When creating an estate plan, you will consider different factors, including the party that will ensure your wishes are fulfilled and manage your property before distribution. Personal representatives play an integral part in estate planning. Thus, you should be careful about who you choose. They should possess qualities that will allow them to perform their duties competently, and one of them is financial stability.
Here is why you need a financially stable personal representative.
The probate court will require your personal representative to have a probate bond to assume their duties. This bond protects beneficiaries should they fail to act as required.
Insurance companies have factors they consider before selling someone a probate bond, with the leading being financial stability. It can be challenging for an insurer to sell the bond to someone in debt or has declared bankruptcy.
If your chosen party can’t secure a probate bond, the court may treat your estate plan as one without a personal representative. Accordingly, they may appoint another person from the involved parties or distribute the estate according to their criteria. You worked hard to create a plan and chose a personal representative that met your standards. Thus, it can be unfair to have changes made at the last minute.
Another reason to choose a financially stable personal representative is that they will manage your assets before distribution. Of course, their stability doesn’t mean they will automatically do a great job, but it’s a foundation. Since they can manage their wealth capably, they can do the same with yours.
You should choose a personal representative who can manage your wealth and will be allowed by the court to serve. It may help to get legal guidance to make informed decisions.