Serving as a personal representative for an Arizona estate is quite the responsibility.
A personal representative is someone appointed to manage the estate administration process. They are appointed by being named as a personal representative in a will or appointed by a court if someone dies without a will.
What does a personal representative do?
Some examples of the duties of a personal representative include identifying and valuing estate assets, paying outstanding estate debts and distributing assets to the appropriate heirs.
A personal representative is also responsible for notifying creditors and heirs of the estate, submitting a final tax return if necessary and filing certain documents with the court. A good personal representative is responsible and has strong communication and organization skills.
Since estate administration can be complicated and challenging, sometimes it is hard to determine if the personal representative is acting in good faith.
Here are some red flags that may be signs of misconduct by a personal representative.
Lack of communication
Frequent and open communication from a personal representative is necessary to keep the estate administration process running smoothly. While not hearing from a personal representative might not be a sign of something sinister, it can leave beneficiaries feeling that something is being hidden from them.
If you do not hear from a personal representative as often as you would like, this could be a sign of misconduct.
Alternatively, a personal representative who rushes through the process could also be a red flag. Perhaps a personal representative communicates with you but does not answer your specific questions, provide details you request or is hasty in the completion of their duties. This is another sign something may be amiss.
Conflicts of interest
A personal representative cannot have any conflicts of interest. A common example of a conflict of interest is a personal representative who is also a beneficiary set to receive a large portion of the estate.
A personal representative is supposed to fairly distribute assets and act neutral. A situation involving a personal representative with a personal interest in the estate is likely to be viewed as suspect.
Unequal distribution of assets
When a personal representative, or someone close to them, receives a more than equal share of the estate’s assets, a review of the will’s terms or relevant Arizona probate law may be necessary.
You should receive an explanation for each estate expense or debt paid. A personal representative receives a modest fee for their role. Unexplained expenses or debts could be a sign the personal representative is collecting extra fees for themselves.
If you believe a personal representative committing misconduct, you can petition the court to have the representative removed and have another one appointed. However, you must have more than suspicions of misconduct for a successful removal. You must have evidence the personal representative committed the misconduct.
When you or your loved one take the time to create an estate plan, you expect the personal representative you select to do their job properly and ethically. Knowing the signs of potential misconduct can help ensure a fair resolution for everyone involved in the estate administration process.