Most people do not want the responsibility that comes with estate administration. Still, families may come to resent the perceived authority that a personal representative has or may question whether their actions were truly in the best interests of the estate’s beneficiaries.
In some cases, family members and other interested parties can petition the probate courts to remove and replace a personal representative. Removal attempts can diminish the value of the estate by generating probate court costs. Additionally, removal proceedings can cause familial tensions that lead to permanent damage to a person’s closest relationships.
Personal representatives generally need to keep thorough records to protect themselves and an estate.
What records are necessary?
The more documentation that a personal representative maintains, the better. They may want to keep copies of every letter they send to creditors or beneficiaries. Financial records, including copies of checks and receipts from creditors, can be helpful.
Proof of how a personal representative has managed estate resources and any distribution of those assets is generally beneficial. Even when people inherit physical property, it may be possible to create a record of the transfer of resources.
Handwritten receipts can detail exactly what assets a personal representative transferred to beneficiaries. Particularly when there could be conflict related to jewelry, antiques or assets that have emotional value to beneficiaries, having proof of the distribution of assets can be important for the protection of a personal representative.
Beneficiaries can sign a slip affirming that they received certain pieces of furniture and other physical property. If there are later questions about how the personal representative managed resources or who received certain assets, the records that the personal representative maintains can help them quickly account for resources with emotional or economic value.
Being able to provide documentation to concerned family members or beneficiaries is helpful and can prevent disputes from spiraling into litigation. Personal representatives can also use the documentation they maintain to prove that they have fulfilled their fiduciary duty should litigation occur.
Having guidance from the earliest stages of estate administration can help personal representatives protect themselves and effectively fulfill their responsibilities. Proper records can help defuse claims that a personal representative did not follow estate plan instructions or otherwise failed to fulfill their responsibility to an estate and its beneficiaries.