SOME DUTIES OF A PERSONAL REPRESENTATIVE

Once a personal representative has court authority to act as administrator of the decedent’s estate, there are many responsibilities to meet. This article identifies the general duties required of a personal representative whether acting in a supervised or unsupervised administration.

A personal representative is the person appointed by a probate court to administer a decedent’s estate. Until 1979, this person was called an administrator or an executor. 

If decedent had no will, the personal representative is appointed according to the statutory list of persons having priority. Sometimes the court appoints the person agreed upon by the interested persons. MCL 700.3203

When making a will, a person nominates an individual most preferable to administer the estate. Usually the testator will also name a second choice in the event the first nominated person is not appointed as personal representative. The person named in the will has first priority for appointment as personal representative.

A personal representative has duties stated in various laws. Most are found in the Estates and Protected Individuals Code. Some can be found in laws, like the Internal Revenue Code. The personal representative is required by that code to file final income tax returns or gift tax returns on behalf of the deceased, or file a federal estate tax return. An income tax return may also be required for the estate.

All personal representatives acting under the authority of EPIC have very broad powers to do nearly every act to fully administer a decedent’s estate. For an extensive list of many of the powers of a personal representative, see MCL 700.3715.

In supervised administration, the personal representative cannot make any distribution of estate assets without prior court order. The court can also place specific limitations and restrictions on the unlimited authority of the personal representative in supervised administration. 

Additionally, interested persons can file petitions asking the court to order the personal representative to do certain acts or not to do specific acts. The orders then issued will also result in a change of the authority given by statute.

This article will focus on some of the duties of personal representatives rather than their authority. A personal representative’s duties are too numerous for complete coverage in this article. The focus will be on those required for all estates and those most likely to affect the average person involved in an estate administration.

Perhaps the most important duty of a personal representative to the presumptive distributees is to keep them informed of the estate administration. There is no specified way of doing this other than a requirement to annually account for all financial matters.

The required account must be in writing and itemize all income and disbursements. Each account must identify the property belonging to the estate. It must include any distributions made to beneficiaries. These could include gifts made in the will or partial distributions to heirs. 

There is no special form required for this account. Many times the state approved form for accounts that are filed with the court is used. When the estate is ready to be closed, a final account must be sent to the remaining beneficiaries.

Another duty of every personal representative is to identify, locate, and protect the estate assets. Sometimes this requires extensive searching of records in the decedent’s home and many locations outside of the home like banks, brokerage firms, and public records.

Once the assets of the estate are determined, each item must be valued and an inventory prepared. If the estate is unsupervised, the inventory is not filed with the court although it can be. It must be given to all required persons within 91 days of the appointment of the personal representative.

Every personal representative must notify known creditors of decedent’s death. The unknown creditors must also be notified by publishing a notice in a newspaper published in the county of residence of decedent. Creditors have four months after the publication to present the claim to the personal representative.

The personal representative must determine whether the creditor’s claim against the estate is valid. Unpaid utility bills and insurance premiums are usually easily determined. Claims for medical care and credit cards are not so easily determined. If the personal representative denies the claim, the creditor must file a lawsuit.

Another very important duty is to expeditiously and efficiently administer the estate. Some estates are very complicated and require extensive time and effort by a personal representative to properly administer. These estates require many months to complete. When a federal estate tax return is required, an estate will require more than a year to administer.

Other estates are simple and uncomplicated. Prompt attention to the affairs of the estate will result in a quick administration. Generally, estates must be open for at least four months after the notice to creditors is published. Once that is done, the uncomplicated estate should be able to be completed, the assets distributed to the estate beneficiaries, final documentation filed with the court, and the estate closed.