ISSUE #22
Your Personal Representative

Your personal representative (also called an executor in some states) is the person you name to manage your final affairs after you have passed away. This is an important job, so your decision about your personal representative should not be taken lightly. Here are some important points to keep in mind:

1. Responsibilities -- The personal representative named in your will is responsible for administering your estate after you die. He or she will be authorized to pay your bills and taxes, take an inventory of your assets and then make distributions to your heirs according to your will. You are depending on your personal representative to faithfully carry out your wishes after you are no longer here.

2. Who Can Serve? -- You have several options for choosing your personal representative. You may select a family member or a close friend, even if they do not have any special legal or financial knowledge. You may name an attorney who is skilled in handling estates, or you may name a corporate fiduciary, such as a bank or a trust company. There are advantages and disadvantages to each option, so you need to ponder your decision carefully. Your attorney can help you select the most appropriate personal representative for your situation.

3. Family Member -- The advantage of naming a relative is that person’s familiarity with your values and your family. A family member will normally waive the customary fees, which will help reduce the cost of settling your estate. Although it is a good idea to select a family member with some understanding of financial matters, this is not essential, as lawyers and accountants can be hired to assist your personal representative. State law may prevent some out-of-state family members from serving as your personal representative. Your attorney can advise you on this.

4. Your Spouse -- Just as many married people plan on leaving everything to the surviving spouse, many also name their spouse as their personal representative. This is often the best choice, although you should also name a successor personal representative, just in case your spouse does not survive you or is unable to serve. As you get older, it may make sense to change your personal representative to a younger family member, usually an adult child.

5. Other Considerations -- Discuss your plans with the person you have selected ahead of time. This is a demanding job that some people may decline. Verify that this person is willing to serve and has a realistic understanding of the responsibilities. Trustworthiness and dependability are also important factors. Can your designated personal representative be counted on to manage your estate responsibly and fairly? If there is any real chance that your will may be contested, or if there may be serious disagreements among your heirs, you should consider naming a professional personal representative.

6. Banks and Trust Companies -- If you are a trust customer of a bank, the bank’s trust department may serve as your personal representative. While trust departments have skilled staff members who routinely handle all aspects of estate administration, they generally provide this service only for existing customers who have a sizable trust under management. Working with a bank trust department ensures that your personal representative will be held to high fiduciary standards. Make sure you ask about the fees, which can be substantial.

7. Attorney -- You may also name your attorney as your personal representative. Probate attorneys are experts in settling estates, and they often handle the probate process, even when a family member is serving as the personal representative. Attorneys bring professionalism and impartiality to the job, and they expect to be reasonably compensated for their work. The attorney’s fee, which may be an hourly fee or a percentage of the value of your estate, may be regulated by state law. As with all legal work, ask your attorney in advance for a full disclosure of his or her fees.

This publication has been prepared as an educational resource to help the reader identify areas of potential concern. The publisher is not engaged in rendering legal, accounting or other professional services. The information contained in this publication should not be acted upon without first obtaining the advice of a professional adviser. 2004 © Florida Philanthropic Advisors, LLC. Material may not be used without permission.

You may wish to access NEW information this month at: www.ashland.edu/estate and “click” on “Planned Giving” in the left hand column.

Our planned giving director, Paul Ditlevson, can be of tremendous service in helping you integrate your giving goals with your overall estate plan. He can also help you prepare to visit your attorney. You can reach Mr. Ditlevson by calling 419-289-5090 or by email to pditlevs@ashland.edu or regular mail at 401 College Avenue, Ashland, OH 44805.