Your buddy calls you up one day and states that he is composing his will. He asks if you will want to act as administrator. What should you say? Prior to you respond to that concern, you should understand about the responsibilities you will be responsible for if you choose to act as executor. Let’s discuss what you should consider.
According to Black’s law dictionary, an administrator is “A person selected by a testator to carry out the directions and demands in his will, and to get rid of the property according to his testamentary provisions after his decease.” The administrator is somebody named in the will by the decedent. After the decedent passes away, it is the duty of the executor to probate the decedent’s estate. At first the administrator will need to file the decedent’s will with the court, usually in the county where the decedent resided, and swear an oath in front of the judge swearing that he/she will carry out the duties of executor. If the will is correctly prepared, the administrator will be an “independent” executor which means she or he will then be complimentary to set about the duties of the executor without more interference from the court.
The administrator has 3 main duties:
Identify and collect the assets of the decedent’s estate.
Once the application is filed and the administrator has taken the oath, the court issues what are called “letters testamentary” to the administrator. These letters enable the executor to have access to all of the decedent’s property and records. The executor needs to then determine any savings account, brokerage accounts, retirement accounts, stock certificates, real estate, cars, and any other property that the decedent might have owned at the time of his death. The executor will have to offer an inventory of those properties to the court. Once the possessions are identified, the executor will need to gather and secure those properties. The administrator will need to close accounts in the name of the decedent and open accounts in the name of the estate.
Pay Debts and Taxes.
The executor will need to recognize not just the decedent’s assets, however likewise any financial obligations or taxes that the decedent might have owed at the time of death. Any recognized creditors need to be given notification of the probate proceeding. The executor has the duty to approve or deny any claims that are made to the estate. The administrator is accountable for paying any valid debts from the assets of the estate. The administrator is NOT personally responsible for any financial obligations of the deceased. If the debts
Distribute the Remaining Assets.
If there are any remaining properties after the debts have been paid, the administrator has the responsibility of dispersing the staying possessions according to the decedent’s will. If the decedent did not have a will, then the properties need to be dispersed according to the provisions of the Texas Probate Code. It is generally an excellent idea for the executor to obtain receipts from the successors that receive property, and submit those receipts with the court revealing that the executor has actually fulfilled his or her obligations.
The quantity of time and effort needed of the executor can vary depending upon the intricacy of the estate and the relationships amongst the successors. All costs of probate typically come out of the estate. Expenditures can include filing charges, attorney charges, appraisals, and prospective lawsuits. The administrator is never personally responsible for costs and expenses. In Texas, the executor can be entitled to affordable compensation for his/her time unless the decedent specifically denied payment in the will.
An administrator has fiduciary responsibilities to act for the advantage of the heirs, and likewise has duties owed to the court. An administrator can be held responsible if she or he acts dishonestly or primarily tries to improve himself or herself during probate proceedings.
The response you will offer to your friend who wants you to act as executor depends on you. No one can require you to assume the responsibilities of an administrator. If you do not desire the obligation, it is best for you to inform your friend ahead of time.