First Steps If You're Nominated Personal Representative of an Estate

Here’s a typical situation: you have been nominated as personal representative, also known as the executor, in your parent’s will, and that parent has passed away. You’re not sure what you are supposed to do. You think you mostly understand the will, but relatives keep calling and asking for updates and giving their opinions on the matter, and before long, you doubt whether you actually do understand it. 

To make matters worse, you don’t know the extent of the property your parent owned or where to find that information, and oh — you know this all has something to do with probate court and the “probate estate,” but you have never been to probate court. The most the court clerk could do for you when you drove down to the court to ask was to hand you an intimidating stack of forms to file.

At this point, you should consult with a probate attorney. But if you would like to understand more about the process and your new role before you do, this article can help.

What is a personal representative?

“Personal representative” is Michigan’s terminology for the executor of a person’s probate estate. The personal representative of an estate has the job of gathering the assets, paying any validly presented creditor claims, and distributing the remaining property to the estate’s beneficiaries in accordance with the decedent’s will and Michigan law.

The personal representative owes the fiduciary duties of care and loyalty to the estate and its beneficiaries, and they are also subject to many other duties that are imposed by Michigan law. The violation of these duties could result in the personal representative’s exposure to personal liability, so it is important to consult with an attorney to better understand which actions are permissible and which are not.

Getting Appointed as Personal Representative

Many people believe that since they are nominated as personal representative in a person’s will, they automatically become the personal representative of the estate after that person passes away. This is a common misunderstanding. The will can only nominate somebody as personal representative, but the probate court must officially appoint that person before they gain all of the powers, rights, and responsibilities of the personal representative. 

In order to become appointed, you must file an application or petition to open the probate estate and appoint a personal representative with the probate court. The filings generally include the application or petition itself, forms containing personal protected identifying information, an acceptance of appointment, written testimony to identify the decedent’s heirs, a proposed order or register’s statement, and proposed letters of authority. Additional documents can be necessary on a case-by-case basis.

If everything is completed and filed properly, the court will issue a document called Letters of Authority. This document is the official, court-sealed proof that you have been appointed personal representative of the estate, and it allows you to begin managing the property in the decedent’s estate.

First Steps as Personal Representative

Once you have your Letters of Authority, the work has just begun. Now your job is to gather all of the estate’s assets together, notify all of the estate’s creditors that the estate has been opened, pay any validly presented creditor claims, and distribute the remaining estate property in accordance with the terms of the will. There are a few things that you should do immediately to begin this process. First, you should apply for an Employer Identification Number (EIN) for the estate with the IRS. This can be done relatively quickly online, and the EIN allows you to file taxes for the estate and open bank accounts for the estate.

With the EIN and your Letters of Authority in hand, you should open an estate checking account at the bank of your choice. The goal is to move all of the money from the decedent’s other financial accounts into this newly-opened estate checking account so that everything is in one place. Proceeds of any property that you are directed to sell under the terms of the will should also be deposited here. All property in the estate should be listed on an inventory that is provided to interested parties and the court.

While you are working on the estate account, you should also work with the United States Postal Service to forward the decedent’s mail to your address. This will assist you in locating different financial accounts and creditors of the decedent because institutions typically send financial statements and invoices via mail.

For the final piece of this initial phase, you must notify all creditors that the decedent has passed away and the decedent’s estate has been opened. All known creditors must be notified directly, and all unknown creditors must be notified via publication in a newspaper in the county where the decedent lived when they passed away.

It is important to briefly note that within the first few months of the estate being open, there are multiple legal notices and filings that you must serve on interested parties to the case. Failure to do so can result in adverse consequences, so be very attentive and intentional during the first few months of estate administration. 

Moving Forward

Once you have handled the above tasks, administration is well under way. After five months, as long as all of the creditor claims have been satisfied and the beneficiaries have been paid appropriately, the estate is eligible to close. You will have to file some final paperwork with the court that includes a final accounting, which demonstrates that all assets have been paid out of the estate in accordance with the terms of the will and Michigan law.

The probate process can be deceptively challenging to understand. It involves working with the court, managing property and financial accounts, adhering to legal procedures, minding several different timelines for notices and filings, and much, much more. This article, as detailed as it is, only defines one type of probate procedure among many, and each different type of probate procedure has different rules, requirements, and deadlines.

Experienced probate attorneys can alleviate pressure and simplify the process, but more importantly, they can protect you from personal liability by advising you and ensuring that all legal requirements and standards are being observed. If you are nominated in a will and seeking advice on what to do next, Kimball & Wells has got you covered. Our firm specializes in probate court practice, and we take great pride in creating meaningful, supportive relationships with our clients. We are located in Grand Rapids, and we offer free consultations to discuss and advise on your issue. To get started, call us at (616) 317-8489, or click the “Contact Us” link on our website.

Adam J. Kimball
Kimball & Wells, PLLC
Adam@kimballwells.com
(616) 317-8489