When someone dies, their estate must be administered according to Florida law. The person responsible for this process is called the personal representative (referred to as an executor in many other states). Serving as a personal representative is a significant responsibility that involves managing assets, paying debts, filing tax returns, and distributing property to beneficiaries. Understanding these duties helps you prepare if you are named to serve and ensures the estate is administered properly. An Orlando, FL probate lawyer can guide personal representatives through each step of the administration process.
Getting Appointed as Personal Representative
Before you can act on behalf of an estate, you must be formally appointed by the court. The probate process begins with filing a petition for administration with the circuit court in the county where the decedent resided.
If the decedent left a will, the original will must be filed with the court. The will typically nominates a personal representative, and the court will generally honor this nomination unless the nominee is disqualified or declines to serve.
If there is no will, an interested person (usually a family member) petitions for appointment. Florida law establishes preferences for who may serve, generally favoring the surviving spouse, then other family members.
Once the court approves the petition, it issues letters of administration. These letters are your legal authority to act on behalf of the estate. You will need certified copies of these letters for banks, title companies, and other institutions.
Florida law requires most personal representatives to be represented by an attorney throughout the administration. The only exception is when the personal representative is the sole beneficiary of the estate.
Immediate Responsibilities
Upon appointment, the personal representative has several immediate duties.
Secure the decedent’s property. This includes changing locks if necessary, securing valuables, and ensuring property is properly insured. Vacant real estate is particularly vulnerable and may require special insurance coverage.
Locate important documents. Gather the will, trust documents, deeds, titles, bank statements, investment account statements, insurance policies, tax returns, and other financial records. These documents help you identify assets and understand the decedent’s financial situation.
Notify interested parties. Beneficiaries named in the will and heirs who would inherit under intestacy laws must receive formal notice of the administration. This gives them an opportunity to participate in the process and raise any concerns.
Open an estate bank account. All estate funds should be deposited into a dedicated estate account. Never commingle estate funds with your personal accounts. The estate account is used to pay debts and expenses and to hold funds until distribution.
Notifying Creditors
Florida law requires personal representatives to notify creditors and give them an opportunity to file claims against the estate.
Known creditors must receive direct notice by mail. This includes anyone you reasonably believe has a claim against the estate, such as credit card companies, medical providers, and mortgage lenders.
Unknown creditors are notified through publication. You must publish a notice to creditors in a newspaper of general circulation in the county where the estate is being administered. The notice must be published once a week for two consecutive weeks.
Creditors have three months from the first publication date to file claims, or 30 days from receipt of direct notice, whichever is later. Claims filed after the deadline are generally barred.
Identifying and Valuing Assets
The personal representative must identify all probate assets and determine their value as of the date of death. Not all assets the decedent owned are probate assets. Assets that pass outside probate include property held in trust, assets with beneficiary designations, jointly owned property with rights of survivorship, and proceeds from life insurance payable to named beneficiaries.
Probate assets typically include real estate owned solely by the decedent, bank accounts in the decedent’s name alone, vehicles titled in the decedent’s name, personal property, and business interests.
You must file an inventory of probate assets with the court within 60 days of appointment. The inventory lists each asset and its estimated fair market value. Appraisals may be necessary for real estate, business interests, collectibles, and other hard-to-value items.
Managing Estate Assets
During administration, the personal representative has a fiduciary duty to manage estate assets prudently. This means protecting assets from loss, investing cash appropriately, maintaining insurance, and avoiding speculative or risky transactions.
You may need to continue operating a business, manage rental property, or make decisions about investments. When in doubt, seek guidance from the court or consult with professionals such as accountants, financial advisors, or the estate’s attorney.
Keep detailed records of all transactions. You will need to account for every dollar that comes into or goes out of the estate.
Paying Claims and Debts
After the creditor claim period expires, you must review and pay valid claims. Florida law establishes a priority order for paying claims when the estate does not have sufficient assets to pay everyone in full.
The priority order under Florida Statutes Section 733.707 is as follows: costs of administration (including attorney fees and personal representative compensation), funeral expenses up to $6,000, debts and taxes with preference under federal law, medical expenses of the last 60 days of illness, family allowance, arrearage from court-ordered child support, and all other claims.
You have the authority to dispute invalid claims. If a creditor files a claim you believe is improper, you can file an objection, and the court will determine whether the claim should be paid.
Filing Tax Returns
The personal representative is responsible for filing the decedent’s final income tax return and any required estate tax returns.
The final Form 1040 covers the period from January 1 of the year of death through the date of death. Income received after death is reported on the estate’s income tax return (Form 1041) or passed through to beneficiaries.
If the estate earns income during administration (such as interest, dividends, or rental income), you must obtain an employer identification number (EIN) for the estate and file estate income tax returns.
Federal estate tax returns (Form 706) are required only for estates exceeding the federal exemption threshold. Learn more about estate taxes and when they apply.
Distributing Assets to Beneficiaries
After paying all debts, taxes, and administrative expenses, the personal representative distributes remaining assets to beneficiaries. If there is a valid will, assets are distributed according to its terms. If there is no will, Florida’s intestacy laws determine who inherits.
Before making final distributions, it is wise to obtain receipts from beneficiaries acknowledging what they received. This protects you from later claims that distributions were not made properly.
Some estates involve ongoing trusts that continue after probate closes. For example, a will may create a trust for minor children or a special needs trust. In these cases, assets are transferred to the trustee rather than distributed outright to beneficiaries.
Accounting and Closing the Estate
Before closing the estate, the personal representative must provide an accounting to interested persons. The accounting shows all assets collected, income received, expenses paid, and distributions made. Beneficiaries have an opportunity to review the accounting and raise objections.
Once all distributions are complete and the accounting is approved, you file a petition for discharge with the court. The court reviews the administration and, if everything is in order, enters an order discharging you from further duties and liability.
Personal Representative Compensation
Florida law entitles personal representatives to reasonable compensation for their services. The compensation is typically calculated as a percentage of the estate’s value, though the specific amount should be reasonable given the work involved.
Compensation is an administrative expense paid from estate assets before distribution to beneficiaries. Family members serving as personal representative sometimes waive compensation, but you are entitled to be paid for your work.
Seek Professional Guidance
Serving as personal representative is a significant responsibility with potential personal liability if duties are not performed properly. Choosing the right people to serve in this role is an important part of estate planning.
Magill Law Offices assists personal representatives throughout the probate process, ensuring the estate is administered efficiently and in compliance with Florida law.
To discuss estate administration or probate matters, contact Magill Law Offices to schedule a free consultation.