Can I be an “Executor” and Beneficiary of a Will?

In Arizona, a personal representative (known in many states as an “Executor”) is the person or entity appointed by the Court to administer the estate and assets of someone who has died. In other words, the personal representative has the responsibility to ensure that the deceased’s affairs are taken care of after death in accordance with their last will and testament or with state law if they died without a will.

Can the personal representative of a will also be a beneficiary? Yes, it’s quite common for the personal representative to also be the beneficiary. Oftentimes, that personal representative/beneficiary is a surviving spouse or immediate family member.

What is a Personal representative, Beneficiary, and Interested Person?

When overseeing an estate after someone has died, it’s helpful to understand the differences between the following terms:

• Personal Representative

The personal representative of an estate is the person who ensures that the deceased’s wishes are followed. It’s often a time-consuming and emotionally draining role to fulfill the duties of a personal representative, as it requires a tremendous amount of responsibility. The role of the personal representative can depend on the size of the estate, the types of assets involved, and the complexity of the estate. A personal representatives’ duties can include:

• • Locating all assets of the deceased
  • Locating anyone named in the Will
  • Opening a bank account for the estate
  • Paying off the deceased’s debts using estate assets
  • Paying all estate bills (mortgage/insurance/etc.) using estate assets
  • Protecting and distributing assets to beneficiaries
  • Hiring necessary professionals (attorneys, accountants, financial advisors, etc.)
  • Following applicable probate laws, where necessary

If a personal representative doesn’t fulfill their job properly and in accordance with the laws, they can be held liable. If you’ve been named as a personal representative, having a qualified probate attorney will ensure you fulfill your duties in accordance with Arizona law.

• Beneficiary

A beneficiary is a person who receives a benefit (typically a financial benefit) through a trust, will, or other beneficiary designation (EX: life insurance policy) after another person has died. Unlike being appointed as a personal representative, the beneficiary doesn’t have any roles or duties to fulfill.

A beneficiary might receive any of the following:

• • Personal belongings
  • Real estate
  • Proceeds held at financial institutions (EX: Banks)
  • Pension or Retirement accounts
  • Insurance or annuity accounts
• Interested Person

An interested person is someone who is financially impacted by a person’s death. This can be a personal representative, beneficiary, family member (spouse, children, etc.), creditor or charity organization.

Should I act as both a Personal Representative and Beneficiary?

There can be several advantages to this scenario. For example, the beneficiary may be able to shorten the time needed to close the estate and may be more familiar with the deceased’s assets. A beneficiary acting as the personal representative may also be more motivated to distribute inheritances and manage any family disagreements regarding the estate.

However, this scenario could also lead to conflicts of interest if the distribution of the estate isn’t being managed according to the legal documents or if there is a challenge to the appointment of the personal representative.

Also, if you’re not comfortable acting as the personal representative, you have the right to decline this role. If this happens, the court will either appoint the backup personal representative listed in the will, consider petitions from interested parties who wish to be appointed, or appoint a neutral third-party administrator.

It’s advisable to consult with an experienced probate and estate planning attorney throughout this process. An attorney will be able to explain the legal rules, while also assisting with any court appearances or filings.

Contact Us

If you’ve been named as a personal representative and beneficiary, Brown & Hobkirk, PLLC can help guide you through the complicated process and ensure you follow all necessary rules and laws while fulfilling your duties. We can help you with executing your responsibilities as a personal representative and with petitioning the court to be appointed.

If you’re concerned about the actions of a personal representative and beneficiary, we can assist you with contesting the appointment, or the actions, of the personal representative.

Contact us today to schedule a free consultation at one of our conveniently located offices.