In wills, testator specifies a person {executor}| to carry out will. People must agree to serve.
qualification
The court qualifies executor and issues a notice {letters testamentary}, stating that executor can administer estate.
administrator
If there is no will, court appoints a qualified person {administrator, estate} to administer estate. States have a relative sequence to appoint as administrator, typically spouse, children, grandchildren, father, mother, brothers, sisters, and next of kin. Administrator receives authorization {letters of administration} {administration letters}.
If executor has died or does not qualify under state law, court names an administrator {administrator cum testamento annexo}, who executes will just like executor. Court can appoint an administrator {administrator de bonis non cum testamento annexo} to complete duties of an incapacitated executor.
actions
Administrator is legal estate representative and is under oath to perform duties well. If will does not reject need for bond, administrator must post bond, often personal-property amount plus two years rent on real property, to protect estate creditors from mistakes. Administrator can pay debts and minor expenses, make charitable contributions, prescribe fund management for minor children, and allow trustee not to have to annually account for fund's principal and interest, as state usually requires. Administrator makes estate inventory, obtains current beneficiary or heirs-at-law addresses, and finds minors. Administrator gathers papers not in safety deposit box, including several copies of death certificate from Department of Health and Vital Statistics or County Clerk. Administrator attaches these to notices sent to life-insurance companies. Both administrator and attorney get fees, by percentages of estate value. Court must approve fees.
estate inventory
Most states require administrator to file inventory appraisals within 60 to 90 days of appointment. Executor inventories stocks, bonds, and cash, along with other property, usually with witnesses present. He consults broker for deceased's account contents, especially for stocks and bonds in accounts {street account} owned by individual but registered in brokerage-house names.
insurance proceeds
Wills can exclude proceeds {insurance proceeds} from personal and group life insurance from probate, if policy names a beneficiary, unless beneficiary is testator's estate. Such beneficiary can get benefits right away. Proceeds are still part of taxable estate if deceased retained rights to change beneficiaries, to borrow against policy, to assign or regain policy ownership, to change from term insurance to permanent, or to select from policy options {ownership incidents} {incidents of ownership}. If person gave these incidents to another person, estate excludes these proceeds. Wills can exclude group policies only if group policy and state law allow not claiming all ownership incidents, and if policy assignment to another person is irrevocable.
vehicles
Executor has vehicles appraised and checks insurance, to see that it covers surviving drivers. Administrator should sell or transfer all vehicles, unless transfer requires court approval, estate cannot pay debts, estate is insolvent, or someone contests estate.
estate assets
Administrator draws up asset-distribution schedule for court approval, in accordance with will and state law. He then distributes estate itself and obtains signed receipts, with two witnesses present. Then he gives full report {final accounting} to the court, which approves report and discharges administrator.
estate debt
Administrator files claims for debts owed to estate, going to court if necessary.
estate finances
Administrator has to pay debts, collect credits, and distribute estate to heirs. Estate management to asset distribution requires good business records. Administrator opens checking account in estate name immediately, to pay debts and hold incoming money from savings, real estate, bonds, and debts. Administrator files income tax return, which can be joint return, for year up until day of death. Administrator gives allowance to spouse and minor children from checking account, under state laws, which typically set maximum and minimum, with court authorizing sum after petition. Administrator operates businesses, under court supervision, if decedent was sole owner. If business was partnership, partnership dissolves. Administrator supervises stock shares, handles investments, and handles real-estate transactions.
safety deposit box
Administrator inventories box, by strict legal procedure, with state tax agents or others present, to attest to contents. If box has joint ownership, opening box requires survivor's consent.
Insurance policies name a person {beneficiary}| to receive funds. Federal marital deduction permits deduction of up to half of adjusted gross estate, if it goes to spouse. This deduction only applies to estate part that is not community property. Only property at full spouse disposal qualifies. This law equalizes other states with states that have community property.
Wills can designate a person {guardian}| to care for children, if they meet standards of state law for guardians.
Bequests can be left to people {legatee}.
People {notary public}| can have authorization to witness and seal documents for state.
Court judges {surrogate, law}| can administer estates.
Will makers {testator}| must be 18 years old and of sound mind. Wills must be in writing. Testators must sign wills. Two or three disinterested witnesses must see signing, sign will themselves, and attest to seeing it signed.
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Date Modified: 2022.0225