CHAPTER 8: PERSONAL REPRESENTATIVES: TYPES, PRE-PROBATE DUTIES, AND APPOINTMENT MATCHING a. special administrator b. administrator cum testamento annexo c. administrator de bonis non d. public administrator e. ancillary administrator f. Letters Testamentary g. Letters of Administration h. surety bond i. Decree of Distribution j. final account k. disclaimer 1. A court order appointing an administrator of an estate when the decedent died intestate

2. A court order recognizing that all allowed claims and expenses of an estate have been paid and that all heirs are named and the share of the decedent’s property to which they are entitled is listed

3. A court order admitting a will as valid and authorizing the executor named in the will to handle the administration of the decedent’s estate

4. A certificate in which an individual or corporation promises to pay the probate court a certain amount of money if the personal representative fails to faithfully perform the duties of administering the decedent’s estate

5. A personal representative appointed temporarily by a probate court to handle certain immediate needs of an estate

6. A list made by an executor or administrator of an estate that includes all estate assets that he/she has collected as well as all receipts and disbursements

7. A person appointed by the court to oversee the administration of a decedent’s estate that is located in a foreign state

8. A personal representative appointed by the court when a will maker does not name an executor or the named executor cannot serve

9. A public official appointed by the court to administer the property of an intestate who has left no person entitled to apply for appointment as personal representative and Letters of Administration

10. A personal representative appointed by the court when a previous personal representative begins but fails to complete administration 11. A petition filed with the court by a beneficiary who wishes to surrender any interest in a will

1. ANS: G 2. ANS: I 3. ANS: F 4. ANS: H 5. ANS: A 6. ANS: J 7. ANS: E 8. ANS: B 9. ANS: D 10. ANS: C 11. ANS: K

TRUE/FALSE 1. Court judges are prohibited from being personal representatives. ANS: T True Correct. Noncitizens of the United States and nonresidents of the domiciliary state may be disqualified as being unsuitable to be personal representatives. False Incorrect. Convicted felons and minors are also prohibited from being personal representatives.

2. The personal representative is responsible for discovering, collecting, and preserving all probate assets of any value. ANS: T True Correct. The personal representative must also manage the probate estate if it includes real estate. False Incorrect. Although the personal representative must make a list of nonprobate assets, he/she is not responsible for discovering, collecting, or preserving them.

3. If a personal representative does not possess adequate skills to discover, collect, and preserve digital assets, he/she should hire someone who has the requisite knowledge. ANS: T True Correct. If the personal representative is not competent to handle this portion of the estate, he/she should hire a third party who can assist him/her. False Incorrect. If a personal representative is not technology competent, he/she could be held liable for mismanagement of the estate.

4. When a will has been discovered, copies of the will should be prepared for the beneficiaries and devisees. ANS: T True Correct. A summary of the contents of the will should also be included. False Incorrect. The original will must be given to the probate court.

5. The attorney is likely to be called in to assist in sorting out a decedent’s estate before the funeral arrangements are complete. ANS: F False Correct. Copies of the death certificate are obtained from the funeral director after the attorney has been employed. True Incorrect. The funeral director obtains the necessary burial permits and death certificate.

6. Only family members should be invited to the family conference. ANS: F False Correct. All persons named in a will, or heirs, if there is no will, should be invited to attend. True Incorrect. Nonfamily members may be named in the will.

7. Property in joint tenancy is a probate asset and should be included in the list of assets subject to probate. ANS: F False Correct. Property in joint tenancy is nonprobate property. True Incorrect. Property in joint tenancy passes directly to the joint tenant.

8. During the family conference, the paralegal should ask whether the decedent made any advancements to any beneficiaries or heirs. ANS: T True Correct. Such advancements could have direct bearing on the estate. False Incorrect. This is true in all cases.

9. The requirements for a bond and surety vary from state to state. ANS: T True Correct. State statutes may or may not require bonds. False Incorrect. Some states require a bond for all personal representatives.

10. Witnesses to a will must appear in court to testify to the validity of the will. ANS: F False Correct. A signed affidavit may be used to prove a will. True Incorrect. A self-proved will removes the need for witness testimony.

11. Letters of Authority must be presented to have the decedent’s mail forwarded to the personal representative. ANS: T True Correct. Letters of Authority are also required to withdraw funds from the decedent’s bank accounts. False Incorrect. Letters of Authority show that the personal representative is the authorized representative of the estate.

MULTIPLE CHOICE 1. While in the process of administering the estate of his deceased brother, Larry, John also died, and his sister, Sue, having been appointed the new personal representative, is now the: a. Administratrix cum testamento annexo b. Public administratrix c. Administratrix de bonis non d. Special administratrix ANS: C Administratrix de bonis non Correct. De bonis non means “administrator of goods not administered.” Administratrix cum testamento annexo Incorrect. This might have been true if John had been unqualified to serve. Public administratrix Incorrect. A public administrator is not a blood relative. Special administratrix Incorrect. A special administratrix is a temporary administrator of the estate.

2. A paralegal working with a personal representative might be responsible for all of the following EXCEPT: a. Notifying appropriate parties of the decedent’s death b. Providing certified copies of the death certificate to the funeral director c. Searching for and obtaining the will and other personal business records d. Setting a date for the family conference ANS: B Providing certified copies of the death certificate to the funeral director Correct. The paralegal will obtain copies of the death certificate from the funeral director. Notifying appropriate parties of the decedent’s death Incorrect. The paralegal might need to research the locations of all appropriate parties so as to notify them. Searching for and obtaining the will and other personal business records Incorrect. The paralegal will work with the personal representative to gain access as needed. Setting a date for the family conference Incorrect. The paralegal will set the date after contacting the appropriate persons.

