Disclaimer: This article provides general information about Arkansas probate procedures. It does not constitute legal advice. Consult a qualified attorney for guidance specific to your situation.
Detailed Answer
1. Role of the Personal Representative
After a will is admitted to probate or an administrator is appointed, the personal representative takes control of the decedent’s assets. Arkansas law grants them power to collect estate property, manage ongoing obligations, and settle expenses. See Ark. Code Ann. § 28-41-101.
2. Establishing an Estate Bank Account
The personal representative should open a dedicated estate bank account. They deposit funds from the estate—bank balances, investment liquidations, or insurance proceeds—into this account. This separation prevents commingling personal and estate funds and ensures clear tracking of receipts and disbursements.
3. Payment of Ongoing Bills
Mortgages, utilities, insurance premiums, and property taxes often continue during probate. The personal representative may use estate funds to maintain these obligations as part of ordinary administration. Arkansas courts expect bills necessary to preserve estate value to be paid promptly.
4. Priority of Claims and Administrative Expenses
Arkansas law sets the order for paying funeral costs, administration expenses, secured debts, taxes, and unsecured claims. The personal representative must follow this hierarchy. For full details, refer to Ark. Code Ann. Title 28, Ch. 41, Subch. 2.
5. Seeking Court Approval for Extraordinary Expenses
Some costs—such as major repairs or litigation—exceed routine administration. The personal representative should petition the probate court for authorization before incurring these expenses. The court will review the necessity and reasonableness before granting approval.
6. Selling Estate Assets When Needed
If liquid funds are insufficient to cover debts and ongoing bills, the personal representative may sell estate property. Arkansas law requires either consent of heirs or a court order, depending on the nature of the asset. See Ark. Code Ann. § 28-41-301 et seq..
Helpful Hints
- Document every receipt and payment. Maintain clear records for court filings and beneficiary review.
- File the estate inventory and claim notices within 60 days of appointment to limit liability.
- Track due dates for mortgage, tax, and insurance to avoid penalties or property liens.
- Consult with the probate clerk early if you anticipate major estate sales or unusual expenses.
- Keep beneficiaries informed about significant disbursements and anticipated timelines.