A personal representative manages financial affairs for another person, including executing a will and acting as a guardian for minors. They must have high ethical standards and act responsibly. They may work with a probate attorney and receive a fee from the estate. If appointed by a court, they are held to the same standards.
A personal representative is a person who is responsible for managing financial affairs on behalf of another person. The most common type of personal representative is an executor, also called an administrator, who handles the processing of a will. Personal representatives may also act on behalf of living individuals who are unable to manage their own financial affairs, such as when a minor needs a guardian because they are not allowed to make independent financial decisions.
The personal representative has total control over the financial affairs he handles, in most cases. This requires a person with very high ethical standards who behave with a high degree of responsibility. Personal representatives are generally responsible for handling the financial affairs for which they are responsible as if they were their own, bearing in mind the expressed wishes. For example, if a personal representative knows that a decedent wanted money donated to a charitable cause, the representative would ensure that this wish was honored.
With a will, the personal representative often works with a probate attorney, because the process can get complicated. The representative reads the will, informs the deceased’s creditors, and ensures that all bequests are executed as directed and that the terms of the will are met. In exchange for this work, the personal representative receives a fee which is paid from the estate. If the fee is not stated in the will, the probate court will determine the amount to be paid to the representative.
When conducting business on behalf of a living person, the personal representative is obligated to conduct business as closely as possible in accordance with the wishes of the person for whom the representative works. Representatives are also expected to handle accounts wisely and behave responsibly when it comes to determining how the money is to be used. For example, a guardian could not spend disproportionately on household assets on the grounds that doing so could deprive the guardian’s charge of needed income in the future.
In some cases, a personal representative must be appointed by a court. This can happen when someone dies without a will or when appointed personal representatives are unavailable. The court often appoints an experienced attorney or firm that offers personal representation, and these named representatives are held to the same standards as those named in wills or other documents.
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