What is a Personal Representative?

When a property owner dies in Arkansas, a legal proceeding to settle the estate is required by state law. This proceeding, whether the person dies with or without a will, is called "administration," and it must take place in the Probate Division of the Circuit Court of the county where the deceased resided. If the person dies as an out-of-state resident, an administration proceeding must be started in the Arkansas county in which the person held property.

In the administration of an Estate, the Personal Representative is directly responsible for proper settlement of the Estate. If a person dies "testate" (with a Will), the Will nominates a Personal Representative to take charge of the Estate. If a person dies intestate (without a Will), an interested party may petition the Court for the appointment of a Personal Representative, with such Petition nominating the person to be so appointed.

Who may serve as a Personal Representative?

Generally anyone may serve who is over 21, of sound mind and bondable. Banks that have trust powers or trust companies are also eligible to serve.

Why is there an Administration Hearing?

The purposes of administering the estate are to:
1) Collect property and assets.
2) Protect the property of the estate.
3) Pay debts and taxes.
4) Determine who is entitled to share in the estate.
5) Distribute the estate to the proper parties.

TITLE

Legal title to all personal property goes to you as Personal Representative. You also have custody and control over the real property, but not the legal title to it. However, you must obtain court authority before leasing, mortgaging or selling real or personal property, unless you are specifically authorized by the Will to do so.

AUTHORITY

Your authority to act is evidenced by court-signed-and-sealed Letters Testamentary or Letters of Administration. The court will issue additional certified copies on request, and each time you transact estate business, you should take a copy with you.

DUTIES

As Personal Representative you are the impartial representative of all parties with an interest in the estate, including persons with claims; and you should be completely fair and open in dealing with them. Great responsibility is placed on your shoulders. You must take possession of all the property of the estate and distribute it properly. Actually, you are an officer of the court.

DUTIES

As Personal Representative you are the impartial representative of all parties with an interest in the estate, including persons with claims; and you should be completely fair and open in dealing with them. Great responsibility is placed on your shoulders. You must take possession of all the property of the estate and distribute it properly. Actually, you are an officer of the court.

The following is a summary of your principal duties:
1) Take possession of and protect the real and personal property, excepting the homestead and real estate specifically given by the will.
2) Keep real estate and personal property properly insured.
3) Receive the rents and payments due and collect interest, dividends and other income.
4) Make proper demand for and collect all the debts, claims and notes due.
5) Assist in determining the names, ages, residences and degree of relationship of all possible heirs.
6) Litigate or settle any pending lawsuits in which the deceased had an interest.
7) Keep the property of the estate in good repair.
8) Keep surplus funds invested.
9) Obey and perform all the orders of the court.
10) Determine and pay federal and state estate taxes and federal and state income taxes.
11) Pay the valid claims of creditors and, if necessary, sell the estate property to do so. 12) Distribute the remaining assets to the proper heirs.

If you fail to perform your duties, you can be held liable for the loss you cause the estate, and the court can order your removal. Also, the court can require the party furnishing your bond to repay the estate. There are severe consequences for an irresponsible Personal Representative.

RESIGNATIONS

If you find that you do not have the time to serve or just do not want to assume the responsibility of serving as Personal Representative, you may resign with the court's approval. The court will then appoint a successor to serve in your place. You can indicate whom you would prefer to be your successor.

Article Source: http://freelegalinformation.info

Published by: Arkansas Legal Services