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Choosing a Trustee vs. Personal Representative

Tuesday, October 4, 2022 2:47 PM

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Estate administration can be an overwhelming task for many seniors and their families. One of the many challenges is selecting someone responsible for the disposition of the estate. A trustee/personal representative is responsible for the distribution of assets. A relative, a close friend, or a professional advisor, can serve in this capacity.

Let’s explore choosing a trustee versus a personal representative to handle your estate. Before you can decide, you need a clear understanding of each title.

Trustee 

A trustee has several responsibilities that are typically handled after your death. These responsibilities include distributing assets, making tax decisions, administering your estate, ensuring all life insurance and retirement benefits are received, filing, paying taxes, and paying estate debts.

Personal Representative 

The court appoints the personal representative of a person’s estate when the individual dies without a will (known as dying intestate). This person oversees the administration when the benefactors’ assets are processed in the court’s probate division. One duty of a personal representative is to give creditors notice of a person’s passing. This important notice is crucial because creditors have a designated time limit to file a claim against an estate to recoup their money.  After the time limit for creditors has expired the personal representative will begin the same process as previously stated above; ensuring all life insurance and retirement benefits are received, filing final tax return, paying taxes. Whatever is left is disbursed to the direct descendants/beneficiaries of the deceased.

People often consider naming an objective individual trustee or a personal representative. Potentially they would be more familiar with the local laws and other procedures for estate administration. Additionally, they do not have emotional bias.

Safe Harbor Eldercare Services successfully works with the client’s well-established team of advisors. Advisors have often known the client for sometimes twenty years or more, bringing precious historical value to the senior’s wishes and concerns.

Safe Harbor Eldercare Services, if appropriate, can provide our clients and families with the comfort and safety of fiduciary services. We partner with objective legal and financial/accounting expertise ensuring the person’s affairs are taken care of without the added drama that can, unfortunately, arise during times of transition or emergent health events.

No matter the complexity of the family or individual’s financial or health situation, Safe Harbor Eldercare Services can help. Contact us
today or call at (866) 742-7267.

Sources:
https://www.antonlegal.com/blog/how-to-select-a-trustee-or-personal-representative-for-your-trust-or-will/