If you are appointed to be the independent administrator of an estate, you may not need the court to watch over you, but you should make sure you know your legal rights and obligations. Your attorney can help you as you handle the estate, so that you are less likely to make costly mistakes that could impact you negatively in the future.
Dependent Administration Probate courts do not have much oversight over cases being administered independently, so the process can be completed more quickly and affordably. Independent administrators can sell property, pay debts, close accounts and take other actions on behalf of the estate without having to ask the court for permission first.
Any adult can act as the administrator or executor, unless he has been found to be unsuitable under state law or by the probate judge. Heather Frances has been writing professionally since 2005.
In Texas, the court can grant independent administration if: The will did not specify independent administration, but all beneficiaries agree to an independent executor.
An administrator is an individual appointed to dispose of the assets of the estate, manage any creditors, and pay fees out of the estate for any required attorneys, appraisers or accountants.
An administrator is someone who is responsible for dealing with an estate under certain circumstances, for example, if there is no will or the named executors aren't willing to act. An administrator has to apply for letters of administration before they can deal with an estate.
An independent administration is a non-court administration. After a person has applied for letters testamentary and been qualified as independent executor by the court, the executor files an inventory of the estate's assets and their appraised value, and a list of claims of the estate.
An executor of an estate is an individual appointed to administer the last will and testament of a deceased person. The executor's main duty is to carry out the instructions to manage the affairs and wishes of the deceased.
(1) "Independent administration" means the administration of an estate in accordance with the provisions of this Chapter. (2) "Independent administrator" means the succession representative authorized by the court to administer a succession in accordance with the provisions of this Chapter.
It is an administrator's job to gather all of the assets of the estate, pay the debts of the estate, and distribute the assets to the beneficiaries in accordance with the will or the laws of intestate succession.
Unless limited by the terms of a will, an independent executor, in addition to any power of sale of estate property given in the will, and an independent administrator have the same power of sale for the same purposes as a personal representative has in a supervised administration, but without the requirement of court ...
An executor is a person appointed under a Will and who will be seeking to obtain a Grant of Probate. An administrator is a person who is appointed in accordance with the rules of intestacy when there is no Will.
An Administrator of an Estate is a person who has been appointed by the Court to deal with the Estate of a deceased person. This could be because the deceased didn't leave a Will, because there was a Will but there was no appointment of Executors, or because the Executors named are unable or unwilling to act.
Can an Executor Make a Decision about “Who gets What”? No. The Executor cannot decide who gets what . The executor, among other duties, is responsible for the distribution of your assets in accordance with the instructions contained in the will.
The executor can sell property without getting all of the beneficiaries to approve. However, notice will be sent to all the beneficiaries so that they know of the sale but they don't have to approve of the sale.
The parents will inherit the deceased person's separate property. If both parents are alive, they will inherit equally. Otherwise, the property will pass to the surviving parent. No surviving descendants, parents, siblings, descendants of siblings, or spouse.
It allows the Executor to sell the property immediately without advertising and without obtaining Court approval. Basically, the independent executor has all of the rights, powers, authority and privileges of other succession representatives but without the necessity of obtaining court approval to exercise them.
One of the key differences between being an independent administrator or dependent executor is the overall level of court supervision that is required. In a dependent administration, the court closely monitors the executor’s actions, so that it can let the heirs and beneficiaries ...
The benefit of independent administration is that it’s not nearly as time-consuming as dependent administration. Additionally, the executor doesn’t need to have preapproval to complete transactions, so they are more efficient.
It is much easier to be accused of breaching fiduciary duties or making mistakes as an independent administrator, because there isn’t the intensive oversight of the court to monitor and catch mistakes.
If you are appointed to be the independent administrator of an estate, you may not need the court to watch over you, but you should make sure you know your legal rights and obligations.
In a dependent administration, the executor must get court approval for most actions and report regularly to the probate judge, while in an independent administration, the executor is given more autonomy to carry out their duties without the need to report their actions to the court.
Dependent administration provides a higher level of scrutiny that helps heirs and beneficiaries of the estate know when the executor has properly completed certain duties during probate.
Dependent administration is often necessary if there are disputes among beneficiaries or if court oversight is otherwise required during probate. If the estate has large debts accrued, the stricter requirements for creditors may make dependent administration a better option for managing estate finances.
After a will is filed for probate and an independent executor is assigned, the only involvement of the court is for the executor to file an inventory, appraisement and list of claims which contain all of the assets of an estate.
In addition, probate courts require an executor to have the assistance of an attorney throughout the process due to the increase in legal documentation and court hearings required of a dependent administration.
Independent administration is often far less time consuming and costly than dependent administration, as the executor is not closely supervised by the court and does not need preapproval for transactions related to the estate.
