Disclaimer: This article provides general information and does not constitute legal advice. Consult a qualified attorney in Vermont for advice tailored to your situation.
Detailed Answer
In Vermont, a personal representative (PR) acts as a fiduciary for an estate. The PR owes heirs clear communication and must follow statutory duties under Title 14 of the Vermont Statutes. Below are the key obligations:
1. Notice to Heirs and Beneficiaries
Within 30 days of qualifying, the PR must notify all heirs and devisees in writing. This notice must include the PR’s contact information, the probate court file number, and a warning about creditor claims. See 14 V.S.A. § 312.
2. Inventory and Appraisement
The PR must file a full inventory and appraisement within three months of appointment. This document lists estate assets and fair-market values. The PR must serve a copy on each heir. See 14 V.S.A. § 309.
3. Accounting and Record-Keeping
The PR must keep accurate records of all receipts, expenses, distributions, and investments. They must file a formal account at least once a year or when requested by an interested party. The account shows estate transactions and proposed distributions. See 14 V.S.A. § 315.
4. Fiduciary Duties
- Duty of Loyalty: The PR must act solely in the estate’s interest and avoid conflicts.
- Duty of Impartiality: The PR must treat all heirs fairly, especially if the estate has both beneficiaries and creditors.
- Duty to Preserve Assets: The PR must protect estate property and avoid waste or neglect.
5. Distribution of Estate Assets
After paying debts, taxes, and administration expenses, the PR must prepare a distribution plan and serve it on heirs. The plan must identify what each heir will receive and allow an opportunity to object before final distribution. Final distributions require court approval.
Helpful Hints
- Keep copies of all notices, inventories, and account statements you send to heirs.
- Respond promptly to heirs’ requests for information in writing to document compliance.
- Use professional appraisers for assets with uncertain values.
- Maintain separate bank accounts for estate funds to avoid commingling.
- Consult probate court clerks or local bar associations for procedural questions.