A personal representative, also known as an executor or administrator, has many responsibilities and can be a big responsibility. Some pros and cons of having a personal representative in New Zealand law include:
Pros
A personal representative can help settle the deceased's affairs and distribute their estate. They can also take advantage of certain exceptions and modifications that were available to the deceased.
Cons
A personal representative can be personally liable for any claims of fraud or mismanagement by the beneficiaries. They may also need to work quickly and deal with beneficiaries who are squabbling or contesting the will.
Other things to think about include:
Who to choose
Who you choose usually depends on your individual family circumstances. For example, it is common to have couples act for each other because professionals tend to charge significant sums of money to take on the roles identified above.
However, you can appoint anyone to be your executor, but it's important to choose someone who can act objectively, understands the law, and has the time to take on the role. You can consider naming a close friend or relative, but you may also want to consider using a professional, such as a lawyer or accountant, particularly if you know there is likely to be a dispute in the family.
Cost
A professional executor will charge for their time and costs, but they are experienced and insured for legal liability. So as long as the person carries out their role responsibly, there should not be a big risk of legal liability.
You can use online tools or hire estate lawyers to help with the process.
Enduring power of attorney
You can appoint someone to handle your financial matters until you die, if you lose decision-making capacity.
