ARTICLE
9 September 2024

What To Expect As An Estate Administrator

When someone passes away, everything they owned becomes part of their estate. Estate administration is the process of managing and distributing these assets according to the person's Will or, if there is not one...
United Kingdom Family and Matrimonial

Managing an estate after a loved one's passing can be challenging. The role of the Administrator of an estate involves handling assets, settling debts, and distributing the estate.

The role of the Administrator when managing an estate administration

When someone passes away, everything they owned becomes part of their estate. Estate administration is the process of managing and distributing these assets according to the person's Will or, if there is not one, according to statutory rules, known as the 'intestacy rules'.

If there is a Will, it usually names someone to manage this process, called the executor. If there is no Will, then the order of entitlement to deal with the estate is detailed in the intestacy rules. This person is responsible for gathering the deceased's assets, paying off any debts or taxes, and then distributing what is left to the beneficiaries.

The first steps involve obtaining the death certificate and locating the Will. The executor must then apply for a Grant of Probate, which gives them the legal authority to sell any assets and cash in any monies within the estate. If there is no Will, the person who is entitled to deal with the estate, also known as the administrator, must apply for Letters of Administration instead.

The executor or administrator inventories everything the deceased owned—such as property, bank accounts, and personal items. They also need to assess the value of the estate. Before distributing anything to the beneficiaries, the executor must use the estate's funds to pay off any outstanding debts and taxes.

Once these obligations are settled, the remaining assets can be distributed to the beneficiaries. While this can sometimes be straightforward, it can also be challenging, especially if there are family disagreements or complicated assets.

What is the difference between an executor and administrator in estate administration?

An executor obtains their authority to deal with the estate from the Will, whereas an administrator gets their authority to deal with the estate upon issue of the Grant. Although there is a difference in terminology, their roles are largely the same.

The primary power that an executor/administrator has is to distribute the deceased's estate in accordance with their Will or the intestacy rules, following the payment of any debts, tax and liabilities. They are responsible for collecting in values of all the assets and applying for a Grant if it is required. They will also be able to close the accounts and sell any investments or property on behalf of the estate. It is prudent for the executors/administrators to prepare estate accounts which details what has come in and out of the estate to show all the transactions that have taken place during the estate administration.

Can next of kin withdraw money from a deceased person's bank account?

When a person dies, their bank accounts are usually frozen as soon as the bank has been notified of their death. The only payments which can be made out of the account until the bank has been provided with a Grant is for funeral expenses or inheritance tax payments.

If the account balance is small, the banks may release the monies in the account on production of a death certificate and indemnity form completed by the executor named in the Will or the person entitled to deal with the estate under the intestacy rules.

Estate administration ensures that a deceased person's estate is managed and distributed correctly. Whether you are an executor or administrator, understanding your responsibilities and powers is essential. By following the legal steps and managing the estate with care, you can navigate this process smoothly and honour your loved one's wishes.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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