• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Evergreen Small Business

Actionable Insights from Small Business CPAs

  • Home
  • Small Business FAQ
  • Monographs
    • Business Planning Workbook
    • Download Your Free Copy of the Thirteen Word Retirement Plan
    • Five Minute Payroll Monograph (2019 Edition)
    • LLC Operating Agreement
    • Maximizing PPP Loan Forgiveness
    • Maximizing Sec. 199A Deductions Monograph
    • Preparing Form 3115 for the Tangible Property Regulations
    • Preparing U.S. Tax Returns for International Taxpayers
    • Real Estate Tax Loopholes & Secrets
    • Red Portfolio Black Portfolio FAQ and Download
    • Sample Corporate Bylaws
    • Setting Low Salaries for S Corporations
    • Small Business Tax Deduction Secrets
    • Small Businesses and the Affordable Care Act (Obamacare)
    • Joining Our Affiliate Program
  • Our Bloggers
  • Free LLC Formation Kits
    • Alabama LLC
    • Alaska LLC
    • Arizona LLC
    • Arkansas LLC
    • California LLC
    • Colorado LLC
    • Connecticut LLC
    • Delaware LLC
    • Florida LLC
    • Georgia LLC
    • Hawaii LLC
    • Idaho LLC
    • Illinois LLC
    • Indiana LLC
    • Iowa LLC
    • Kansas LLC
    • Kentucky LLC
    • Louisiana LLC
    • Maine LLC
    • Maryland LLC
    • Massachusetts LLC
    • Michigan LLC
    • Minnesota LLC
    • Mississippi LLC
    • Missouri LLC
    • Montana LLC
    • Nebraska LLC
    • Nevada LLC
    • New Hampshire LLC
    • New Jersey LLC
    • New Mexico LLC
    • New York LLC
    • North Carolina LLC
    • North Dakota LLC
    • Ohio LLC
    • Oklahoma LLC
    • Oregon LLC
    • Pennsylvania LLC
    • Rhode Island LLC
    • South Carolina LLC
    • South Dakota LLC
    • Tennessee LLC
    • Texas LLC
    • Utah LLC
    • Vermont LLC
    • Virginia LLC
    • Washington LLC
    • West Virginia LLC
    • Wisconsin LLC
    • Wyoming LLC
  • S Corporation Kits
    • Alabama S Corporation
    • Alaska S Corporation
    • Arizona S Corporation
    • Arkansas S Corporation
    • California S Corporation
    • Colorado S Corporation
    • Connecticut S Corporation
    • Delaware S Corporation
    • Florida S Corporation
    • Georgia S Corporation
    • Hawaii S Corporation
    • Idaho S Corporation
    • Illinois S Corporation
    • Indiana S Corporation
    • Iowa S Corporation
    • Kansas S Corporation
    • Kentucky S Corporation
    • Louisiana S Corporation
    • Maine S Corporation
    • Maryland S Corporation
    • Massachusetts S Corporation
    • Michigan S Corporation
    • Minnesota S Corporation
    • Mississippi S Corporation
    • Missouri S Corporation
    • Montana S Corporation
    • Nebraska S Corporation
    • Nevada S Corporation
    • New Hampshire S Corporation
    • New Jersey S Corporation
    • New Mexico S Corporation
    • New York S Corporation
    • North Carolina S Corporation
    • North Dakota S Corporation
    • Ohio S Corporation
    • Oklahoma S Corporation
    • Oregon S Corporation
    • Pennsylvania S Corporation
    • Rhode Island S Corporation
    • South Carolina S Corporation
    • South Dakota S Corporation
    • Tennessee S Corporation
    • Texas S Corporation
    • Utah S Corporation
    • Vermont S Corporation
    • Virginia S Corporation
    • Washington S Corporation
    • West Virgina S Corporation
    • Wisconsin S Corporation
    • Wyoming S Corporation
  • Contact Nelson CPA
You are here: Home / Estate tax / Becoming an Executor or Personal Representative

Becoming an Executor or Personal Representative

March 9, 2020 By Stephen Nelson CPA

A little different topic this blog post. I want to talk about you agreeing to act as someone’s executor or personal representative.

You know what I’m referring to here, right? That person appointed by the court to wrap up a person’s affairs after they die and follow the will’s instructions about who gets what.

A First Quick Caveat

Let me, though, issue a first quick caveat. I’m not dispensing legal advice here. You want to get that from a good attorney. Hopefully, the same person you’ve appointed to handle the probate process.

But what I’m going to discuss here are the soft, non-legal issues you want to think about before you agree to do this.

Further, if you’re writing your will and need to appoint an executor or personal representative, consider the stuff I talk about in the following paragraphs. You can ease the burden of your executor or personal representative by making a few wise pre-mortem decisions and choices.

First Tip: Understand the Workload

My first tip: You want to understand the surprisingly heavy workload.

I am pretty sure that most heirs don’t see how much time the work takes.

Just to give you an example, last year I found myself acting as a personal representative for a family member. And over the first four months, I spent nearly a week a month.

Setting up the estate’s bank account, for example? Five to six hours and two trips to the bank. And that’s just one example.

Every heir may call regularly with issues or concerns.

Most vendors, for sort of understandable reasons, won’t know how to handle the death of a former client or customer.

In total, then, you’re talking 100 to 200 hours of work. And much of this work scheduled at the last minute. And much of this work “urgent” to someone involved in the process.

Second Tip: Hire an Experienced Attorney

A second quick tip: Hire an attorney who specializes in estate and probate work.

You want someone thoroughly experienced with the entire process, including the stuff someone only learns by having lots of relevant, recent activity.

Third Tip: Consider Declining Request if Problematic Heirs

If your work as executor or personal representative requires you to deal with problematic heirs, reconsider taking on the work.