This is especially true if an estate is being monitored by the court, as the administrator will be unable to act autonomously without the approval of the court at every step of the way. This can make probate an even more stressful ordeal than it already is.
An administrator for an estate is appointed based on a list of family members, in a particular order. The first choice is the spouse of the decedent, then the children of the decedent if no spouse exists. Next in line is the decedent's mother or father, then siblings if there are no surviving parents, and grandparents if no other family exists.
An estate is a legal entity set up to hold the assets, rights, or obligations of a deceased individual. Each estate has one or more people appointed to act on its behalf. An administrator is an individual appointed to dispose of the assets of the estate, manage any creditors, and pay fees out of the estate for any required attorneys, appraisers, ...
When a deceased individual leaves a will behind, his or her estate goes through the probate process. A surrogate's court or probate court reviews and approves the will, and then disposes of the estate following the directions contained in the will. When a will is not present, an administrator must be selected to oversee and manage ...
When a will is not present, an administrator must be selected to oversee and manage the final financial obligations of the deceased, making sure all assets and liabilities are properly disposed of or paid.
The administrator receives a commission from the estate as compensation. The amount is derived using a sliding scale based on the estate's size, applied to a percentage of the total estate.
An administrator will take title legally on the estate's assets, and has a legal responsibility to file all tax returns and pay all of the related taxes. This includes state and federal estate tax and income returns, payment of estate death taxes and inheritance taxes, and the deceased's final federal and state income tax returns.
Otherwise, your personal property may not be divided the way you wish. Instead, your estate will be handled based on the law according to the state where you live. Your will also allows you to appoint someone you choose to handle your estate after death.
The Administrator of an Estate is the person in charge of compiling assets and managing the Estate through probate court. An Administrator, or personal representative, is typically named within the Estate Plan. If the deceased did not have a Will or Estate Plan, the Administrator will be nominated by the court. This responsibility will typically fall on a surviving spouse or the closest living relative (also called the next of kin).
If you are wondering how to be appointed as the Administrator of Estate, the first step is to cite your state’s Intestate Succession Laws. This will help you determine who will serve, though the responsibility generally falls on the surviving spouse. Once you have determined who has priority to serve , file a petition with the county court to initiate probate.
The difference in an Executor and Administrator of Estate is how the two roles are established. An Executor is named within a Last Will and Testament, while the Administrator of Estate is typically appointed if someone dies without a Will. Both the Executor and Administrator of Estate must report to probate court, though Executors generally have more power when handling assets. The reason for this is because the Executor is typically granted additional responsibilities within a Will, while an Administrator of Estate is guided by state law. Overall, the roles and responsibilities of each position are quite similar. Read our guide on the responsibilities of an Executorto learn more.
The exact role of the Administrator of an Estate will vary depending on the size of the Estate, and whether or not there was an Estate Plan. That being said, here is an outline of typical Administrator of Estate responsibilities: 1 Gather the belongings, assets, financial accounts of the deceased 2 Take note of any outstanding debts or bills 3 File an inventory of all assets and debts with the Court 4 Issue a Notice to Debtors and Creditors 5 Request life insurance policies payable to the Estate 6 Settle any debts and collect any money owed to the deceased 7 File state and federal tax returns for the Estate, as well as any gift tax returns that are needed 8 Communicate with the heirs and beneficiaries about the Estate 9 Distribute assets and property according to the Estate Plan or state law
If you want to avoid placing this responsibility on a loved one, the best way to move forward is to create an Estate Plan for yourself (and encourage relatives to do the same). At Trust & Will, we aim to make this process as simple as possible -- eliminating the need for further legal help or guidance. By writing a comprehensive Estate Plan with the help of our team, you can help prevent any future difficulties.
In most cases, the Administrator of Estate will be compensated for their duties -- as managing an Estate through probate can be a time-consuming process. Often, the deceased will opt to leave money or other assets to the Administrator within their Will. If there is no Will, the state will decide how to compensate the Administrator (usually with a percentage of the Estate).
File an inventory of all assets and debts with the Court
The administrator (also known as the fiduciary) is a key player in the estate’s ability to cross the finish line ie settle the estate. The fiduciary must have the ability to understand the process, or at the least, follow the instructions and guidance of her estate lawyer.
It depends, among other factors, on the size of the estate, type of assets, the beneficiaries involved, and mainly the appointed administrator. The administrator (also known as the fiduciary) is a key player in the estate’s ability to cross the finish line ie settle the estate. The fiduciary must have the ability to understand the process, or at the least, follow the instructions and guidance of her estate lawyer. Ignorance of the law or reliance on bad legal advice is not an excusable defense in New York Surrogate’s Court. Lack of understanding and lack of communication from a fiduciary is the most frequent complaint from heirs. But without past experience or a guiding legal hand, how do you effectively administer an estate? One easy way to alleviate conflict and disputes is by reading the following tips below.
