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When Can a Personal Representative of an Estate be Held Personally Liable?

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A personal representative is someone charged with handling the administration of a decedent’s estate, whether as an executor under a will or as a court-appointed administrator if the decedent had no will. The personal representative must carry out his or her role in accordance with Kentucky law. In certain circumstances, failure to adhere to relevant laws could result in personal liability, meaning the representative might have to pay the estate’s creditors or beneficiaries out of pocket for any diminution of property or other losses.

The personal representative’s numerous responsibilities include:

  • Using reasonable efforts to locate the most recent will (if any)
  • Starting the probate process by filing the appropriate petition in court
  • Within two months of being appointed, file an inventory of all the estate’s assets and debts, which means getting documentation from banks and investment firms, locating real estate deeds and mortgage information and tracking down valuables that may be in the deceased’s home or safety deposit boxes
  • Determining which assets belong in probate and which can pass outside of probate
  • Opening a bank account in the name of the estate and deposit all liquid assets into it
  • Arranging for probate proceedings in any other state where the deceased owned property
  • Collecting any debts owed to the deceased
  • Paying valid creditor claims according to the priority set forth by law
  • Filing final income tax returns
  • After all debts and taxes are paid, distributing any remaining assets to the heirs/beneficiaries
  • Filing an accounting for the final settlement of the estate in probate court

A personal representative could become personally liable at various points during this process. For example:

  • A personal representative is liable for obligations arising from ownership or control of the estate or for torts committed in the course of administration for which he or she is personally at fault
  • Creditors have six months to file claims against the estate. If the representative distributes estate property to heirs before six months have passed and there is not enough property left to satisfy a valid creditor claim, the representative could be personally liable
  • If the personal representative enters into a contract on behalf of the estate without identifying the estate or revealing that he/she is acting as a representative, he or she could be personally liable for fulfilling the contractual obligations

Executors and administrators can best avoid being held personally liable by retaining legal counsel to make sure all the bases are covered. A probate and estate attorney can help the personal representative understand and complete all the required tasks while avoiding conflicts of interest and minimizing the chances of creating personal liability. The attorney’s fees are a legitimate expense of the estate, so they usually should not cost the personal representative anything.

About Finney Law Firm, LLC

Founded in 2014, FLF has grown to 15 attorneys located in offices in Eastgate and downtown Cincinnati with five major practice areas: Corporate Law, Real Estate Law, Employment Law, Commercial Litigation and Public Interest and Constitutional Litigation.  FLF has the unique claim to three 9-0 victories at the United States Supreme Court for its public interest practice along with breakthrough class action work.

FLF also has an affiliated title insurance company, Ivy Pointe Title, LLC, that closes and insures nearly a thousand commercial and residential real estate transactions annually.

For more information about Finney Law Firm, visit finneylawfirm.com.

Media Contact: Mickey McClanahan; mickey@finneylawfirm.isoc.net; 513.797.2850.

 

The Right of Shareholders to Inspect Corporate Records
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Shareholders have common law and statutory rights to inspect and copy the records and books of corporations and limited liability companies (LLCs). These rights exist so that shareholders are able to ascertain whether corporate management is being properly conducted and so that they have accurate information when voting on corporate issues.

These rights don’t often need to be exercised in public corporations, which are required by law to disclose their financial information regularly. But for privately held corporations, the right of inspection is a vital way for shareholders to keep tabs on management and finances.

UnderKentucky law, a shareholder may inspect and copy any of the following documents by providing the corporation with five business days’ written notice:

  • Articles of incorporation and all amendments to them
  • The company’s bylaws and all amendments to them
  • Resolutions adopted by the board of directors creating a class or series of shares
  • Minutes of all shareholders’ meetings for the last three years
  • Records of all action taken by shareholders without a meeting for the last three years
  • All written communications to shareholders within the last three years, including financial statements
  • A list of all the names and business addresses of the company’s current officers and directors
  • The company’s most recent annual report

Shareholders also have the right, upon five days’ notice, to inspect and copyaccounting records and shareholder records, but only if all of these conditions are met:

  • The shareholder’s demand is made in good faith and for a proper purpose.
  • The shareholder describes the purpose and the records sought with reasonable particularity.
  • The records requested are directly connected to the stated purpose.

If a corporation refuses to allow a requested inspection, the shareholder can file a lawsuit in the court of the county where the corporation’s principle office is located. If the court rules in favor of the shareholder, the corporation may be required to pay the shareholder’s costs and attorney’s fees.

About Finney Law Firm, LLC

Founded in 2014, FLF has grown to 15 attorneys located in offices in Eastgate and downtown Cincinnati with five major practice areas: Corporate Law, Real Estate Law, Employment Law, Commercial Litigation and Public Interest and Constitutional Litigation.  FLF has the unique claim to three 9-0 victories at the United States Supreme Court for its public interest practice along with breakthrough class action work.

FLF also has an affiliated title insurance company, Ivy Pointe Title, LLC, that closes and insures nearly a thousand commercial and residential real estate transactions annually.

For more information about Finney Law Firm, visit finneylawfirm.com.

Media Contact: Mickey McClanahan;mickey@finneylawfirm.isoc.net; 513.797.2850.

 

estate administrator executor personal liability personal representative

Author: The Right of Shareholders to Inspect Corporate Records

Shareholders have common law and statutory rights to inspect and copy the records and books of corporations and limited liability companies (LLCs). These rights exist so that shareholders are able to ascertain whether corporate management is being properly conducted and so that they have accurate information when voting on corporate issues. These rights don’t often need to be exercised in public corporations, which are required by law to disclose their financial information regularly. But for privately held corporations, the right of inspection is a vital way for shareholders to keep tabs on management and finances. Under Kentucky law, a shareholder may inspect and copy any of the following documents by providing the corporation with five business days’ written notice:

  • Articles of incorporation and all amendments to them
  • The company’s bylaws and all amendments to them
  • Resolutions adopted by the board of directors creating a class or series of shares
  • Minutes of all shareholders’ meetings for the last three years
  • Records of all action taken by shareholders without a meeting for the last three years
  • All written communications to shareholders within the last three years, including financial statements
  • A list of all the names and business addresses of the company’s current officers and directors
  • The company’s most recent annual report
Shareholders also have the right, upon five days’ notice, to inspect and copy accounting records and shareholder records, but only if all of these conditions are met:
  • The shareholder’s demand is made in good faith and for a proper purpose.
  • The shareholder describes the purpose and the records sought with reasonable particularity.
  • The records requested are directly connected to the stated purpose.
If a corporation refuses to allow a requested inspection, the shareholder can file a lawsuit in the court of the county where the corporation’s principle office is located. If the court rules in favor of the shareholder, the corporation may be required to pay the shareholder’s costs and attorney’s fees. About Finney Law Firm, LLC Founded in 2014, FLF has grown to 15 attorneys located in offices in Eastgate and downtown Cincinnati with five major practice areas: Corporate Law, Real Estate Law, Employment Law, Commercial Litigation and Public Interest and Constitutional Litigation.  FLF has the unique claim to three 9-0 victories at the United States Supreme Court for its public interest practice along with breakthrough class action work. FLF also has an affiliated title insurance company, Ivy Pointe Title, LLC, that closes and insures nearly a thousand commercial and residential real estate transactions annually. For more information about Finney Law Firm, visit finneylawfirm.com. Media Contact: Mickey McClanahan; mickey@finneylawfirm.isoc.net; 513.797.2850.