Who is in Charge of Disbursing an Estate?

When someone dies, their financial and legal life does not end automatically. A person must step in to manage their money, property, and possessions. The person legally responsible for this job is called the Personal Representative. This person is in charge of disbursing the estate.

The name of the Personal Representative depends on whether or not the deceased left a valid will. The two possibilities are the executor and the administrator. Both roles require the person to take on serious legal and financial duties.

The Executor's Role

If the deceased left a legally valid will, that document names a person to take on the estate duties. That person is called the executor.

The executor's first job is to apply to the court for a Grant of Probate. This is the official court document that confirms the will is authentic and gives the executor the legal power to act.

Once that power is granted, the executor has many duties. They must first find and secure all the assets. If the deceased owned a house, the executor must secure the property and inform the insurance company immediately. If the property is unoccupied, the insurer might require regular checks on the house, read the terms carefully to understand what the requirements are to keep the insurance valid.

The executor is responsible for tracking down every asset and debt. They notify all relevant parties of the death. This includes banks, investment companies, pension providers, and government agencies like the tax office. They must stop payment of any salaries or benefits and must find out the balance of all accounts as of the date of death.

They must also value the entire estate. This detailed valuation is needed to determine if any Inheritance Tax is due. The executor is personally responsible for making sure all taxes are calculated, reported, and paid to the government. This is an extremely important part of the probate process and is critical to get correct.

The executor is also responsible for paying off all the deceased person's debts. This is done with the estate's money before any property is distributed. Once all debts and taxes are settled, the executor must distribute the remaining assets exactly according to the instructions written in the will. If the will says a specific asset goes to a specific person, the executor must make sure that happens.

The Administrator's Role

If the person died without a will, they are said to have died intestate. In this situation, there is no named executor. The court appoints someone, usually the closest living relative, to fill the role. That person is called the administrator.

The administrator must apply to the court for Letters of Administration. This document gives them the same legal authority as the Grant of Probate.

The difference is that the administrator does not follow a will that contained instructions on where and what should go to certain beneficiaries. They must follow state law, known as the rules of intestacy, to determine who inherits the assets. These rules set a strict order of priority, usually starting with the surviving spouse, then children, then other close relatives. The administrator has no choice in this distribution.

The Personal Representative's Accountability

Whether executor or administrator, the Personal Representative holds a position of great trust. They must keep detailed accounts of the estate. They must show everything they paid out, everything they brought in, and how the rest was distributed. It is recommended that the executor or administrator open a special bank account just for the estate's finances, that way all incomings and goings are exclusively for the the account.

Beneficiaries have a right to information during this process. The Personal Representative has a duty to keep them updated on the progress. If a beneficiary feels the representative is mismanaging the estate or breaching their duties, they can take legal action. Because the job is complex, especially for estates with high value or tricky assets like trusts, many executors choose to hire a solicitor or an attorney to help them. This cost is usually paid by the estate.