The Role of the Personal Representative. When someone is appointed as a Personal Representative in Florida, it is not merely an honorary title, but a position carrying significant legal responsibility. Armed with the “Letters of Administration” issued by the court, this person becomes the “face” of the estate, authorized to act on behalf of the deceased. But what exactly does a representative do, and what pitfalls must they avoid?
Who Can Serve as a Personal Representative in Florida?
The Role of the Personal Representative. According to Florida law, a Personal Representative must be at least 18 years old and cannot have a felony conviction. A crucial rule to note: if someone is not a Florida resident, they can only serve as a representative if they are a close relative of the deceased (such as a spouse, child, parent, or sibling). The courts in Broward County strictly verify these criteria before making an appointment.
Key Tasks and Obligations
The representative’s duty is to “collect, preserve, and distribute” the estate. In practice, this involves the following:
- Securing Assets: The deceased’s assets must be protected. This may involve changing locks on real estate, paying insurance premiums, or moving personal property to a secure location.
- Handling Creditors: The representative is obligated to publish a formal notice in a local newspaper and directly notify known creditors (such as banks or hospitals).
- Tax Responsibilities: They are responsible for the deceased’s final income tax return and managing the estate’s tax affairs (including obtaining an EIN if necessary).
- Final Accounting: At the end of the process, a detailed report must be prepared for the heirs and the court, accounting for every cent handled during the proceedings.
The Biggest Pitfall: Fiduciary Duty
The Role of the Personal Representative.The Personal Representative has what is known as a fiduciary duty. This means they must always prioritize the interests of the heirs and creditors above their own.
Strictly prohibited actions include:
- Unauthorized Withdrawals: Many believe that as representatives, they are free to use the deceased’s bank cards. This can be considered a serious criminal offense.
- Selling Assets Below Market Value: If a representative sells real estate to a friend below market price, the heirs may sue for the lost revenue.
- Commingling Funds: Estate money should never be kept in a personal bank account. A separate estate bank account must be opened for this purpose.
Is the Personal Representative Paid?
The Role of the Personal Representative. Yes, Florida law recognizes the work performed by the representative. Generally, they are entitled to a commission based on a percentage of the estate’s value (often 3%), though they may waive this fee, for instance, if they are a family member.
Serving as a Personal Representative is a demanding task, especially when the heirs live abroad. For this reason, most Florida courts require the involvement of a professional probate attorney to guide the representative and ensure they do not make errors for which they could be held personally liable.
