People establishing estate plans have to make many significant decisions. People have to select their beneficiaries and decide what assets they should inherit. They also have to choose people to hold positions of authority.
The executor or personal representative of an estate has many different responsibilities. They collect and protect estate resources. They send notice to creditors and settle financial obligations. They attend probate court proceedings and distribute the state resources to beneficiaries.
A personal representative’s actions can drastically alter the final impact an estate has on beneficiaries. What characteristics can help make an individual a viable candidate for personal representative?
1. Proximity and availability
Technically, the personal representative of an estate can live across the state or even far away in another state, such as Texas. However, a significant distance can hinder their ability to fulfill estate administration responsibilities. Especially in scenarios involving valuable physical property, such as a home, choosing someone who lives nearby is often important.
Availability is another consideration. A personal representative has to commit hours of their time every week for months to a state administration. Those with young children or demanding careers may not be able to handle estate administration even if they live nearby.
2. Ethics and organization
The individual overseeing estate administration has to put the best interests of beneficiaries ahead of their own wishes. They have to preserve the value of estate resources to optimize what beneficiaries inherit. While they may receive compensation for their services, they should not use their position to enrich themselves.
Choosing people who have demonstrated a deep-seated sense of ethics is often crucial to ensuring that the personal representative fulfills their responsibilities appropriately. They also need to be organized enough to handle the various tasks of estate administration while simultaneously managing their own life.
3. Health and age
The medical state of an individual can also influence their fitness to serve as a personal representative. Those dealing with chronic medical conditions may not have the capacity to handle estate administration.
Older adults who may have retired could be at risk of cognitive or physical decline that prevents them from fulfilling probate responsibilities. Testators establishing their estate plans need to think carefully about whether candidates are likely to remain healthy and capable for years in the future.
Choosing the right personal representative and naming an alternate in case of an emergency are important steps during the estate planning process. Testators may need help selecting the best possible candidates to oversee the administration of their estates.