Choose the Personal Representative for Your Michigan Estate Carefully

May 13, 2011 (Press-News.org) One of the most important persons in your life takes his or her most prominent role after your death. The personal representative of your estate will settle your affairs for you after you are gone. He or she -- or it, if you choose a bank or trust company to act for you -- will have the responsibility to see that the wishes you express in your will are carried out for the benefit of your beneficiaries.

In simple terms, your will is the legal document that gives you the opportunity to direct how the most important parts of your life will be wrapped up upon your demise. The personal representative you choose will carry out those directions.

Once the court finds your will to be valid, Michigan law directs the court to give priority to the person you nominated in your will when it appoints your personal representative, provided that person is legally qualified to act in that capacity.

Duties of a Michigan Personal Representative

The personal representative (some states use the terms executor or administrator) of your estate steps up to carry out the wishes recorded in your will about what you want to happen to your money, investments, personal property, business interests and real estate. For example, you may want your property to go to specific people, to certain charities or into trust for someone's benefit. Broadly, the personal representative gathers, inventories and evaluates your assets; pays your debts and taxes and those of the estate; manages and protects your property; and sees that it is transferred to your intended recipients.

Sometimes the duty of a personal representative includes bringing or defending a lawsuit on behalf of the estate or in the interests of the heirs and beneficiaries.

If you leave a sizable estate, the personal representative's duties will be more complex simply because there may be investments to manage, ongoing business concerns to oversee or trusts to establish and administer. Whether your estate is relatively average in value and property, or you leave a large and complicated estate, though, your personal representative should consult with experienced attorneys, accountants and other professionals to receive the necessary advice and services your personal representative needs to administer the estate.

Your personal representative has a fiduciary duty in all estate dealings. This means that he or she must make decisions and take actions fairly, reasonably and in good faith, keeping in mind the best interests of your beneficiaries. A personal representative must act as a prudent person or prudent investor would in making financial and other important decisions that affect the estate and heirs. If an estate is neglected or mismanaged, or if the personal representative acts in his or her own interests instead of those of the heirs, the personal representative may be personally liable for losses that result.

Important Considerations

So how do you choose the person in whom you will put your trust to see that your assets reach the people you love and want to continue to support after your death? Here are some factors to think about when naming your personal representative:
- Whether your estate would be better managed by a personal representative who is a relative or friend, or by a professional, or bank or trust company acting in this capacity
- Whether the person has the temperament to interact well with your family and heirs considering the personality traits of all
- Whether it would be better to name a close relative or friend who is already familiar with your family situation and property, or rather someone with a healthy distance from your family
- Whether you have evidence that the person is honest, hard working and bright
- Whether the person has the time, health and stamina to take on this role, which can take months or sometimes years to complete
- Whether the person has any special skills or knowledge required to manage your particular types of assets
- Whether the person has any conflicts of interest with any heir or investment
- Whether the person is likely to make the kinds of decisions you would want them to make

Be sure to get the permission of the person you name as your personal representative. You want to be sure that he or she would accept the appointment and be comfortable in the role. Talk to your close family members about who you choose and why so your relatives understand your reasoning and don't take offense at not being named.

The Role of an Estate Planning Attorney

Lean on a skilled estate planning lawyer to draft your will and any other recommended estate planning documents, and for advice about naming your personal representative. If you are appointed to act as personal representative for someone else's estate, a knowledgeable attorney can help you carry out your legal duties and responsibilities.

Article provided by Willis & Willis PLC
Visit us at http://www.michiganestatelawyers.com/