Rutkowski Law Firm

Will Naming a Personal Representative Diminish My Estate Value?

What may be called an “executor” of an estate in other states is known as a personal representative in Michigan. Personal representatives in Michigan are entitled to reasonable fees for their work. The personal representative plays many different important roles in the administration of an estate.

The court evaluates a Will’s appointment of a personal representative and recognizes that this person is entitled to possible compensation. A personal representative’s duties include managing estate residences, gathering information related to bank accounts, mutual funds and stocks, and arranging appraisal of all real estate as well as tangible personal property.

This person also pays out all of the decedent’s final expenses and debts, ensures that all estate tax and income tax returns are filed and prepared, collects life insurance proceeds, and makes distributions to the beneficiaries of the estate.

The Michigan Estate and Protected Individuals Code enables this person to charge reasonable compensation for services performed while managing an estate. The court will evaluate the complexity of the estate, the need for any probate litigation, and the number of hours expended when considering what constitutes reasonable compensation.

It’s important to recognize that the personal representative you name in your Michigan Will may not wish to receive a fee from the estate for performing the associated duties. This person can renounce the right to a part or all of the entitled compensation by filing a written fee renunciation with the court and serving it to interested parties.

Should the personal representative wish to be compensated, the payments given to the personal representative could diminish the value of the estate. However, compensating the personal representative can also help to ensure that your estate is handled properly and that assets are distributed to your beneficiaries in an efficient manner. Rutkowski Law Firm is here to help you when it’s time to name a personal representative for your estate- call us today.

 

 

 

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