Oregon Personal Representative Guide: What to Do When You’re Responsible for an Estate
By serving as the personal representative or executor of an estate, you can ensure your loved one’s final wishes are carried out. It’s a practical way to honor someone you have lost, but it’s also a big responsibility. This guide explains what you need to do as the personal representative.
Your Duty as a Personal Representative in Oregon
The personal representative, also known as the executor of an estate, is responsible for managing the assets of an estate during the probate process. As the personal representative, you will gather the assets, notify creditors, settle debts and distribute the remaining assets.
Throughout this process, you have a legal responsibility to act in the best interests of the estate and its beneficiaries as a fiduciary. Under Oregon law, a personal representative must preserve, settle and distribute the estate in accordance with the terms of the will and Oregon law, and this must be done “as expeditiously and with as little sacrifice of value as is reasonable under the circumstances.”
You may be accused of breaching your fiduciary duty if you:
- Act in a way that benefits yourself instead of following the will and state law.
- Fail to perform your duties in a reasonable timeframe.
- Mismanage the estate in a way to causes it to lose value.
If you breach your fiduciary duty, you may be removed from the position. You could also have to pay for losses and legal costs. In cases involving fraud or theft, you could face criminal charges.
Accepting the Role of Personal Representative
A close friend or family member may have named you as the personal representative in their will. If a loved one died without a will, you may volunteer for the position, although preference is given to individuals based on their relationship to the deceased and in accordance with state law.
Before you can serve as the personal representative, you must receive authorization from the court. Some people may be ineligible for various factors, such as being a minor. To receive approval, file the necessary paperwork with the court. If you are approved, you will receive the letters testamentary giving you authorization to manage the estate.
Protecting Yourself and the Estate
Because serving as a personal representative involve serious financial and legal obligations, it’s important to take steps to protect yourself, the estate and the beneficiaries of the estate.
- Secure a probate bond if necessary. The court may require you to be bonded in order to protect the estate and its beneficiaries from mistakes or mismanagement.
- Hire a probate attorney. An attorney can help you fill out the necessary paperwork, meet deadlines and fulfill your obligations as a personal representative. The average person is unfamiliar with the probate process and may make mistakes as a result; a probate attorney offers guidance and expertise to help you avoid mistakes and proceed with confidence.
The Probate Process
As the personal representative, you will manage the estate through the probate process. Key steps include the following:
- Open the estate. File paperwork with the court to seek appointment as the personal representative and start probate.
- Take an inventory. Identify all of the assets in the estate. This may include financial accounts, real estate, vehicles, personal property and other items. As the personal representative, you are responsible for safeguarding these assets until they can be properly distributed, so determine what steps are necessary to do this.
- Notify creditors. Send direct notices to known creditors and publish a general notice in the newspaper.
- Settle debts. Pay valid claims against the estate, following the order of priority established under Oregon law. The estate also needs to pay estate taxes if they are owed.
- Distribute the remaining assets. Distribute the assets that are left after debts are settled, following the terms of the will and state law.
- Close the estate. File the necessary paperwork with the court to officially close the estate. Your work is done!
Are you serving as the personal representative of an estate? Skinner Law can help you understand your legal obligations and fulfill your duties.
What if Multiple Beneficiaries Disagree About How to handle Real Estate?
Disputes over inherited real estate are common. In a common scenario, multiple siblings inherit their parents property. One sibling wants to sell the house and split the proceeds. Another wants to live in it full time. Another wants to share it and use it as a vacation home.
When a dispute occurs, the beneficiaries must find a way to resolve the conflict. For example, one beneficiary may buy out another beneficiary’s claim to the house.
What if You Inherit a House with Tenants?
If you inherit a house with tenants, the lease remains valid, and you must adhere to it. You become the new landlord with all the responsibilities that this position entails.
What if You Can’t Afford to Inherit a House?
A house can be expensive to maintain. The new owner will be responsible for property tax, insurance, repairs and maintenance. If the house still has a mortgage, the new owner takes on responsibility for the payments.
Sometimes the costs are too much, and the beneficiary cannot afford to keep the house. In some cases, the beneficiary may decide to reject the inheritance. This could be an attractive option in some circumstances, for example, if the beneficiary wants the house to stay in the family. The beneficiary could also inherit the house and then sell it or rent it. Learn more about what to do if you inherit an asset you can’t afford to keep.
Are you dealing with inherited real estate in Oregon?