You might wonder about the differences and similarities between an administrator, personal representative, trustee, and executor. They are fiduciaries; the court appoints them to deal with third-party affairs ethically and fairly.
However, with estate planning, there is a substantial difference in their respective roles and responsibilities. In this guide, we’ll discuss the duties of an administrator, personal representative, trustee, and executor:
Administrator
The role of an administrator includes:
- Filing the Will with the probate court
- Notifying creditors, government agencies, and banks about the death
- Determining if probate is necessary
- Appearing in court on behalf of the estate
- Paying taxes and debts
- Distributing assets to beneficiaries and disposal of leftover property
- Submitting an inventory of assets to the court
The difference between an administrator and executor is that a court must officially appoint the executor, even if the deceased has named them in the Will. However, if a deceased has specified an administrator, the court is precluded from officially appointing them.
Serving as an administrator entitles the person to a fee which is mentioned in the Will. If the administrator’s fees are not in the Will, the state laws govern how much they can claim.
Personal representative
A probate court assigns a personal representative to oversee the estate administration when someone dies without a Will and has not transferred the property into a living trust. It can be an institution like a bank or trust, a person, or a combination of both. The decedent can assign a personal representative in their last Will, and the probate court will honor that wish. If not, the probate court will follow the State Law to appoint a representative. Usually, it is the surviving spouse or a close family member.
Trustee
Just like the person writing a Will can name a personal representative for managing his estate, a living trust can designate an individual as a trustee. We call the person who creates a trust the grantor or trust maker.
The trustee can be a person, an institution, or both. In most cases, the trust maker, trustee, and beneficiary of a living trust are the same.
Executor
An executor is a person named by the deceased in their Will to carry out their wishes after death. An executor offers the Will for probate, secures assets, distributes the property to beneficiaries, and pays any remaining debts and taxes to the government and creditors.
They will also examine the trust and Will documents. An executor also ensures that funds are not distributed without the approval of a probate judge. One other responsibility of the executor is to use estate funds to pay for burial and funeral expenses. He or she can also hire an attorney to manage and disperse the assets of the estate.
About MT Paralegal & Consulting for Wills & Estates
If you have been handed over the responsibility of an estate but lack the knowledge and time to carry it out, MT Paralegal & Consulting should be your one-stop destination. We provide Wills and estate planning consultation services. We assist fiduciaries in closing estate deals in a timely, transparent, and cost-efficient manner. You can reach out to us at 240-230-7925 or michelle@mtparalegal.com to know more.
