What Is the Role of a Personal Representative in Estate Planning?

If a loved one in Arizona asks you to close out their estate after their death, they are requesting that you serve as their personal representative (executor). Unless you’ve done it before, you’re likely asking yourself, “What is the role of a personal representative?” It’s a big responsibility. Before agreeing to the job, it’s wise to consult an experienced estate planning attorney so you understand your legal obligations.

Responsibilities of a Personal Representative in Arizona

In Arizona, a personal representative manages and settles a person’s estate after they pass away. Their duties include:

• Locating the will – The personal representative of an estate must find and file the will with the appropriate probate court.
• Notifying heirs and creditors – They must inform the deceased’s beneficiaries and publish public notices to tell potential creditors of the deceased’s passing.
• Inventorying assets – The personal representative must gather, assess, and protect all the estate’s property for proper distribution.
• Paying debts and taxes – They settle the deceased’s outstanding bills and file the necessary tax returns.
• Distributing assets – After paying the deceased’s debts, the personal representative distributes the estate’s remaining property according to the individual’s will or state law.
• Closing the estate – Finally, the personal representative files the final paperwork with the court to formally close the deceased’s estate.

Fiduciary Duties of a Personal Representative

A fiduciary has a legal duty to act in another person’s best interests. Personal representatives are considered fiduciaries in Arizona, which means they must manage the deceased’s estate with integrity.

Their duties include:

• Putting the estate’s interests first – Personal representatives must avoid conflicts of interest and cannot use the estate’s assets for their personal gain.
• Managing assets responsibly – The law expects personal representatives to carefully protect, invest, or sell the estate’s assets.
• Keeping accurate records – A personal representative must maintain detailed records of the estate’s income, expenses, and distributions to share with the court or heirs when required.
• Following the will and the law – Finally, personal representatives must carry out the terms of the deceased’s will and follow Arizona probate law until they resolve all matters related to the estate.

Challenges a Personal Representative May Face

Personal representatives may face many challenges throughout the process of settling an estate and distributing its assets, such as:

• Locating and securing all the estate’s assets
• Handling unpaid debts or disputed claims from creditors
• Dealing with missing or unclear will instructions
• Resolving conflicts among heirs or beneficiaries
• Managing real estate or business interests
• Meeting court deadlines and legal requirements

Does a Personal Representative Get Compensation?

Arizona law allows personal representatives to receive reasonable compensation for their work managing an estate. There’s no fixed amount set by law, so what counts as reasonable varies depending on the case.

In most situations, the probate judge overseeing the estate will review the circumstances and decide what compensation, if any, the personal representative should receive. If the deceased’s will mentions specific payment terms, those provisions may also factor in the court’s decision.

How an AZ Estate Planning Attorney Can Help

A personal representative’s duties are substantial, and without legal guidance, even a small misstep can have serious legal consequences. The Arizona estate planning lawyers at Brown & Hobkirk, PLLC can guide you through every step of the probate process. We’ll help you interpret the will, meet court deadlines, manage the estate’s assets, and avoid common mistakes. With our support, you can confidently carry out your duties and protect yourself from unnecessary legal risks. Call now or complete our contact form for a free consultation.