 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. TABLE OF CONTENTS The term Executor comes from the Executors responsibility to execute, or carry out and follow through on, the wishes and intentions of the Will-maker. (a) The court shall grant letters testamentary or of administration to persons qualified to act, in the following order: (1) the person named as executor in the decedent's will; (1-a) the person designated as administrator as authorized under Section 254.006; The deceased may have left behind a house, bank accounts, RRSPs, investments, bonds, stocks, personal belongings, and other possessions that you're now responsible for. This cookie is set by GDPR Cookie Consent plugin. For example, if the person has direct legal control over the persons assets and can take steps to protect those assets from being seized or shared with others, they may be considered a personal representative. The administrator will also have to file final tax returns and distribute the assets under the states intestacy laws. document.getElementById( "ak_js_2" ).setAttribute( "value", ( new Date() ).getTime() ); Our team of highly trained attorneys have over 100 years of combined higher education, are fluent in 8 languages, and use cutting edge technology to beat the competition. (a) This section does not apply to the removal of a personal representative under section 6 of this chapter. Key takeaways The executor and administrator essentially have the same responsibilities for administering the estate and overseeing the probate process except that he shall not exercise powers given in the will which by its terms are personal to the executor therein designated . A personal representative must be careful not to commingle their personal assets with that of the estate as this is a breach of fiduciary duty. An executor is a personal representative named in your will. Personal Representative (Executor) Responsibilities, Temporary Layoffs: What Alberta Employees Need to Know, Updates to the Alberta Employment Standards Code, Holograph Wills: Creating a Will During Uncertain Times, Emergency Financial Assistance from AB Government, Duty to Accommodate: Best Practices for Employers, Best 5 Employer Options During the Coronavirus Pandemic, Alberta Court Closures: How You Might Be Affected. When it comes to handling personal finances, executors often come across as more experienced and qualified. We did a little digging into Albertas legal history, in hopes that youll come away from this article with a clearer picture of Estate law terminology. However, a person under the age of 18 cannot serve as an executor, nor can . This includes distribution of assets, paying debts and taxes, and resolving any outstanding legal issues. Distribute the assets to the beneficiaries. Address The following article will break down the responsibilities of a . A personal representatives fiduciary duty is the same as the fiduciary duty of a trustee. receive and pay the claims of creditors and tax collectors; and. A Fiduciary or Executor may be tasked with managing these various responsibilities on behalf of the deceased. Personal Representatives (PRs) are individuals who are appointed by a court to handle property, estate, and financial matters on behalf of their clients. Publishing a Notice of Creditors to put creditors on notice of their right to be paid for debts incurred by the descendants. The different stages of probate; 2. The personal representative, sometimes called an executor, gets her power from the probate court. Executor (or executrix if female) is the traditional term for the person named in a will (and subsequently appointed by the probate court) to oversee the estate of a person who has died with a will. COVID-19: Can Employers legally require their employees to be vaccinated? Personal Representatives are the most common type of executor, and theyre responsible for managing and distributing the estates assets according to the will or trust instructions. Estate Trustee. Please Note: The difference is important because Nevada discriminates against out of state Administrators but not out of state Executors. When looking at the roles of a Fiduciary vs Executor, there are key differences in what each title entails and how they can be involved in the Estate Planning process. 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. #1200, 10201 Southport Rd SW No matter how you choose to resign, its important to do so as soon as possible. Whether a person charged with this responsibility is called an executor or administrator depends on whether he or . A personal representative is an individual that you appoint while preparing your last will and testament. Thankfully, in 2012, Alberta lawmakers combined the various pieces of Wills and Estates legislation into two comprehensive acts: The Wills and Succession Act and the Estate Administration Act. He or she must notify the interested parties and the creditors. POSSESSION OF PERSONAL PROPERTY AND RECORDS. Alberta A trustee, on the other hand, is the manager of one of your living trusts. This includes identifying and valuing the assets, paying any debts and taxes owed, and distributing the remaining assets to the heirs. Many people are unfamiliar with the term "personal representative" and wonder if it's the same thing as being an executor of an estate. The personal representative, on the other hand, may make financial decisions and transactions on behalf of that person after the person's death. While Wills didnt originate in England, the term Executor finds its origins in the English legal system. If you've been appointed as an Estate Executor, or Personal Representative, for the first time, it can be daunting to know where to start. As such, the Personal Representative must act honestly and in good faith