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Estate planning can be stressful for many people. It is often an exercise in managing relationships as much as it is about managing assets. Who to name as the personal representative (the PR)of your estate (formerly known as an executor or executrix) can be a difficult decision.
The responsibilities of a personal representative
The PR of an estate is responsible for carrying out the deceased's wishes as expressed in their will and distributing the estate as soon as possible. The core tasks of a PR include:
- Identifying the estate's assets and liabilities
- Administering and managing the estate
- Satisfying the debts and obligations of the estate
- Distributing and accounting for the administration of the estate
Regardless of the size of the estate, it can be a lot of work and the PR will be required to make a lot of decisions. Those decisions, made in the best interests of the beneficiaries, will not always be obvious and may even be controversial or unpopular. In the face of an ambiguous will, the PR may be asked to decide the fate of a beloved family vacation property or how to divvy up sentimental family heirlooms: those decisions can cause waves.
Why name multiple personal representatives?
There are many reasons that someone may decide to name more than one person to act as a PR.
Managing a large estate can be too much for one person, especially if it includes complex assets like a business. The PR may need to help run or wind down the business, which is time-consuming on top of other PR duties and their own commitments. The workload alone can make having just one PR impractical.
In complex estates, one person may not be well-placed to handle everything. Factors like the PR's expertise, location, and knowledge of the assets matter. For example, a PR familiar with the deceased's business might be ideal, but if they live elsewhere, a second PR could better manage keepsakes, the home, and funeral arrangements.
Naming multiple PRs can also be motivated by a desire to manage family dynamics. Parents may fear hurting their children's feelings by choosing just one as PR, or they may want to avoid placing all responsibility on one person. There is sometimes a sense that the PR has been favored by the deceased. With multiple PRs, decisions are shared, preventing any one individual from making decisions alone, which may ease tensions and ensure fair involvement of all beneficiaries.
Proceed with caution
Having more than one PR can be helpful, but it may cause problems if they disagree. A loved one's passing can change family dynamics, and even people who have always gotten along may suddenly clash. If those family members are the two PRs of the estate, it could lead to conflict and expensive legal battles.
Conflicts can often be avoided with a clear will. If there are multiple PRs, expect disagreements and include ways to resolve them. For example, appointing an odd number of PRs and stating that the majority decision prevails ensures certainty. You can also include guidelines for PRs, such as prioritizing keeping assets in the family or getting the highest value for estate assets. Consider including a simple dispute-resolution method, like drawing straws or flipping a coin, in the event of a conflict. Any of these could help to avoid costly litigation if your PRs find themselves at odds.
Conclusion
If you are a PR at odds with the other estate PRs, consult a lawyer and the will. Estate litigation counsel can provide advice as to your duties and obligations under the will, which may ultimately resolve the dispute.
Originally published by Digital Journal
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
