Nevada residents who are named as the personal representative of an estate have an important duty to carry out. Their responsibilities include collecting assets, paying bills and filing income and estate tax returns if necessary. They are also tasked with distributing money or other assets that remain in the estate to beneficiaries. Personal representatives could be liable if reckless or egregious actions are taken.
However, judges realize that most who fill the role are not perfect and can be expected to make honest mistakes. To add further protection, it may be possible to ask to serve under a supervised administration. This means that court approval will be needed before any significant steps can be taken in the estate administration process. Personal representatives can also hire legal counsel to assist them in making decisions about a deceased person’s estate.
However, this could result in more time being spent resolving issues related to the estate, which could increase the cost of doing so. It is important to note that serving as a personal representative is not overly time consuming in itself. In most cases, a representative is not held liable for being unable to pay an estate’s creditors. If the money in an estate runs out, creditors are generally unable to go elsewhere to seek payment of a balance owed at the time of death.
Naming an executor is a part of the estate planning process that an individual may not want to overlook. This person will ideally be trustworthy, pay attention to details and have an understanding of the deceased’s final wishes. An executor can be any adult of sound mind or an entity such as a bank or law office.