and keep careful records of their handling of Estate assets. For a more thorough review of your question please contact our office for a consultation. The main difference between personal representatives and trustees is who is in charge of decisions regarding the estates disposition. This means that they have ethical duties when they manage the affairs of other people. Trust and Estates lawyers Boca Raton know that there's an order of preference that is supposed to be observed in evaluating and appointing someone as a personal representative of a Florida probate. When someone dies, their estate must go through probate. In South Carolina, however, there is no statute prohibiting you from naming an executor who has been convicted of a felony. The term personal representative is used in the Trustee Act. A deceased grantor's personal representative, executor or administrator cannot sign a quitclaim deed to transfer property from the estate. Calgary, Get Form How to create an eSignature for the personal representative of this estate state the following Personal Representatives of an estate in Massachusetts are responsible for carrying out the specific instructions in your estate plan. The person whom you nominate to settle you estate is your "personal representative,"sometimes called your "executor". 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 persons estate. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Your email address will not be published. Removal of personal representative following a change in control of a corporate fiduciary Sec. After considering all of the evidence, the court will decide whether or not to remove you from your role. Executor The term Executor is used as the title for the person managing the estate when the deceased left a valid last will and testament. Ultimately, the decision of who to appoint as your personal representative or executor is up to you. An executor should be able to read and write English, and have a high school diploma or equivalent. A person who manages the financial affairs of another person who is unable to do so. Three common titles for the person managing the estate are executor, administrator, and personal representative. Helping You Navigate the Pitfalls of Elder Care, lawyers and they also do not provide legal, business or tax advice. An estate administrator is someone who is appointed by a court to manage the assets of a deceased person who dies without a will. If this happens, the government will step in and determine how to distribute the deceased persons assets. Personal Representatives (PRs) are individuals who are appointed by a court to handle property, estate, and financial matters on behalf of their clients. Save my name, email, and website in this browser for the next time I comment. If you are named as the Executor in a will a Nevada probate court will appoint you (if the will is valid and you have not been convicted of a felony and are not . A trustee is an individual who has been appointed to hold the property in a trust for the benefit of any beneficiaries of that trust. NRS 138.010 Powers of personal representative before issuance of letters. When someone dies, they leave behind a lot of unfinished business. Our sites and services are not substitutes for the, or services of an attorney. 1. Employer Obligations on Federal Election Day 2021. "Personal Representative" under HIPAA means a person who has legal authority to make decisions related to health care for an individual. Each of these titles has a unique meaning, and we will go over each one. . We also use third-party cookies that help us analyze and understand how you use this website. Probate proceedings can be informal or formal. A personal representatives duty is to the beneficiaries at all times. If possible, it is best to name someone who can work well with others and who has the time and energy to devote to settling an estate. A personal representative must properly administer the decedents estate in the interest of the beneficiaries. What Is Legacy Planning and Why Is It Important? The court will then schedule a hearing, at which both you and the person who named you in the will can present your respective cases. But what is the difference between these two roles? For more information on the difference between a trustee and personal representative, please contact Antonoplos & Associates at 202-803-5676. Analytical cookies are used to understand how visitors interact with the website. What Is the Death Tax and How Does It Work? These cookies ensure basic functionalities and security features of the website, anonymously. A personal representative is an individual that you appoint while preparing your last will and testament. Often, PRs have more experience in the legal field than executors. While Executor and Personal Representative are now used interchangeably, any Will drafted post-2012 should use the term Personal Representative. Similarly, other formal documentation in Alberta typically refers to someone who formerly wouldve been known as an Executor or an Executrix as a Personal Representative. The role of the executor is to settle the estate, which includes paying any debts and distributing any assets according to the instructions in the will. It does not have to be a relative or a beneficiary of your estate. This individual has vast responsibilities and powers; therefore, your personal representative should be someone that you trust. However, personal representatives have the ability to handle more complex estates with greater expertise. Once the minor reaches a certain age, the Trustee transfers any remaining funds to the beneficial owner (the now-adult child), and the Trust is dissolved. If the person named in the will is a male, he is technically called an . The personal