Should You Be An Estate Administrator?

Estate administrators are certified fiduciaries who have been approved by the court to manage an estate's affairs and distribute assets.

This is one of many articles on the subject: I'm not a legal expert, but this is my opinion, based on my own experience. If you require legal advice, consult a lawyer.

Certified fiduciaries are required to obtain fiduciary certificate, which is an assessment process that ensures the individual knows the laws and rules of their state, how to administer a will, and the rules of probate court.

The state regulates certified fiduciaries. A state may revoke a certification if a person fails to perform their duties. Certified fiduciaries are required to submit to background checks.

Sometimes, the probate courts will allow family members to administer an estate. However, it is best to retain the services a certified fiduciary.

A certified fiduciary receives payment from the estate just as anyone would if they were to become the administrator of the estate. A certified fiduciary is a receiver who works for the court and not the heirs.

The work of a certified fiduciary is much more efficient. They have already arranged for their bond, and they can call their attorney at any time. The estate pays for any necessary attorney fees. You may need to advance a certified fiduciary's costs until they are reimbursed by the court.

Each administrator and their lawyer will receive 4%, 3%, 2%, and 1% respectively of the first $100,000, the next $100,000, and anything above $700,000. The administrator must:

1) Locate the heirs using reasonable efforts.

2) Using their best judgment, they will dispose of the assets by way of collection or sale.

3) Obtaining court orders to distribute proceeds to creditors, including yourself.

4) Distribute any remaining assets in accordance with the court's order.

5) Prepare the 940 annual tax return for the deceased person's estate for each year the individual has been dead.

6) Prepare the final distribution report with the assistance of the attorney for approval by the court.

7) Distributing any remaining assets to the heirs if any.

Administrators have other duties. The court is more likely to let an uncertified person administer a smaller estate. A probate bond is required for anyone administering an estate. Bonding companies require that they retain a probate lawyer before selling them a bond executor of a will.

The Probate Courts are familiar with certified fiduciaries and often work with them. You get to work with someone who has a good reputation and is able to keep the proceedings moving.