Should You Designate a Family Member as Your Personal Representative?

There are many important decisions you will have to make when planning your estate and choosing a personal representative is an important one. After you pass away, the person named in your will as your personal representative will manage your estate, settle your debts, and distribute your property according to your wishes.

There are many factors to consider when choosing a personal representative, but many people instinctively choose a family member. As with most things in life, there are advantages and drawbacks of doing this. Below, our Utah estate planning attorney explains what these are.

Benefits of Choosing a Family Member as Personal Representative

One of the biggest benefits of selecting a family member is that they have a connection to you and your other loved ones. They understand the dynamics of the family relationship and probably know the preferences and values that mattered to you most. This may place them in a better position to handle family disputes with empathy and make decisions according to your wishes.

A practical benefit of choosing a family member as your personal representative is the potential to reduce costs. Personal representatives have important duties and are generally entitled to compensation, which may be set by state law as a fixed fee, a certain percentage of the estate, or an amount approved by the court. If a family member agrees to waive this compensation, it can help minimize expenses and maximize the inheritance for your loved ones.

Settling an estate is also a very personal process. When someone is not a relative but they are involved with family affairs, it can make things uncomfortable for everyone. A family member can ensure matters are kept private.

Drawbacks of Choosing a Family Member as a Personal Representative

Just as there are many benefits of choosing a family member as a personal representative, it can also have many drawbacks. First and foremost, it is important to remember that your personal representative will be responsible for completing many tasks during a time when they are grieving your loss. Things may become even more difficult if there are family disputes, as they will be at the center of them as your representative. For many people, being a representative after a loss may be too emotional and stressful.

Serving as personal representative also requires certain legal and financial knowledge. If your family members are unfamiliar with these matters, the learning curve may be too steep for them. Inexperience can not only create tax and legal implications for your estate, but it may also put your representative at risk of being found liable for improperly administering your estate.

Lastly, selling your estate can take months, or even years. If the family member you are considering has a full-time job, children, or other responsibilities, they may not be able to make the time commitment being a representative requires.

Our Estate Planning Attorney in Utah Can Provide the Legal Advice You Need

Planning your estate requires careful attention to detail and thorough planning. At AGS Law, our Utah estate planning attorney can provide the legal advice you need throughout the entire process so you can make informed decisions that will protect you and those you love. Call us now at 801-477-6144 or contact us online to request a consultation and to learn more.

Source:

le.utah.gov/xcode/Title75/Chapter3/C75-3-P7_1800010118000101.pdf