When someone passes away, their property typically needs to go through a legal process called probate. An estate administrator (sometimes called a personal representative) is the individual appointed to manage this process—collecting assets, paying debts, and distributing what’s left to heirs. Below is a simple guide to what estate administrators do, how they’re chosen, and what responsibilities they carry.
Who Appoints an Estate Administrator?
If a will exists and names an executor, that person usually becomes the estate’s representative. But if no one is named—or if there is no will at all—the probate court picks someone to fill that role, calling them an administrator. State laws list which relatives have priority, often starting with a surviving spouse or adult children. However, certain people cannot serve, such as minors, those with specific criminal convictions, or individuals who live outside the country.
Once appointed, the court issues letters of administration confirming the administrator’s authority to act on behalf of the estate. This paperwork is important for tasks like closing bank accounts or selling property.
Administrator vs. Executor
Though both handle an estate, the key difference lies in how they’re chosen:
- Executor: Named in the will, typically with instructions from the deceased. An executor’s authority can include distributing assets exactly as outlined in the will.
- Estate Administrator: Appointed by a court if there’s no will or the will fails to name someone. They follow state intestacy rules (when no valid will exists) or standard guidelines if the will is silent on certain matters.
Both roles are often referred to as personal representatives. They serve as fiduciaries, meaning they must act in the best interest of the estate, avoiding conflicts of interest and keeping accurate records.
Duties of an Estate Administrator
-
Notify Beneficiaries and Creditors
The administrator formally informs heirs or beneficiaries about the probate proceedings and also notifies creditors—either by direct mail or a newspaper notice—so they can submit claims.
-
Gather and Safeguard Assets
Locating bank accounts, real estate deeds, investments, or valuables is a key part of the job. The administrator might hire appraisers to determine values for these items. During probate, assets must be protected (stored, insured, maintained) until distribution.
-
Pay Off Debts and Taxes
The administrator handles debts left behind by the deceased—like final medical bills, credit cards, mortgages, and any owed taxes. They may need to sell property if the estate lacks enough cash to settle obligations.
-
Distribute Remaining Property
With debts cleared, the estate’s leftovers go to heirs. If no will exists, state intestacy laws decide who inherits first (usually spouse, then children, and so on). If the will is valid, its instructions direct the process.
-
Close the Estate
Once everything is done, the administrator petitions the court to approve a final accounting, officially ending the estate. This step ensures beneficiaries and creditors can’t bring new claims related to the estate.
Compensation for Administrators
Many states permit administrators to collect a fee, often a set percentage of the estate’s worth or an amount considered “reasonable.” If a will exists, it might specify the rate or method of compensation. Since managing an estate can be time-consuming, it’s common for administrators to receive payment, unless they choose to waive it.
How Long Until Funds Are Distributed?
Final distribution usually occurs at the end of probate. If the estate is straightforward—few assets, few debts—it might wrap up in a few months. Larger or disputed estates can take years. During this window, heirs typically receive nothing until the administrator settles all debts and obtains court approval to distribute property.
Need Money Sooner?
If you’re waiting on an inheritance but have bills that can’t wait, you might look into probate funding from a company like Rockpoint Probate Funding. They can advance part of your inheritance to help with expenses, often within a day. When the estate is finally settled, the funding provider is repaid from the share you’d normally receive. If you’re curious, call (888) 263-8588 to learn more.
By knowing how an estate administrator is picked and what responsibilities come with the job, you can better understand where your inheritance stands. Whether you’re an administrator navigating these duties or an heir wondering when probate will wrap up, clarity on the process helps everyone manage expectations and handle financial matters responsibly.