representative must not only identify the common, easy to find assets, including real estate and investment, but he/she must also identify assets that are a bit less common, including company benefits and dividends. A personal representative will represent your wishes and interests in your county's probate court. In other words, the Personal Representative holds the Estate property for the benefit of the beneficiaries named in the Will. There are a variety of executors and personal representatives available to handle estate planning for individuals. The executor must maintain records of all proceedings in the estate, and keep track of all money, assets, and liabilities in the estate. Because Canadian law is based on the English common-law system, the term Executor was inherited from England and formally used throughout Alberta until 2012, when it was replaced by the term Personal Representative.. Sec. Individuals who get nominated as an estate's personal representative in a will are usually called the executor. If there is more than one personal representative or executor named in a will or estate planning document, the court will usually appoint one of them to serve. In addition, dying intestate can cause financial hardship for the deceased persons family, as they may have to bear the cost of the estate administration process. This website uses cookies to improve your experience while you navigate through the website. An estate executor is usually named before the deceased has passed away and ensures that it gets filed with the Register of Wills to begin the probate process. The property included in a will must be transferred using a personal representative deed, but this deed carries no warranty that the grantor owns the property. Once youve resigned, someone else will need to be appointed to take over your duties. There is not a major difference between an executor and a personal representative, as both are often used interchangeably. This account is used to deposit money that belongs to the estate and to pay bills and expenses related to the estate. Save thousands and eliminate the stress of dealing with financing solutions. [] ECD has a cost savings solution for nearly every situation. Get access to thousands of forms. Contact our DC Law Office for More Information. Miami, FL 33135. An Executor is the person named in the decedent's valid will to administer the estate and who accepts the appointment to serve by qualifying as executor. A personal representative is an umbrella term that can refer to either an executor or to an estate administrator. At West Legal, we take a People First approach. This cookie is set by GDPR Cookie Consent plugin. Or, you may have even heard the more archaic term Executrix used to describe a female Executor. The duties of an executor vary with the type of estate and the special circumstances involved. 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. Here is key difference between personal Representatives and Executors: Personal representatives are responsible for the care and well-being of the person represented. Administrators, however, are often required to post a bond for the entire value of the estate. Inventory and value the probated property; Contact the beneficiaries who have been named in the will; Pay estate, state, and federal income taxes; and. Our sites and services also provide services to lawyers and other legal professionals. A Legal Personal Representative (LPR) is the name given to the representative of an estate at law. An executor executes the directions outlined by the deceased in his last will. distributed to beneficiaries under a will or trust. Executor An executor (or "executrix" for a female) is the person (s) or entity named in the decedent's will to manage the decedent's affairs and settle the decedent's estate pursuant to the terms of the decedent's Will. See, Pennsylvania Guardianship: What You Need To Know. Where there is no will, the LPR is the Administrator of the estate appointed by the Supreme Court. Quick Note: if someone dies without a will, has not named an executor, or the named executor does not want to or cannot act in this capacity, the . The personal representative plays an important role in ensuring that a deceased persons wishes are carried out and their assets are distributed according to the law. You can name just about anyone as your executor. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. Your executor must be: at least 18 years old, and. In many States, the word used is an "Executor." Maryland has some legal rules with respect to who can be chosen as a Personal Representative. The cookie is used to store the user consent for the cookies in the category "Analytics". These cookies track visitors across websites and collect information to provide customized ads. This is where the role of a personal representative or executor comes in. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. You can also directly schedule a consultation with one of our attorneys. These cookies will be stored in your browser only with your consent. If you need further legal assistance, we can refer you to one of our partner attorneys. The court will appoint a personal representative or executor to oversee this process. 