Loune-Djenia Askew, Esq.
Sep 11, 2024
Selecting a Personal Representative for your will is one of the most important decisions you'll make in your estate planning. However, choosing the wrong person for this role could have serious financial consequences.
Selecting a Personal Representative for your will is one of the most important decisions you'll make in your estate planning. However, choosing the wrong person for this role could have serious financial consequences.
The Role of a Personal Representative
A Personal Representative, also known as an executor, has significant responsibilities. They must locate and manage assets, pay off any debts, file taxes, and distribute what’s left to the beneficiaries. If your Personal Representative is not up to the task, mistakes can happen—mistakes that might cost your estate millions.
Common Mistakes Made by Inexperienced Representatives
An inexperienced or unqualified Personal Representative might overlook critical tasks such as accurately valuing assets, failing to pay taxes on time, or mishandling the distribution of assets. For example, if they undervalue your estate, it could result in penalties or missed opportunities for tax savings. They might also face legal challenges from beneficiaries, leading to costly court battles that drain your estate.
The Risk of Delays and Increased Costs
Choosing a Personal Representative who is not familiar with estate administration can lead to delays in settling your estate. These delays might cause increased legal fees, prolonged court involvement, and frustration among beneficiaries. Additionally, mismanagement of assets during this period could result in losses, particularly if investments are not properly handled.
Selecting the Right Person
To avoid these pitfalls, select a Personal Representative who is trustworthy, organized, and ideally experienced in managing estates. This person doesn’t have to be a family member; it could be a professional, such as an estate planning attorney or a financial advisor, who has the expertise to handle complex financial and legal matters.
Choosing the wrong Personal Representative for your will can lead to costly mistakes, delays, and even legal disputes. These errors could significantly reduce the value of your estate, impacting the inheritance your loved ones receive. To protect your assets and make sure your wishes are carried out, take the time to carefully choose a qualified and reliable Personal Representative. Consulting with an experienced estate planning attorney can help you make the best choice for your situation, safeguarding your estate and your legacy.
For more information, contact our office at Askew & Associates, P.A. by calling 954-546-2699.
Disclaimer: this blog post is not intended to be legal advice. We highly recommend speaking to an attorney if you have any legal concerns.