When someone passes away without a will, the local probate court appoints an administrator to manage the deceased’s affairs and bring their estate to a close. Administrator responsibilities typically involve settling debts, and then distributing assets according to state intestacy laws. To ensure everything is handled properly and to protect the interests of heirs and creditors, courts frequently require the administrator to obtain a type of fiduciary bond known as an administrator bond. Read on for a summary of administrator responsibilities and bonds.
Understanding The Administrator Role
Typically, the representative authorized by the probate court to bring closure to the affairs of the deceased is a close relation, but there is no law mandating this, and a trusted friend or even a professional fiduciary can also serve as administrator. Regardless, the designated administrator becomes legally responsible for closing out the affairs of the deceased in accordance with state protocols. Once appointed, an administrator can anticipate that it will take at least six months to complete their duties, because, as attorneys explain: “Only after the time to file claims has expired and claims have been reviewed,” can the administrator begin the distribution of assets, following the state laws of intestacy. Estate law attorneys at Saiber provide this overview of administrator responsibilities:
So, what exactly does an administrator do? Their primary responsibility is to act as a fiduciary, meaning they must manage the deceased’s assets for the benefit of their heirs and creditors. This involves a series of crucial steps, starting with gathering and inventorying all of the deceased’s property. This isn’t just about big assets like real estate or bank accounts; it also includes personal belongings, investments, and even digital assets. Once everything is accounted for, the administrator is responsible for paying off any outstanding debts, including funeral expenses, medical bills, and credit card debt. Only after these financial obligations are settled can the remaining assets be distributed according to the state’s intestacy laws, which are specific guidelines for how property is passed on when there isn’t a will. This entire process requires meticulous record-keeping, clear communication, and a thorough understanding of legal requirements to ensure a smooth and fair resolution of the estate.
Before the court officially closes the estate, an administrator must: “Prepare a final accounting of the estate’s financial transactions for approval by the court and distribution to heirs.” When there is no will or other estate plan in place, the assets of the deceased, such as personal property, bank accounts, and real estate, are distributed in accordance with intestate succession laws:
The purpose of intestate succession laws is to distribute the decedent’s estate in a manner that closely represents how the average person would have designed their estate plan … .The Uniform Probate Code (the Code) is the starting point for many states’ laws. Nevertheless, the laws of different states vary significantly from each other and from the Code itself … .Under the Code, close relatives inherit before distant relatives. The classes of relatives whose members receive property under the Code include the following:
- your surviving spouse,
- your descendants (children, grandchildren, etc.)
- your parents
- the descendants of your parents (siblings, nieces, and nephews)
- your grandparents
- the descendants of your grandparents (aunts, uncles, and cousins).
- The Code treats adopted descendants the same as biological descendants. Under this structure, if no relative exists, the property then “escheats” (goes by default) to the state.
Though the probate process and laws of intestacy exist to provide a fair and public means of resolving debts and then distributing assets, complications can arise. For example, since the laws of intestacy date to the 1950s, they do not generally take blended, or modern family structures into account. Attorneys at Find Law point out that, ideally, the opportunity to self-direct how loved ones or charities should receive assets and treasured belongs is a “strong motivator” for being proactive about estate planning:
By creating your will, you will be able to:
- Control who receives your assets, property, and real estate.
- Nominate a personal representative to administer your estate.
- Nominate a guardian for any minor children.
What Is An Administrator Bond?
In most states, it’s common for the court to require a type of fiduciary bond, referred to as an administrator’s bond, before the designated administrator can begin to handle the affairs of the estate. As attorney Daniel Antonelli explains: “An Administrator’s bond is a type of insurance policy that guarantees the proper administration of an estate. In Surrogate’s Court, an Administrator is usually required to post a bond before he or she qualifies to receive the appointment (also known as being granted Letters of Administration)….Bonds protect estate beneficiaries and creditors from the negligent and intentional acts of fiduciaries that cause harm to the estate.” For more information about administrator bonds, as well as assistance to quickly obtain administrator bonds for probate and surrogate courts in every state, visit Colonial Surety Company:
Probate and Estate Attorney? Here’s Help…
All types of court and fiduciary bonds are just a few clicks away with The Partnership Account® for Attorneys from Colonial Surety Company. Once you’ve signed up, just:
- Log into your private dashboard
- Choose from our complete portfolio of fiduciary
- Get a quote and send it to your client for completion, or go ahead and complete it on their behalf – the choice is yours
- Download, print or e-file the bond. It’s that easy!
Available fiduciary bonds include: administrator, estate, probate, personal representative, trustee, conservator, guardian and more.
Court bonds include: appeal, supersedeas, TRO, replevin and many more.
We’re direct, writers, and our experienced team is here to help ensure you meet even the most persnickety of bonding requirements.
The Partnership Account® for Attorneys
Colonial Surety is rated “A Excellent” by A.M. Best Company, U.S. Treasury listed, and licensed for business everywhere in the USA. Our customers have awarded us a 4.8 Trustpilot score.