Serving as a personal representative is often both a responsibility and an honor. In scenarios where an individual asks a specific person to administer their estate after their death, that request is a clear indication of trust.
Responsible, trustworthy individuals may agree to oversee the administration of an estate and carry out the last wishes of someone they know personally. However, that honor comes with a degree of risk. Estate administration can strain relationships. Personal representatives also have a degree of liability throughout the probate process.
A personal representative may have litigation brought against them by beneficiaries of the estate or outside parties with an interest in the estate, such as creditors. How can personal representatives protect themselves against the possibility of a frustrating and expensive lawsuit during the probate process?
With experienced guidance
Even the most responsible, organized and intelligent individual might struggle with the responsibilities of estate administration. Some of the process is very counterintuitive, and seemingly small mistakes can have major consequences for the estate and the personal representative.
Personal representatives often do not have to pay out of pocket for the cost of legal representation. The estate usually covers probate expenses, including the cost of hiring a lawyer. Legal representation helps ensure that a representative fulfills their duties and avoids oversights that could expose them to liability.
With proper records and communication
Probate litigation targeting representatives may allege that they violated state law, failed to uphold the terms of the will, mismanaged assets, embezzled or failed to act. Therefore, keeping thorough records during estate administration is crucial.
Financial records and documentation of making personal property distributions to beneficiaries can help representatives counter claims that they have failed to fulfill their obligations. They can show heirs and beneficiaries that they appropriately fulfilled their responsibilities. Those records can also help them counter allegations by creditors and other outside parties that they did not properly allocate estate resources.
Effective communication with creditors, beneficiaries and other parties with an interest in the estate is also important. People may need information about the estate plan and the expected duration of the probate process. Creditors and tax authorities may need information about an individual’s passing, the assets in the estate and the distribution of property. Proper communication reduces the likelihood of conflict later.
Personal representatives who follow the right processes may significantly reduce the chances of probate litigation. They may also improve their chances of prevailing should they face challenges in probate court. Having support, keeping records and adhering to both state law and estate planning documents can help limit the liability that comes with serving as a personal representative.
