An estate administrator manages a deceased person’s affairs during probate. Probate is the legal process of distributing assets and paying debts on behalf of a person who has died. Sometimes also called a personal representative, an estate administrator is the appointed legal representative of the decedent.
Who Determines the Estate Administrator?
If the will doesn’t name an executor, the probate court appoints an estate administrator to manage the decedent’s affairs. State law determines the order of priority for appointment, which may include the surviving spouse, adult children, grandchildren, siblings, or other close family members.
Not all people are eligible for appointment. For example, states may prohibit minors, residents of foreign countries, mentally incompetent individuals, and those convicted of certain crimes from acting as administrators.
After appointing an estate administrator, the court issues letters of administration. These legal documents prove the administrator’s authority to access, manage, and distribute the decedent’s assets. It may take six to eight weeks to receive letters of administration.
Are Estate Administrators and Executors the Same?
There many names for the person who administers an estate, but they all serve mostly the same duties. The main difference between an estate administrator and an executor is how they were appointed to their role. There may also be differences in who legally qualifies for each role and the powers they have.
- Executor: Typically named in the will, an executor distributes property according to the decedent’s wishes. They typically have more power than estate administrators because the will may give them additional authority.
- Estate administrator: If a will does not name an executor, a court will appoint an estate administrator. The estate administrator distributes property according to state intestacy laws. They may also have expanded powers if all living family members and other descendants formally agree.
These terms are also common in probate cases:
- Personal representative: This is the appointed representative of a deceased person and includes both executors and estate administrators.
- Fiduciary: Fiduciaries have legal obligations to act in someone else’s best interests. A probate court may refer to an estate administrator as the “fiduciary.”
- Trustee: A trustee oversees the administration of a trust. A trustee is also a fiduciary.
What Responsibilities Do Estate Administrators Have?
An estate administrator’s responsibility is to wrap up the deceased person’s affairs. Probate typically follows a set pattern to ensure the administrator meets legal requirements.
Estate administrator responsibilities commonly include the following:
Notifying Beneficiaries and Creditors
Estate administrators must notify family members and heirs of the probate proceedings. They must also notify creditors by sending them mail directly or publishing a notice in the newspaper. The amount of time creditors have to file a claim against the estate varies by state.
Assembling Assets and Documentation
Next, estate administrators must identify, assemble, safeguard, and catalog the decedent’s assets. This can include physical assets and documentation such as real estate deeds, vehicle titles, and bank account information. They must also assign a value to the assets, hiring professional appraisers when necessary.
Settling Outstanding Debts
An important responsibility of the estate administrator is identifying and paying all outstanding debts. This can include funeral expenses, last medical costs, mortgages, and valid creditor claims. It also requires them to file and pay federal and state taxes. Payment for debts comes from the estate funds. The administrator may need to sell estate assets to settle outstanding liabilities.
Distributing Assets
After paying all debts, the estate administrator distributes the remaining assets to heirs. When there is no will, state laws of intestate succession dictate the beneficiaries. Typically, assets go to close family members in order of their relationship with the decedent, with children and spouses first, parents and siblings next, and other relatives after that.
Closing the Estate
After fulfilling their duties, estate administrators petition the court to officially close the estate.
Can Estate Administrators Receive Compensation?
Estate administrators may receive compensation for their work. Wills often specify payment for executors. When there is no will, state law determines compensation.
Some states have statutory payment schedules for estate administration, which may be a flat fee or a percentage of the estate value. Most states specify only that the administrator’s fees must be “reasonable.” Others allow “reasonable compensation” within set limits or guidelines.
How Long Do Estate Administrators Take To Distribute Funds?
Estate administrators distribute funds at the end of the probate process, after paying creditors, taxes, and other outstanding debts. The timeline varies by the size and complexity of the estate, the thoroughness of estate planning, and the cooperation among heirs.
Simple, uncontested estates may conclude probate in just a few months while more complex cases may take several years.
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