Being named a personal representative (commonly known as an executor) is an honor and a responsibility. However, many people assume the role is merely a formality and involves only distributing property to the heirs.
In reality, the job is far more comprehensive and comes with fiduciary duties and strict procedural requirements. They have multiple financial and legal obligations, as well as the responsibility to ensure that the deceased’s final wishes are carried out properly.
Qualifying with the court
Before the personal representative can begin their duties, they must first “qualify” in the circuit court of the city or county where the deceased person lived. This typically involves presenting the will, taking an oath and, in many cases, posting a bond.
Once the court legally authorizes the personal representative, they can begin the process of identifying, locating and securing the estate’s assets, which may include:
- Bank accounts
- Investments
- Real estate
- Vehicles
- Business interests
- Personal belongings
These assets must be safeguarded to prevent loss or mismanagement during the administration process.
Dealing with debts and other financial obligations
The personal representative needs to address the estate’s financial obligations before any inheritances are distributed. This includes paying funeral expenses, outstanding bills and other administrative costs. If the estate doesn’t have the necessary funds, it’s considered “insolvent,” and Virginia law specifies the order in which creditors are paid if there aren’t enough assets to pay all of them.
While Virginia doesn’t impose a state estate tax, the personal representative may still need to file the decedent’s final income tax return. Failing to handle debts and taxes can expose the personal representative to liability.
Once debts and taxes have been paid, the personal representative can begin distributing the remaining assets in accordance with the will. They must follow the will’s instructions exactly. Even a well-meaning deviation can lead to disputes or legal consequences.
After completing all required tasks and obtaining final accounting approval, the personal representative can formally close the estate, thereby completing their duties. Due to the significant responsibilities and complex rules of estate administration, many personal representatives work with a legal professional to help ensure they fulfill their duties properly.
