Can A Beneficiary Serve As A Personal Representative?

When you are drafting your estate plan, there are many roles you must consider. The personal representative you choose is an important one, as this is the individual who will be responsible for administering your estate after you pass away. You also name beneficiaries, who are the individuals or other entities, such as charities, that will inherit your estate after you pass away. There are many laws you must consider when drafting your estate plan and it is not uncommon for people to wonder if a beneficiary can also act as your personal representative.

Although you can choose a beneficiary to serve as your personal representative, this can cause disputes to arise. It is also important to consider whether the beneficiary you are considering can handle the many fiduciary responsibilities involved. Our St. Petersburg estate planning attorney explains in greater detail below.

What are the Duties of a Personal Representative? 

Most of the personal representative’s duties are during probate, the court-supervised process of administering someone’s estate after they pass away. These duties include:

• Deposit the will with the probate court and initiate the probate process
• Locate, take possession of, and safeguard all property of the deceased
• Create an inventory of the deceased’s assets
• Value the assets of the deceased
• Inform beneficiaries and creditors of the death and their rights
• Pay all expenses of the estate, such as past debts, funeral costs, and taxes
• Represent the estate during legal matters such as selling property
• Distribute remaining assets to the beneficiaries according to the terms of the will or the intestacy laws in Florida
• Prepare a final accounting that details all expenses, income, and distribution and file it with the court
• Ask the court to close probate

Can Beneficiaries Be Personal Representatives? 

Being named as a beneficiary does not exclude someone from also serving as personal representative. Still, there are certain requirements personal representatives must meet. These are as follows:

• Be at least 18 years old
• Reside in Florida, unless the personal representative is a close relative of the decedent
• Have the mental and physical capacity to handle the estate’s assets and other important matters
• Not convicted of a felony

As long as someone meets the above requirements, they can act as a personal representative.

Potential Issues that Can Arise 

While beneficiaries can legally serve as personal representatives, this can cause certain issues to arise. These are as follows:

• Other heirs may believe the personal representative is prioritizing their own best interests over others
• Decisions regarding which debts are valid and how to handle the expenses of the estate can result in disputes
• A perceived conflict of interest
• As a beneficiary very close to the deceased, the personal representative may be too engulfed in grief to perform their duties

Our Estate Planning Attorneys in St. Petersburg Provide Sound Legal Advice 

There are many aspects to planning your estate, including who to choose as your personal representative. At Legacy Protection Lawyers, LLP, our St. Petersburg estate planning attorneys can provide sound advice that will help prevent disputes from arising and to ensure that your loved ones are protected. Call us now at 727-471-5868 or contact us online to schedule a consultation and to learn more about how we can help.

Source:

leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0700-0799/0733/Sections/0733.602.html