In the wake of grief after a friend or loved one passes away, some people may be startled to learn that they were either named by the decedent or the Texas probate courts as personal representative of the estate. What happens then?
Make no mistake, this is a major responsibility that should not be accepted and then taken lightly. Find out more about the responsibilities of personal representatives to decide whether or not you are the right person for the tasks at hand.
It’s a position of trust
If your deceased loved one or the probate court appointed you as personal representative, it was because they felt that you were up to the job. But their assessment could still fall short of the mark.
You likely won’t be paid
Many times, someone appoints a relative or close friend to execute their estate administration duties without bond or compensation. That means that there is no requirement to be bonded, but you will not get paid from the estate for the services you render.
If that is untenable and a sticking point, it may be possible to petition the estate for a stipend to be paid from its proceeds to cover your expenses and fees.
But you bear liability for errors and lapses
One potential problem that gives many estate planners pause is their being on the hook to the estate and its beneficiaries and heirs for any mistakes that might be made during probate. This alone can be enough of a red flag to cause potential personal representatives to decline the appointment.
You can honor the friend and protect yourself, too
One way to remain personally protected but still carry out your loved one’s wishes is to retain the services of an estate administration professional to manage the nuts and bolts of the estate. That can be a win-win situation for all parties.