Serving as a personal representative—whether named as an executor in a will or appointed as an administrator by the court—is an important and often complex responsibility. From legal obligations to family dynamics, there are many ways the process can go off track. Here are some of the most common mistakes personal representatives make when handling an estate:
1. Overlooking Fiduciary Duties
Personal representatives are legally required to act in the best interests of the estate and its beneficiaries. Mismanaging assets, showing favoritism, or making decisions based on personal interest can lead to legal and financial consequences.
2. Misinterpreting the Will or Failing to Follow State Law
Some representatives skip key steps, misunderstand the will, or don’t know how to proceed when there is no will at all. Each state has specific rules that must be followed. Not doing so can delay the process or lead to disputes.
3. Delaying Necessary Action
Settling an estate involves timelines—filing court documents, notifying creditors, and handling taxes. Waiting too long to begin or failing to meet deadlines can create complications and penalties.
4. Mishandling or Overlooking Assets
Personal representatives must locate, protect, and manage all assets, including real estate, personal property, bank accounts, and even digital assets. Failure to secure or properly value items can reduce the estate’s worth.
5. Paying Heirs Before Debts and Taxes
One of the most serious errors is distributing assets before resolving debts and taxes. If the estate can’t cover these obligations, the personal representative may be personally responsible for the shortfall.
6. Lack of Communication with Beneficiaries
Not keeping heirs informed can lead to mistrust and conflict. Regular updates—especially during long probate processes—can help reduce misunderstandings and tension.
7. Trying to Manage Everything Alone
Probate can involve legal, financial, and real estate complexities. Relying solely on personal knowledge without the support of professionals can cause delays, disputes, or costly errors.
8. Real Estate Mistakes
Real property often requires special handling during probate. Failing to maintain it, undervaluing it, or selling it without the proper authority can diminish the estate’s value or result in legal trouble.
Navigating probate is challenging, especially when real estate is involved. As a Certified Probate Real Estate Specialist, I help personal representatives handle property matters with care, professionalism, and compliance every step of the way.
Debbie Kula
ARHome Realty
📞 312-859-3038
📧 [email protected]