What Is A Personal Representative?

What Is A Personal Representative?

By Melinda Gustafson Gervasi

March 17, 2021

Are you delving into writing your own will?  Chances are you might be struggling with some of the legal jargon associated with Estate Planning & Probate.  Take a short pause and educated yourself on the various legal terms to minimize confusion or misunderstanding when you draft a document.  Here are a few suggestions for deepening your knowledge of a key role in an estate plan, the Personal Representative

What is a Personal Representative:  This person is appointed by a court to administer the estate of a deceased individual.  In my home state of Wisconsin, the term Personal Representative is used.  However, other estates use the more familiar Executor or Executrix.  There are 50 different states in America.  Each has it's own laws governing estate planning and probate since the topic is a state's issue rather than a federal issue, such as immigration.  As a result, you need to determine what term is used in your state of residence.  Precision is key -- I have heard people refer to their "executive" or my personal favorite, their "executioner" -- both may cause a slight bit of confusion when a probate court reads that will.

Why it is important.  The Personal Representative's job is to handle the final affairs of the deceased.  This may include selling assets, filing income taxes, distributing personal and or digital property, paying bills of the deceased, and emptying the contents of the decedent's home.  The Personal Representative has a fiduciary responsibility to the estate's beneficiaries. Many people wonder if a will or trust would be the best vehicle to use in estate planning; they want what will be easiest on their loved ones.  Personally, who you name to handle your final affairs is far more important than what type of document you use.  If you nominate the wrong person, it will be a mess.

Who is an ideal candidate.  My suggestion when figuring out to name as your Personal Representative (or Executor) is to aim for Switzerland.  Who is neutral, precise, and efficient.  Many people assume their eldest child will be the natural selection.  Caution -- is that person well suited to handle financial matters, taxes, and family discussions?  Sometimes a party outside of the immediate family will decrease the chances of family drama occurring when the estate is being finalized.  Precision is key because in the end, a Final Accounting will be submitted to the court showing every penny that went into the estate (sale of home and car, bank accounts, interest earned, US saving bonds, refunds, etc.), and where every penny went (bills, mortgage, taxes, distribution to heirs, etc.). And by "every penny" I literally mean every penny.  Precision is key.  And last, who is efficient?  Here in Wisconsin the court system assumes a probate will open and close within 12 months.  That is not always the case if there are tax filing delays (which is common for 2020 and 2021 filings), and an extension can be granted.  Who can stay on top of the paperwork?  Who can tackle this job while grieving?  If you sit back and realize "no one" in my circle of family or friends meets this criteria, know you can look to an institution.  For example, the wealth management division at your bank or an accounting firm.

Image by M. Gustafson Gervasi 2021

It's never too early to nurture precise habits in the next generation.  To the left, my son working on his throwing aim.  Below, my daughter being precise on the figure skating ice. 

Image by M. Gustafson Gervasi 2021

Thank you for reading.  Remember, a blog is NOT legal advice.  Rather it is meant to spur thought and discussion.  Please consult a licensed attorney in your state of residence for advice on your specific situation.