The term for the individual responsible for closing out the affairs of a deceased relative or friend can be tricky, so here’s help. When someone dies without a will, probate court typically appoints an administrator. Alternatively, if a will has been created, then an executor has been designated in it. The term personal representative is an umbrella term that can refer to either an administrator or executor, and tends to be used in some states more than others.
Fiduciary Roles: What’s the Difference?
No matter the circumstances and specific nomenclature used, the individual charged with settling affairs once someone has died, is a fiduciary, and has a legal obligation to act responsibly and in accordance with the law, putting the interests of the estate and beneficiaries ahead of their own. Usually, the fiduciary is referred to as either an administrator or an executor. What’s the difference? Attorney Robert L. Cohen (aka “the probate guy”), offers this overview of the key differences between an administrator and executor:
When someone dies, their assets become part of their “estate.” After death, someone has to be appointed to manage the decedent’s (the legal term for a deceased person) estate. The person in charge of administering a decedent’s estate is either an executor or administrator. The roles and responsibilities of an executor are the same as those of an administrator. However, there is a difference in how executors and administrators are appointed…. An executor is an individual named in the decedent’s Will as the person to carry out the decedent’s last wishes.….Just like an executor, an administrator manages a decedent’s estate. However, an administrator is appointed by the probate court in cases where the decedent did not leave behind a Will. Usually, the court chooses who will serve as administrator in order of priority. In California, surviving spouses are given top priority, followed by children, grandchildren….
In addition to the difference in how administrators and executors are designated to manage the affairs of the deceased, there is also a difference in how they ultimately carry out the distribution of the estate’s assets. Note that both administrators and executors are responsible for following probate protocols and timelines to ensure debts are paid before any assets can be distributed. Then, while executors ensure assets are gifted to beneficiaries based on the provisions made in a will, administrators are responsible for distributing assets to next of kin following the order prescribed in the state laws of intestacy. Aside from these differences, the primary responsibilities that both administrators and executors must carry out are essentially the same. In fact, sometimes the term personal representative is used to refer to either an administrator or an executor. Whether the term administrator, executor or personal representative is used, the responsible individual is likely to find themselves with these essential duties involved in closing out the affairs of the deceased:
- Identifying and gathering the decedent’s assets
- Preserving the decedent’s assets
- Appraising the decedent’s assets
- Sending notices to creditors
- Paying any debts owed by the decedent, funeral costs, and administration expenses
- Maintaining an account of financial activity
- Preparing and filing tax returns
- Distributing inheritances to beneficiaries or heirs
- Closing the estate
Given their significant responsibilities, in most states, it’s typical for administrators and executors to “have bonds to ensure their trustworthy behavior in their roles. These bonds guarantee that all the estate debts will be satisfied and that the remaining assets will be properly distributed to the appropriate heirs.” Essentially, administrator and executor bonds serve as guarantees that duties will be carried out in accordance with the law, and in the best interests of the estate and beneficiaries. More information about administrator and executor bonds, as well as help obtaining them, is available right here at Colonial Surety Company:
Executor Bonds and Administrator Bonds
Probate Law Practice?
Colonial Surety Company makes it easy and speedy for attorneys across the country to quickly secure personal representative bonds on behalf of clients. Our user-friendly online service allows you to efficiently quote and obtain all kinds of fiduciary and court bonds. With a few clicks on The Partnership Account® for Attorneys, you’ll select the bond needed, send it to your client for payment, and then download, e-file or print the bond.
Our fiduciary bonds include: administrator, estate, executor, guardian, personal representative, probate, surrogate, trustee, conservator and the list goes on. Court bonds include: appeal, supersedeas, injunction, replevin, receiver and more.
Speedy and easy fiduciary and court bonds are a few clicks away:
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