subject: Understanding the Role of Estate Administrator [print this page] Understanding the Role of Estate Administrator
An estate administrator is in charge of settling a decedent's estate. Most people appoint their spouse, adult children, or siblings to this position, but Administrators can also be probate lawyers or estate planners.
When designating an estate administrator it's important to give careful thought. When a family member is appointed and family discord exists, it can cause additional grief for the person.
Unfortunately, it is commonplace for war to erupt over inheritance property. Administrators often have to act as mediators to prevent heirs from contesting the Will and further prolonging the probate process.
Other considerations should include if the person has time or desire to settle the estate. It can be emotionally challenging to commence with estate settlement proceedings soon after a loved one dies. Although this is a task that must be done, some people are better prepared than others at coping with death.
Settling probated estates can be a tiresome process. Personal representatives must file the Will and death certificate through probate court before commencing with settlement procedures. Some states require court confirmation to occur before proceedings begin, while other states do not intervene with settlement unless legal issues arise.
The probate process can settle quickly if decedents engaged in appropriate estate planning strategies. It can be prolonged for months if decedents die without a Will or if heirs contest the Will.
Probate administrators should be capable of working under pressure and good with finances and paperwork. They are responsible for securing inheritance assets and obtaining property appraisals. They must pay outstanding debts or negotiate with creditors to reduce balances owed.
Administrators are responsible for providing accounting records to verify all debts have been paid before inheritance gifts can be transferred to named beneficiaries. Additionally, they must file a final tax return for the decedent.
When financial portfolios are part of the estate, Administrators obtain date-of-death value forms from the investment firm. Forms are sent to the county tax assessor to validate taxes are current. The estate is responsible for bringing taxes current before monetary distributions can be made to beneficiaries.
When real estate secured by a mortgage note is involved, estate executors remit loan installments through the estate checking account until the property can be transferred to heirs.
If the estate does not have adequate funds the Administrator is responsible for overseeing the sale of the property to satisfy the loan. Failure to maintain payments could result in foreclosure or a forced sale.
These are a few duties required to settle probate estates. Each estate is unique and will have different needs. Administrators are compensated for performed duties. Fees are based on state probate laws and paid at an hourly rate, flat fee, or percentage of estate value.
When executing a last will and testament it is best to talk to the person who is being named as estate administrator. It can be helpful to appoint a primary and secondary executor so if the primary person is unable to fulfill duties, the second person can assume estate settlement duties to prevent prolonging the process.
