Explanation of the duties of executors and administrators
The primary role of the personal representative is usually to make funeral arrangements. In the absence of a valid Will, the role of the Administrator depends on obtaining authorisation for Letters of Administration for the estate. Until then, the powers of the estate will be vested in the State Trustee until such time as this authorisation is obtained. Once this authority is obtained, the duties of the administrator are similar to those of an executor.
Although the executor's primary duties begin after probate is granted, they also have certain powers before it is granted. Beneficiaries can only take control of the deceased's property once the executor has prepared the estate for distribution. Until then, beneficiaries can only take legal action against the executor if they suspect mismanagement. Distribution of the estate need not be immediate, but careful and prompt administration is expected. Twelve months after death is generally considered an acceptable period for the administration of an estate.
Probate or Letters of Administration ensure that beneficiaries are able to view assets. For example, a bank will only provide account viewing authority to an executor after obtaining probate. This authorisation also provides protection for the beneficiaries or immediate family members of the deceased.
The primary role of the executor or administrator is to collect the deceased's assets, settle outstanding debts (including tax liabilities) and then distribute the remaining assets in accordance with the will or statutory guidance. It is vital that the administration of the estate is documented in detail.
Overview of the powers of the executor
Even before obtaining probate, executors can pay funeral expenses and, if feasible, deal with certain debts to avoid additional interest accruing. To protect the estate, they can also liquidate assets, deal with arrears and oversee land ownership (excluding sales).
Dealing with implementer challenges
There are several challenges that may arise in the process of estate management, for example:
No executor appointed: If there is no executor appointed, or if they die or divorce the testator, the court-appointed administration usually goes to the primary beneficiaries. This process, known as "Letters of Administration with Wills", ensures that the wishes of the deceased are fulfilled.
Reluctant executors: Executors can refuse their appointment. If they relinquish their role and there is no alternative executor, the situation is like a will with no named executor.
Deceased Executors: If the sole executor dies before the testator or before the commencement of the probate process, a "Letter of Administration with Will" is required. To avoid complications, it is recommended that multiple executors be appointed or that the will be amended after the death of the executor.
Minor executors: If the sole executor is underage, the court may appoint a guardian or another suitable person for the minor until the executor reaches the age of 18.
Trustee: different from executor Often, a person is both executor and trustee, but they are different roles. The role of executor culminates when assets are collected, debts are paid, and the estate is ready for distribution. When the will outlines successive duties, such as caring for young children, those duties are carried out as trustees. If you would like us to assist you, pleaseclick hereLearn more, orContact Usof the office.