Executor vs. Administrator: What's the Difference and Why It Matters
Executor vs. Administrator: What's the Difference and Why It Matters
If you are planning your estate or dealing with the estate of a loved one who has passed away, you may have come across the terms executor and administrator. These are two different roles that involve managing and distributing the estate of the deceased person. But what is the difference between them and why does it matter? In this article, we will explain what an executor and an administrator of a will do, how they are appointed, and what issues they may face.
An executor of a will is the person who is chosen by the deceased person to carry out their wishes and handle their estate. The executor is usually named in the will, which is a legal document that expresses how the deceased person wants their property and assets to be distributed after their death.Â
The executor has various duties and responsibilities for administering the estate, such as:
Applying for a grant of probate, which is the court order that confirms their authority to act as the executor
Collecting and valuing all the assets and debts of the estate
Paying any taxes, creditors, or expenses of the estate
Communicating and resolving any disputes with the beneficiaries or other parties who have an interest in the estate
Distributing the remaining assets according to the instructions in the will
The executor has to act in the best interest of the estate and the beneficiaries and follow all the legal and tax rules and regulations that apply to the estate administration. The executor may also hire professionals, such as lawyers or accountants, to help them with their tasks.
An administrator of a will is the person who is appointed by the probate court to handle the estate of someone who has died without a valid will or without naming an executor in their will. This may happen if the deceased person did not make a will at all, or if their will was lost, destroyed, or invalid for some reason. An administrator performs a similar role to an executor of a will but, where there are no instructions in a will, the administrators must distribute the estate of the deceased according to the rules laid down by statute.
An administrator cannot start acting on behalf of the estate until the court issues a grant of letters of administration, which is the document that confirms their appointment. The court usually appoints an administrator based on a priority list that depends on the relationship of the applicant to the deceased person. For example, in most states, the priority list is:
Spouse or domestic partner
Children
Parents
Siblings
Other relatives
The administrator has similar duties and responsibilities to an executor for administering the estate, such as:
Collecting and valuing all the assets and debts of the estate
Paying any taxes, creditors, or expenses of the estate
Communicating and resolving any disputes with the heirs or other parties who have an interest in the estate
Distributing the remaining assets according to the state laws or court orders
The administrator has to act in the best interest of the estate and the heirs and follow all the legal and tax rules and regulations that apply to the estate administration. The administrator may also hire professionals, such as lawyers or accountants, to help them with their tasks.
Both executors and administrators may face various challenges and complications when administering an estate, depending on whether there is a will or not. Some of the common issues that they may encounter are:
Finding and accessing all the assets and debts of the estate. The executor or administrator may have to search for and locate all the assets and debts of the deceased person, which may not be easy if they did not leave a clear record or inventory. They may also have to deal with any legal or practical obstacles that prevent them from accessing or transferring some assets, such as joint ownership, beneficiary designations, liens, or mortgages.
Balancing the interests and expectations of the beneficiaries or heirs. The executor or administrator has to treat all the beneficiaries or heirs fairly and equally and follow their wishes or rights. However, they may face pressure or demands from some beneficiaries or heirs who want more money or property than they are entitled to or who want to receive their share sooner than later. They may also have to deal with any disagreements or disputes among the beneficiaries or heirs over how the estate should be distributed.
Handling any legal or tax complications that arise during the estate administration. The executor or administrator has to comply with all the legal and tax rules and regulations that apply to the estate administration. They may have to deal with any legal challenges or lawsuits that are filed against the estate or against them as the executor or administrator. They may also have to deal with any tax audits or penalties that are imposed on the estate or on them as the executor or administrator.
Being an executor or an administrator of a will can be overwhelming and stressful for anyone who is not familiar with probate law and procedures. Fortunately, they do not have to do everything alone. They can get help from various sources, such as:
An estate planning attorney. An estate planning attorney can advise and assist an executor or an administrator with all aspects of the estate administration process. They can help them understand their rights and responsibilities as an executor or an administrator, prepare and file all the necessary documents with the probate court, handle any legal issues that arise during the estate administration, and represent them in any court proceedings.
A tax professional. A tax professional can help an executor or an administrator with all tax matters related to the estate administration. They can help them prepare and file all the required tax returns for the deceased and the estate, pay any taxes that are due, claim any deductions or credits that are available, and deal with any tax audits or penalties that are imposed on the estate or on them as the executor or administrator.
A financial planner. A financial planner can help an executor or an administrator with all financial aspects of the estate administration. They can help them value and appraise all the assets and debts of the estate, manage and invest the estate funds, sell or transfer any assets that need to be liquidated or distributed, and create a financial plan for the beneficiaries or heirs to achieve their goals and objectives.
A probate court clerk. A probate court clerk can help an executor or an administrator with all procedural matters related to the estate administration. They can help them understand the probate process and requirements, provide them with all the forms and instructions they need to file with the court, answer any questions they have about the status of the estate administration, and notify them of any deadlines or hearings they need to attend.
Being an executor or an administrator of a will is a big responsibility that requires a lot of time, effort, and skill. However, with proper planning and guidance, an executor or an administrator can successfully complete their duties and honor the wishes of the deceased.
Notes: Articles on this website are for information purposes only. They do not provide legal advice. The information might not reflect the latest updates.