Good heirs, operating with the best of intentions, create extra work and stress for folks trying to wrap up an estate.

But if you’ve got someone crazy to deal with? Or someone really difficult? I don’t know… maybe you should just say “no.”

And these three related comments based on real-life experiences and close observations. First, if you have a large number of heirs to deal with? Yeah, that increases the chance you’ll have a troublemaker. (Sorry.)

Second, if you have elderly or sickly heirs, consider the heirs’ heirs too. In other words, if one of the original heirs passes away before you complete your work, you may find yourself now dealing with a new problematic heir.

Third, and sorry, you may want to avoid situations where outside charitable organizations are heirs.

Here’s the problem with charity heirs. If an executor or personal representative finds herself or himself needing to check in with or report to some stranger at some local charity or non-profit about disposing of an asset or timing some distribution? Hey, that’s too much work. And too much time lag.

I personally won’t agree to be an executor or personal representative if charitable organization heirs exist.

And a note to people writing their will and wanting to name charities or flake-y heirs. Talk with your attorney about gifting to the charities while you’re still alive or about using IRA beneficiary designations for charities and heirs. You may be able to send money where you want but without creating a bunch of extra work and risk for your executor or personal representative.

Fourth Tip: Pull Trigger Quickly on Durable Power of Attorney

An awkward suggestion…

If you are someone’s executor or personal representative, you are possibly also the person’s durable power of attorney.

In other words, you’re probably the person your friend or relative has appointed to “step in” if they become incapacitated.

Talk to your attorney about this, but if you find yourself in this situation? You want to invoke the durable power of attorney as soon as you can.

Stuff goes off the rails if someone lies unconscious or barely conscious in a hospital or hospice care unit for several days or weeks.

By the way? I’m sure your attorney will tell you the same thing. And you of course need to get your situation-specific advice from her or him and not from some nearly anonymous blogger.

So I guess here I’m really just saying, hey, listen to your attorney about this issue!

Fifth Tip: Watch Cash Flow of Dependent Heirs

A quick point: If heirs depend on the estate’s assets being sold or on life insurance policy pay-outs for cash to run a household, be aware that sometimes collecting the cash takes a long time.

This example: I was surprised recently to find that the Veterans Administration took two months to pay out a small life insurance policy. Thankfully, this situation didn’t include heirs waiting on the VA payout to keep their household running.

But in a different situation, wow, that two-month delay might have added terrible hardship to the family’s first weeks of grieving.

Note: In my experiences, a bank shows amazingly fast turnaround if you have the right documentation: good personal identification, a death certificate, and letters testamentary.

Sixth Tip: Work Fast

A final quick tip. You can’t rush the work of administering an estate. But this suggestion: Work fast. Fast as you can.

For example, get the probate court to provide letters testamentary as soon as you can. So, within a few days. Secure any bank accounts and other assets. Get the post office to immediately forward the decedent’s mail to you.

If you or I stretch out the work, we’ll only add to the hours of time we spend. Further, we’ll cause the estate to bear more risk and cost.

Some Related Posts You Might Find Useful

How to Inherit a Million Dollars

Right Way to Inherit an IRA Account

Washington State Estate Tax Issues: Three Tips Save Thousands

Filed Under: Estate tax

Primary Sidebar

Welcome

Nelson CPA publishes this blog to help and encourage small business owners. Click here to learn more about our firm.

S corporation Tools

Use our S corporation tax savings calculator to make a quick estimate of the annual tax savings per owner.

Use our S corporation reasonable compensation calculator to estimate appropriate shareholder-employee salaries.

Featured Posts

Trump Savings Accounts provide a slick way for parents to save money for kids.

Trump Savings Accounts – Free Money from the Government

Child focused tax benefits have taken on many forms over the years.  We've had child tax credits, dependent care credits, education credits, 529 … [Read More...] about Trump Savings Accounts – Free Money from the Government

Combine Section 1031 like-kind exchanges with Section 168(k) bonus depreciation to create large deductions.

Bonus Depreciation and 1031 Exchanges: A Hidden Opportunity

Real estate investors know about bonus depreciation. They also know about 1031 like-kind exchanges. But not everyone realizes that the two rules can … [Read More...] about Bonus Depreciation and 1031 Exchanges: A Hidden Opportunity

100% bonus depreciation creates new opportunities for investors and entrepreneurs

The Section 168(k) Bonus Depreciation Purchased Requirement

You can get 100% bonus depreciation on tangible personal property assets you purchase and place into service after January 19, 2025. That seems … [Read More...] about The Section 168(k) Bonus Depreciation Purchased Requirement

International tax issues?

Preparing US tax returns for international taxpayers

Maximize S corporation tax savings

Setting Low S Corporation Salaries

Updated for 2019 tax year changes and now available in print from Amazon!!

Maximizing Sec. 199A Deductions

Free retirement planning help

Picture of Thirteen Word Retirement Plan book

Need to help clients with their PPP loan forgiveness applications?

Recent Comments

  • Planning for the 35% Washington State Estate Tax - Evergreen Small Business on Washington’s Qualified Family-Owned Business Interest Estate Tax Deduction: Updated for 2025
  • Stephen Nelson CPA on Washington State Professional Services Sales Tax
  • Mark Freeman on Washington State Professional Services Sales Tax
  • Washington State Professional Services Sales Tax - Evergreen Small Business on Washington’s Qualified Family-Owned Business Interest Estate Tax Deduction: Updated for 2025
  • The New Big Beautiful Section 199A Deduction - Evergreen Small Business on Big Beautiful Section 199A Calculator

Archives

Copyright © 2025 Stephen L. Nelson, Inc. · News Pro On Genesis Framework · WordPress