Executors and Administrators

Who is An Executor? 

An executor is a trusted individual or institution you designate in your will to handle your legal and financial affairs after your death. Their main responsibility is to carry out your wishes as expressed in your will. This includes managing and distributing your estate’s assets (property, possessions, money, etc.) in accordance with your wishes. 

Who is An Administrator? 

An administrator is a person designated by a court to oversee and distribute the estate of someone who has died intestate (without a valid will). They undertake the duties of an executor designated in a will, but instead of carrying out the testator’s instructions, they divide the estate in accordance with the applicable state or territory’s intestacy rules. 

General Roles of an Executor and Administrator 

• Find and Safeguard Your Assets: Such as real estate, bank accounts, investments, etc. 

• Handle Legal Issues: This may involve resolving claims against the estate or probate processes. 

• Pay Taxes and Debts: Prior to recipients receiving their inheritance, estate taxes and obligations are paid. 

• Manage and Allocate Assets: Assets are managed and distributed according to the Will (if present) or following intestacy laws. 

Roles and Duties of Executors 

• Finding the Will: The executor must locate the will and ensure it is the latest updated version. 

• Identifying Assets and Debts: This involves identifying and valuing all assets and liabilities of the estate. 

• Distributing the Estate: Once debts and taxes are paid, the executor distributes what’s left to the beneficiaries as instructed in the will. 

• Planning the Funeral: Executors often take responsibility for arranging the funeral in accordance with any known wishes of the deceased. 

• Applying for Probate: Probate is a legal process that confirms the will is valid and gives the executor the authority to manage the estate. 

• Lodging Tax Returns: The Executor needs to make sure all the deceased’s tax returns are filed and any taxes owed are paid. 

• Creating a Distribution Report: A detailed record of how the estate was handled and distributed is often required. 

Roles and Duties of an Administrator 

• Applying for Letters of Administration: This involves obtaining the legal authority to manage the deceased’s assets and belongings. 

• Finding Beneficiaries: The administrator needs to identify and locate those who are legally entitled to receive the estate, following the rules set out in law when there’s no will. 

• Securing and Managing Assets: Administrators must safeguard and manage the estate assets until they can be distributed. 

• Clearing Debts and Taxes: Similar to executors of a will, administrators must pay off any outstanding debts and taxes before distributing the estate. 

• Distributing the Estate: In the absence of a will, the estate is divided according to inheritance laws, not necessarily how the deceased might have preferred. 

Eligibility Criteria to be an Executor or Administrator 

• Adults Over 18: The appointee must be a legal adult. 

• Mentally Competent Individuals: They must be of a sound mind to handle the responsibilities involved. 

• Someone You Can Trust: It is generally advisable to appoint someone trustworthy and reliable. 

• Beneficiaries:  Beneficiary who inherit from the will can be the executor too. 

• Professional Executors: Sometimes a solicitor or a public trustee is appointed, especially for large or complicated estates. 

Imagine having a trusted person to ensure that your wishes are followed after you’re gone. That’s the role played by an executor or administrator in your estate plan. They:

• Ensure Your Wishes Are Met: An Executor will make sure that your assets are distributed exactly how you wanted in your Will. 

• Reduces Stress on Loved Ones: Having a designated person relieves your family from the burden of managing the estate during a difficult time. 

• Looks After What You Leave Behind: They protect your wealth and make sure debts and taxes are handled correctly, so your beneficiaries get what you intended them to have. 

• Efficient Administration: Executors and Administrators make sure everything gets done efficiently, minimising delays and complications. 

For these reasons, choosing the right executor or administrator is vital for smooth estate handling. They manage the deceased’s assets and distribute them according to the will or intestacy laws. Careful planning and legal advice can minimise disputes and ensure a hassle-free process.