Legally Speaking

Creating an estate plan requires you to make many decisions. In addition to decisions about the distribution of your property, you will need to choose a person or entity to act as Personal Representative of your estate. Among other duties, the Personal Representative is responsible for collecting the assets of the estate, protecting the estate property, preparing an inventory of the assets, paying bills, representing the estate in claims, and distributing the estate property to the beneficiaries. There is no consensus as to who makes the best Personal Representative. It all depends on your individual circumstances. It often makes sense to nominate someone who is a major beneficiary under the will, because he or she is likely to do a conscious job of managing the estate affairs. Many people name their spouse or an adult child as Personal Representative. If you think the roles of Personal Representative would be too much of a burden on your spouse or adult child, you may wish to name a bank or other corporate fiduciary, even though it means paying a fee.

No significant legal expertise is required to serve as Personal Representative. Most of the issues are financial. In formal probate proceedings, the Personal Representative will work with a lawyer to probate the will. The lawyer handles the court filings and appearances while the Personal Representative gathers the information and oversees the administration of the estate.

If you operate your own business, consider making your Personal Representative someone knowledgeable regarding the operation of the business. Sometimes the specialized knowledge in your area of business is easier for a colleague to master than your spouse or some other relative, especially if they are dealing with grief, illness, or some other disability. A bank or other corporate fiduciary is often advisable for larger estates that may involve complicated tax issues or other specialized expertise.

Think carefully about the identity of your Personal Representative when you draft your will and talk to your lawyer about what your estate may require. You may also want to talk to your proposed Personal Representative to make sure he or she is willing to act.

This column is based on general principles of Wisconsin law, is for informational purposes only, and is not intended to provide legal advice. Each legal matter must be judged on the merits of its unique circumstances. If you have a legal problem, consult an attorney.

Richard A. Hauser is an attorney at Pinkert Law Firm LLP with offices in Sturgeon Bay and Sister Bay. 920.743.6505 or 920.854.2616.