Paralegal Advanced Competency Exam (PACE) Practice Exam

Which of the following accurately describes a personal representative in relation to a bond?

1. A person awarded custody of a minor's estate

2. A person who administers an estate with legal duties

3. A financial adviser managing trust accounts

4. A legal entity that represents a corporation

The correct answer is: A person who administers an estate with legal duties

The correct description of a personal representative in relation to a bond is that they are a person who administers an estate with legal duties. In the context of estate administration, a personal representative, often referred to as an executor or administrator, is responsible for managing the deceased person's estate. This includes handling the decedent's debts, distributing the assets to beneficiaries, and ensuring that the estate is administered according to the law. When a personal representative is appointed by the court, they may be required to post a bond. This bond serves as a financial guarantee that they will carry out their duties faithfully and in accordance with the law. If the personal representative fails to fulfill their obligations, the bond can be used to compensate the estate or beneficiaries for any losses incurred as a result of misconduct or neglect. In contrast, the other options describe roles that do not align with the specific duties and legal responsibilities associated with personal representatives. Custody of a minor's estate typically implies guardianship, which does not encompass the broader legal duties of managing an estate. A financial adviser managing trust accounts focuses on investment and financial management rather than the administrative aspects of estate management. A legal entity that represents a corporation pertains to corporate law and governance, with no relation to estate administration or personal