When someone dies with a will, the document typically names an executor. If no valid will exists, the court will appoint an administrator. In either case, these “personal representatives” are responsible for managing the deceased person’s estate and handling probate in North Carolina.
You may have questions if you’ve been named a personal representative, either in a will or by a court. In this post, an experienced North Carolina probate attorney discusses what you need to know about being a personal representative, including legal duties, frequently asked questions, and common pitfalls to avoid.
Duties of Personal Representatives
As a personal representative, you are responsible for managing and distributing someone’s estate after they pass away. Specifically, probate in North Carolina requires the following:
- Will validation: You must locate the decedent’s will and file a petition with the court.
- Asset inventory and valuation: You must gather information about the decedent’s property, create an inventory of assets, and take steps to protect those assets.
- Debt settlement and creditor claims: You must notify creditors (known and unknown), investigate claims against the estate, and pay all debts. These include any medical bills, funeral expenses, and state and federal taxes.
- Beneficiary distributions: You must identify all heirs and properly distribute assets to the correct beneficiaries.
- Estate accounting: You must handle all administrative expenses, keep records and receipts, and properly close the estate after your personal representative duties are complete.
Five Common Questions About Personal Representatives
North Carolina probate attorneys often field the following questions from individuals named as personal representatives:
1. Executor vs. Administrator: Are They the Same?
Executors and administrators have the same duties. The difference is how they received their position. Whereas executors are named in the will, administrators are named by the court. Both are considered personal representatives.
2. Do I Have To Accept the Position If I Am Named?
Some people consider being the executor of an estate an honor, while others see it as an inconvenience. In either case, it is a big job with major responsibility. You do not have to accept the position. You may also resign after accepting if you decide it is too much to handle.
3. Who Cannot Serve As Personal Representatives?
North Carolina bars certain people from acting as personal representatives, including the following:
- Minors under the age of 18
- People who have been declared incompetent
- Illiterate individuals
- Anyone convicted of a felony (unless their citizenship rights have been restored)
4. Do I Have To Live in North Carolina?
You do not have to live in the same state as the decedent. However, probate in North Carolina requires a resident process agent. That means you need a local resident to assist you if you live out of state.
5. Are Personal Representatives Usually Paid?
Although no law requires payment, many personal representatives receive compensation for their duties. In North Carolina, personal representatives may claim up to 5% of the estate value unless the will states otherwise.
Common Pitfalls for Personal Representatives
Personal representatives don’t typically have extensive estate administration experience. Consequently, they are susceptible to the following pitfalls:
- Overreporting assets: A common mistake involves overestimating the value of property and including unnecessary assets on court inventory forms. This could incorrectly inflate the estate value, leading to higher probate fees.
- Paying invalid debts: Sometimes scammers send false invoices after a death, hoping to trick personal representatives into paying them. Even valid debts can sometimes be negotiated, helping you pay a lower amount.
- Taking too long: Personal representatives must complete tasks within certain time frames. If you make mistakes or waste time, you may prolong your duties and delay estate closure.
- Improperly distributing funds: You are responsible for making distributions to the right people, at the right time, and in the right amount. Failing to do so could open you up to personal liability.
- Making costly mistakes: Personal representatives have a fiduciary duty to act in the interests of the decedent’s estate. If you do something wrong, you may have to pay for it out of your own pocket.
Need Help With Probate in North Carolina? Contact Us Today
Losing a loved one is upsetting, confusing, and sometimes overwhelming. If you’re also their estate’s personal representative, it might be more than you can handle alone. Thankfully, you don’t have to. The skilled probate legal team at David E. Anderson, PLLC, can help. Contact us today to learn how we can guide you through the probate process.