5 Keys to Understanding Your Role as Executor or Administrator

On paper, becoming an executor or administrator of someone’s estate means you’ve been entrusted to take on an enormous responsibility. Some may consider it an honor… but before you accept this relatively unenviable task, it’s best to understand the key factors of what the job itself entails.

Key Factor #1 – Understanding the Difference Between Executor and Administrator

The executor and administrator basically have the same role to play—assess, safeguard, and distribute the decedent’s assets.

The main difference: an executor is named in the will and must adhere to the wishes set forth in the will while an administrator is appointed by the court in the absence of a will or when there is no executor named.

(From here on out, both the executor and administrator will be referred to as an executor.)

Key Factor #2 – Understanding the Workload

Whether the estate is big or small, the executor is responsible for safeguarding and distributing assets, notifying creditors and other interested parties, paying debts and taxes, filing court documents, keeping accurate records, and defending the estate against legal claims and beneficiary disputes. And that’s just the tip of the iceberg.

Handling these responsibilities is time-consuming as well. A simple estate with absolutely no conflicts may take up to a year to resolve while more complicated or larger estates take two or more years. If there’s any consolation, the executor can be compensated based on either an amount designated in the will or by the state in accordance with applicable laws.

Key Factor #3 – Understanding The Challenges

The executor will face a slew of challenges while administering the decedent’s wishes. This includes navigating complex legal issues, tackling disputes with creditors, refereeing conflicts among family members, locating missing assets (or heirs), and keeping heirs from stealing heirlooms prior to beginning probate.

Key Factor #4 – Understanding the Emotional Toll

With the heavy workload and slew of challenges inherit in probate, this process can easily become emotionally taxing. Prioritizing self-care and setting realistic expectations are a must so you can properly grieve.

Key Factor #5 – Understanding Limitations/The Fiduciary Duty

Executors are limited by their fiduciary duty to the estate in what they can and cannot do. First and foremost, executors are obligated to act in the best interest of the estate and defend its intent in all disputes. Once appointed, executors also become liable for any misappropriation of assets or blatant misconduct.

In a nutshell, the executor’s fiduciary responsibility keeps them from:

• ignoring provisions of the will.
• selling property for less than fair market value.
• prioritizing their own interest over that of the estate.
• paying themselves more than the allocated/lawful amount.
• using estate funds for personal gain.

And, as with any law, ignorance does not excuse the executor from a breach of these duties.

Remember, even if named as executor in the will, you may request to be “passed over” before probate is granted. For more information and to help you through the complicated process of probate, check out our Complete Executor Duties Checklist.

Tags: administrator, executor, Fiduciary, Probate, Probate Fiduciary, Trusts, Wills
Posted in Estate Planning - Wills, Trusts, and Probate, Executor, Probate Code | 1 Comment »