Estate Planning & Probate Specialists

Estate Planning & Probate Specialists

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Personal representatives may need to operate an estate’s business

It is inevitable that everyone in Texas will pass away. It is one of the unfortunate facts of life and one of life’s only guarantees. When people do pass away they cannot bring anything with them and all the possessions and assets that they accumulated over their life will stay here. The question is who will receive the possessions when they are gone. However, people can control who receives their assets after they have passed through a Will. In their will they can specifically state who will receive their possessions as well as how much a particular person will receive.

Another part of the will directs who will be responsible for ensuring that the people named in the will receive the correct property and assets from the estate. This person is called the personal representative and is responsible for administration of the estate. These people have to gather the assets and potentially value them. They will also have to figure out all of the debts owed by the deceased and pay those debts if possible, which could include having to liquidate certain property. Then finally they need to distribute the remaining property to the proper people.

The personal representative can also have a number of other duties depending on the type of assets that the deceased owned at the time of their death. One of these assets is a business. Personal representatives can be ordered to operate a business. This is something that can be ordered by a judge after the judge determines that the will does not specifically give the business to someone and it is in the best interests of the estate to continue operation of the business.

There are many people who own businesses in Texas and just like other property and assets when people die they cannot bring the business with them. Running the business after one dies is not always on the forefront of a business owner’s mind though and in certain situations the personal representative of the estate may be ordered to continue operating the business in addition to their other duties. Estate administration can be complicated and consulting with an experienced attorney could be beneficial.