Probate proceedings help to guide estate administration. The courts monitor the conduct of a personal representative. They can help provide guidance in scenarios where the deceased party did not leave an estate plan. They can also help resolve conflicts about the validity of an estate plan or the conduct of the personal representative.
Sometimes, the individual who accepts responsibility for an estate makes mistakes that cause major headaches. In some cases, their mistakes can lead to direct financial liability. Other times, they might be at risk of removal from their position.
What are common probate mistakes that personal representatives need to actively avoid?
Failing to notify and pay creditors
The personal representative is not directly responsible for the decedent’s debts. Even if the estate is insolvent and does not have enough resources to pay all debts, the representative does not have to worry about personal responsibility for those obligations. However, if they don’t properly fulfill their probate responsibilities, they might be liable then.
Probate rules generally require direct communication with known creditors and the publication of notice for unknown creditors. The personal representative needs to use estate resources to pay creditors before they distribute assets to beneficiaries. If they fail to take the right steps, they may ultimately be personally liable for the value of the assets they improperly distributed.
Letting personal feelings dictate conduct
There are generally two sources of guidance during probate proceedings. The first is any valid estate planning documents drafted by the deceased. The second is state law. Personal representatives should do their best to follow the instructions of the decedent and fulfill all statutory probate requirements. Unfortunately, sometimes they let their personal relationships with beneficiaries influence their conduct.
Some representatives refuse to distribute an inheritance the way that they should because they have a bad relationship with the beneficiary. Others give preferential treatment to someone with whom they have a strong bond. Allowing personal relationships to influence conduct during estate administration can lead to legal challenges against a representative and their removal from their role.
Procrastinating about important steps
It is quite common for people to find probate matters overwhelming. They may tell themselves that they’ll look for the will tomorrow, for example. Delaying important steps like initiating probate proceedings or securing estate resources can lead to litigation. Frustrated family members and beneficiaries can seek the removal of a personal representative who does not fulfill their obligations competently and in a timely manner.
Learning from common mistakes made by others can help personal representatives minimize their own liability during probate. Those who have the right support during probate proceedings are less likely to make mistakes that endanger their role and/or make their personal resources vulnerable.