3. Which is a legal obligation of financial institutions with which the decedent did business? a. To close any demand accounts held by the decedent b. To encourage those who hold accounts with the decedent to withdraw funds to avoid death taxes c. To cancel all credit card debts d. To present safe deposit box contents whenever requested ANS: A To close any demand accounts held by the decedent Correct. Demand accounts include all checking accounts.

To encourage those who hold accounts with the decedent to withdraw funds to avoid death taxes Incorrect. Banks should prevent this from happening. To cancel all credit card debts Incorrect. However, credit cards should be canceled so that no new debts are incurred. To present safe deposit box contents whenever requested Incorrect. Such contents must be in safekeeping until otherwise directed by the court.

4. During the family conference, the paralegal or the supervising attorney should: a. Provide family members with a list of personal debts b. Assume no family members were owed a debt by the deceased c. Provide family members with the names of the deceased’s financial advisers d. Discuss the need for appointing fiduciaries ANS: D Discuss the need for appointing fiduciaries Correct. The paralegal or the supervising attorney should ask if any trustees named in a testamentary trust are willing to serve. Provide family members with a list of personal debts Incorrect. The paralegal or the supervising attorney should request a list of personal debts from the family. Assume no family members were owed a debt by the deceased Incorrect. The paralegal or the supervising attorney should explain that any creditors will need to file a claim. Provide family members with the names of the deceased’s financial advisers Incorrect. The paralegal or the supervising attorney should ask for the contact information of the deceased’s financial advisers.

5. The personal representative will generally NOT need to file a bond if: a. A corporation is appointed personal representative b. There is no will c. The testator requested a bond in the will d. A bond is required by state statute ANS: A A corporation is appointed personal representative Correct. Such a corporation will likely be a bank or trust company. There is no will Incorrect. A bond usually is required if there is no will, especially if minor children survive the intestate. The testator requested a bond in the will Incorrect. A bond might not be required if the testator stated that the representative may serve without bond. A bond is required by state statute Incorrect. Some states require bonds for all personal representatives.

6. The court may require the subscribing witnesses to testify in court to all of the following EXCEPT: a. That they watched the testator sign the will b. That they knew the testator and that he/she was legally capable and competent c. That a self-proved will is valid d. That the testator declared the document to be the will ANS: C That a self-proved will is valid Correct. A self-proved will must be witnessed in the presence of a notary public.

That they watched the testator sign the will Incorrect. Witnesses might also have to testify that they saw the testator initial all the pages. That they knew the testator and that he/she was legally capable and competent Incorrect. Witnesses will have to state that the testator was legally capable and of sound mind. That the testator declared the document to be the will Incorrect. Witnesses will also have to testify that they were asked by the testator to be witnesses to his/her will.

7. Certified copies of the Letters Testamentary or Letters of Administration are needed to do all of the following EXCEPT: a. Open an account in the name of the estate b. Open the decedent’s safe deposit box c. Withdraw money from existing savings accounts of the decedent d. Obtain the Letters of Authority ANS: D Obtain the Letters of Authority Correct. The Letters Testamentary and Letters of Administration are both Letters of Authority. Open an account in the name of the estate Incorrect. The Letters prove that the person is the authorized representative of the estate. Open the decedent’s safe deposit box Incorrect. The bank will not release the contents without these papers. Withdraw money from existing savings accounts of the decedent Incorrect. The Letters show that the person has the power to withdraw funds.

8. What would cause a person applying for Letters Testamentary to be deemed unsuitable? a. A misdemeanor record b. Residency in the domiciliary state c. Being a minor d. No history of mental illness ANS: C Being a minor Correct. A minor may not enter into a binding contract. A misdemeanor record Incorrect. However, a felony record would cause a person to be deemed unsuitable. Residency in the domiciliary state Incorrect. However, residency outside of the domiciliary state could disqualify a person. No history of mental illness Incorrect. Mental illness could be a disqualifying factor.

9. Which is NOT performed by an ancillary administrator? a. Providing a petition to prove the will b. Collecting assets in a foreign state c. Paying any creditors in a foreign state d. Transferring the balance of the estate to the domiciliary representative ANS: A Providing a petition to prove the will Correct. This petition establishes the court’s jurisdiction over the estate. Collecting assets in a foreign state Incorrect. The ancillary administrator handles out-of-state property. Paying any creditors in a foreign state Incorrect. The ancillary administrator also pays taxes due in the foreign state. Transferring the balance of the estate to the domiciliary representative Incorrect. Transferring this balance is the final duty of the ancillary administrator.

10. Which is NOT a duty of the personal representative in closing the estate after the distribution of assets? a. Signing and filing a petition for settlement and distribution b. Paying the law firm’s fee c. Proving that the remaining assets of the estate have been distributed d. Submitting a final account that contains a list of all assets collected ANS: B Paying the law firm’s fee Correct. The law firm’s fee must be paid before assets are distributed. Signing and filing a petition for settlement and distribution Incorrect. The court will then issue an order setting a hearing on the final account. Proving that the remaining assets of the estate have been distributed Incorrect. In addition, these assets must correspond to the actual inventory. Submitting a final account that contains a list of all assets collected Incorrect. This list must include all probate assets.