6.5. Florida Statute 733.301, part of Florida's Probate Code, lists the preference in appointment of a personal representative. The first is to request permission from the court. This is the most common route: they're named in the will as an heir but also assigned the role of watching over asset distribution. Personal representatives will oversee the distribution of your estate upon death, with or without the guidance of a last will and testament, while a trustee manages a . Your executor will be supervised by the probate court where your will is filed. You may only file this petition if you are an interested person in the estate, like a beneficiary or a creditor. The executor must manage the property and distribute it according to the testators wishes as they are outlined in the will. Further, the personal representative takes care of all the property in the will by ensuring that all taxes are paid in a timely manner, paying off debts, and distributing the property accordingly. An executor should keep copies of all documents related to a will and is required to preserve them for at least ten years. The second is to renounce your position. The experienced Wills and Estates lawyers at West Legal are currently booking face-to-face and telephone appointments and would be happy to consult with you. Form 1310: Statement Of Person Claiming Refund Due A Deceased Taxpayer: A tax form distributed by the Internal Revenue Service (IRS) and used by taxpayers looking to claim a refund on behalf of a . This means that trustees can make better decisions about what to do with money that isnt automatically distributed to beneficiaries under a will or trust instructions. ORDER OF PERSONS QUALIFIED TO SERVE AS PERSONAL REPRESENTATIVE. The Personal Representative The personal representative, also known as the executor to a will distributes all the estate property mentioned in the will. Executors are typically named in the will, but if there is no will, or if the named executor is unable or unwilling to serve, the court will appoint someone to serve in this role. Wills, in the sense that we think of them today, originated in Ancient Greece, although examples of bequests and inheritances can be found even earlier in human history. (S.C. Code Ann. Since debtors have one year from your death to file a claim against your estate, it is often best to wait until that timeframe has lapsed before doing so. 62-3-203.) This can be a complex and time-consuming task, so it is important to choose someone who is up to the challenge. COVID Response: Employer Updates to Policies & Employment Agreements. Legal Personal Representative's Duties We recommend you consult a lawyer or other appropriate professional if you want legal, business or tax advice. An executor is responsible for the care and management of the estate after the death of someone who has died. Therefore, it is important to make sure that you have a valid will in place to ensure that your assets are distributed according to your wishes. Some people advocate for someone close to the person who died to take on this role, while others say its best left to a professional executor. This includes distribution of assets to heirs. The term personal representative refers to either an executor or administrator of a deceased person. This is called a breach of the duty of loyalty. A personal representative is one kind of fiduciaryan individual whom another has trusted to manage her property and money. A testamentary trust is a trust that is created by a Will. In many states, like Michigan for example, Executors are called Personal Representatives. Many states prohibit people who have felony convictions from serving as executor. A fiduciary duty is easily explained as the obligation to act in the best interest of whoever is involved, in this case the estate. Until a court confirms a Will and the person named therein to serve as a PR of a probate estate, that named person is ONLY nominated and does . If a will has been admitted to probate, the court shall direct letters thereon to issue to the personal representative named in the will, who shall appear and qualify. Executive Summary: The following is a memorandum our firm gives to the person named as Personal Representative (in other states this role is referred to as the "Executor") in the decedent's will, or who is entitled to be Personal Representative under Florida law. (You may also have heard this responsibility previously referred to as "Executor." Voluntary administration Voluntary administration is a simplified process for an estate with few assets and no real estate. Suite 510 Ultimately, the decision comes down to what feels right to the individual. Informal renunciation usually involves simply notifying the court that you are no longer interested in serving as the personal representative or executor. The powers that a personal representative will have once . 777 SW 37th Ave Keep in mind that this is a big responsibility, so choose someone you trust to carry out your wishes. Copyright 2022 EPGD ATTORNEYS AT LAW, P.A. And which one should you choose for your situation? What Are The Legal Requirements of a Will? Sec. In those states, a surviving spouse may choose not to serve as the administrator. Heres What to Know, Crypto casino is the best choice for gambling people, How Blockchain Technology Is Eating Into The Money Transfer Markets, Monaco real estate investment; a secure economic environment, Everything You Need To Know About Multi-Year Annuities, Where to Find the Best Trading Platforms in the UK, Four Aspects of Gaming That Can Be Investments. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". For example, an executor has more authority than an administrator, and may have to post a bond in order to be appointed. The role of the executor is to pay your bills, manage your property so it does not lose value and distribute your property to the persons named in your will. This website or its third-party tools process personal data.In case of sale of your personal information, you may opt out by using the link. The personal representative, when he is not named by the deceased, is appointed by a probate court and known as the administrator. Formal proceedings are done in front of a probate court judge. However, there may come a time when the personal representative or executor can no longer continue in this role. In cases where a custody decree exists, the personal representative is the parent(s) who can make health care decisions for the child under the custody decree. This can sometimes lead to conflict, so it is important to choose personal representatives carefully. Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors. The word "independent" denotes that the . Conclusion While each role is very different, the roles are important as they each achieve the goals set forth above, namely making sure your children are taken care of in the event that you are not around. When you fail to comply with these actions, you are breaching fiduciary duty. *Disclaimer: this blog post is not intended to be legal advice. Lets start by going back in time. Here is a quick primer. We are not lawyers or a law firm and we do not provide legal, business or tax advice. Some people choose multiple executors in order to ensure the estate is handled fairly and honestly. The executor has a fiduciary duty to manage the estate in a responsible manner and to act in the best interests of the beneficiaries. An estate is all the property you owned at the time of death, and settling the estate means transferring that property to new owners. The term "personal representative" is merely a gender neutral appellation for "executor" or the feminine form, "executrix." An individual who is granted specific or general authority by power of attorney to act on behalf of another may also be called a personal representative. As you consider who to name as your personal representative, its important to weigh all of the pros and cons before making a decision. The judge would then move to the next person on the list under the statute of who may serve. Both types of personal representatives have similar duties, but there are some important differences to keep in mind. How Has COVID-19 Affected The Legal World in Alberta? Florida law provides a procedural and statutory guide which sets for the rights/powers and obligations of an Executor in the State of Florida. Some choices may be more important than others, but both options have their own pros and cons. There is cause to remove a personal representative when he/she has: If you believe that the personal representative to a certain estate must be removed, you must file a petition for removal in a court that has jurisdiction of the estates administration. Even if a will names an executor, the judge has the opportunity to name that person or choose someone else. An executor is the person named in a will to manage a deceased person . An important difference between administrator and executor: Most executors are not required to post a bond. Here are some things to keep in mind as you make your decision: If you want someone to handle the day-to-day tasks of managing your estate, a personal representative may be a good option. State law may dictate the person who may be appointed by a court to serve as the administrator. Court documents should be prepared using the more accurate term executor or administrator rather than the informal term personal representative. These expenses will be taken out of the estates assets. The executor also must provide financial support to loved ones when necessary. In some cases, the personal representative may be required to post a bond in order to ensure that they faithfully discharge their duties. distribute the remaining assets to the decedent's beneficiaries. This cookie is set by GDPR Cookie Consent plugin. The Personal Representative fulfills the same duties, has the same responsibilities and is the same person as the individual formerly described as an "Executor" or "Executrix". Additionally, an estate may have funeral expenses or outstanding debts that must be paid. Each new Act replaces the terms Executor and Executrix with the term Personal Representative. The Personal Representative fulfills the same duties, has the same responsibilities and is the same person as the individual formerly described as an Executor or Executrix. The words executor, independent executor, or personal representative of an estate signify a man named by the maker of a will to probate an estate, pay the deceased person's debts and last illness expenses, distribute assets, and otherwise carry out the terms of the will after the maker of the will dies. Necessary cookies are absolutely essential for the website to function properly. It can be difficult to decide who should be named personal representative of an estate in a situation where there are multiple heirs. If the decedent had a last will and testament in which the person stated who or what entity they wanted to serve as personal representative, the probate court judge will most likely honor that wish and appoint this individual. Did Your House Get Damaged? The most common reason for removing a personal representative is for breach of fiduciary duty. You also have the option to opt-out of these cookies. A personal representative owes his or her duties to the estate and the decedent's beneficiaries. When a person dies, a personal representative generally is required to settle the decedent's financial affairs. In practice, the term is commonly used in the broader sense of a person who is entitled to apply for a grant and administer the estate. Should I invest in additional life coverage? A court holds that a person may bring an action against the personal representative if he breaches his fiduciary duty by failing to administer the estate in good faith. Both of these people must be appointed by the probate court. Criminal & Family Law: How Do They Intersect? When a person dies without a will, it is called dying intestate. The terms are often used interchangeably. 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