Depending on the county and the judge assigned to the estate, a fiduciary’s letters of administration may contain language such as: ADMINISTRATOR IS HEREBY RESTAINED FROM SELLING, TRANSFERRING, MORTGAGING OR IN ANY MANNER ENCUMBERING THE REAL PROPERTY OF THE DECEASED EXCEPT FURTHER ORDER FROM THIS COURT.
The basic objective for a fiduciary when selling real estate is to sell high. Real estate should be sold at fair market value (FMV), or higher. Of course, there may be circumstances that warrant a discounted sale, such as an impending foreclosure sale, or the interested parties all agree to sell for less. After letters of administration issue, assuming the property is vacant, the next step is to retain a reliable real estate broker to list the home on the market. Before listing and entering into contract, a broker will provide the fiduciary with recent sales comparisons in the home’s vicinity which should serve as a guideline for the initial asking price. Listing the property way above FMV may be an indication of the fiduciary’s bad faith or inability to understand the process. Why bad faith? The fiduciary may be trying to delay the sale because she or a family member lives in the home, wants to be spiteful to the other heirs, or is just plain greedy.
The fiduciary manages the estate bank account until the funds are fully distributed and the estate is settled. When all affairs are finalized, the account is closed to avoid monthly banking fees.
Ana initially pays a court filing fee of $625.00 based on the fee schedule (over $250,000 but less than $500,000). If at filing of the Inventory of Assets, the estate is valued at more than $500,000, an additional filing fee of $625.00 must be paid. If you overpaid on the filing fee, you can apply for a refund of the balance.
Knowing who to list as an heir can be tricky business. For example, a child of a predeceased heir commonly inherits under the estate. If decedent had three daughters in total, in which one died before him leaving children of her own, the decedent’s two living children and the children of the deceased daughter (his grandchildren) are his heirs-at-law and inherit from his estate. Sounds simple, but for most people and sometimes lawyers, it isn’t. Sometimes a petitioner will leave out an heir intentionally in order to inherit a bigger share. This often leads to their removal by the court and thousands of dollars spent on legal fees and penalties. Keep it truthful. Administering an estate is hard enough. Don’t complicate it by trying to beat the system.
You might decide to use an attorney because your case might be slightly complicated or the estate is not in your hometown or state or you simply have no time on your hands. Financial planners, CPA’s, local realtors, contractors and estate planning firms are experts in their perspective field and can give you specialized knowledge which pays off in both the short run and long term.
Once executors get to the end of an estate, oftentimes they just distribute the money without ever formally closing the estate. Before distributing assets, you can go to a court and get the okay from a judge, or if you want to skip that piece of the probate process and your family is all in agreement, you can form a family settlement. This gives everyone records of the estate administration so that they know where assets went and how much expenses were, so that the family can agree on these and not hold the executor liable for any mistakes. By documenting everything among family members, if later debt pops up, everybody agrees to give the money back and the executor has managed their liability. This must be prepared by an attorney and is a very powerful tool in protecting the executor’s liability
To put it simply, probate is the process the probate court uses to make sure the deceased person’s creditors are paid through estate settlement and that anything left goes to the deceased’s beneficiaries.
Once you have been approved as administrator or executor of the estate, you can begin soliciting offers on the real estate. In other words, parallel to handling everything else, you can list with a realtor, get advice, solicit offers and even go into escrow. Escrow will not close until you have acquired letters testamentary/letters of administration. As long as your buyers are aware of this, you will do fine. Be sure to use a realtor that understands probate.
E.g. you might have an attorney friend that practices business litigation that will help you with probate. This is where you must be cautious and make sure you pick your team of professional experts that will get the job done because this is all they do. Similarly, you might have a realtor friend that specializes in a certain area of town or other type of real estate that wants to list the real estate for you. Again, having a realtor with probate experience that specializes in the area of your real estate location will benefit you and ensure you get the most out of it.
A good realtor that understands your probate needs can also help you maintain the property by using people in his/her network. You must take exclusive control of an estate’s cash. Do not permit another person to have access to an ATM, debit or credit card, bank account.
If the deceased’s estate has debts or the deceased owned real estate some form of probate estate administration will be needed. Preparing an accurate inventory of assets , which should only reflect assets that have actually been collected and placed under the control of the administrator or executor, is important. One must account for everything and understand where and how things will pass to the deceased’s heirs either under the Will or by intestate succession. For example, does the estate include jewelry, collections or family heirlooms to be passed on? Are there oil, gas or mineral rights or royalties that need to be disposed of?