Estate planning requires an understanding of two vital roles: the executor and the administrator.
While they may seem synonymous, there are some subtle differences.
At Noor Law, we’re committed to elucidating these complexities.
Today, we’ll further explore these specificities.
(Read Time: Approx. 4 minutes)
Topics Discussed:
- Estate planning and the differences between executors and administrators.
- Clarity on these essential roles in wills and estate management.
A Brief on the Responsibilities of a Personal Representative
Upon the unfortunate event of a person’s passing, it falls upon the shoulders of one or multiple personal representatives.
These are either executors or administrators, and they set out to manage the deceased’s estate.
Their duties are multifaceted:
- Determining and remitting any impending inheritance tax.
- Securing a grant of representation when requisite, validating both their mandate to oversee the estate and the legitimacy of the existing will.
- Collating the assets of the deceased.
- Settling debts which the deceased might have left behind
- Covering funeral expenses and administrative overheads.
- Allocating the estate to the beneficiaries, guided either by the stipulations in the will or the intestacy rules.
The Executor Defined
An executor is appointed if the deceased has bequeathed a legitimate will or codicil that designates one or more individuals
They possess the right to apply for a grant of probate if necessary.
This is to confirm the will’s authenticity and their competency to manage the deceased’s estate.
Their primary responsibility is distributing the estate to the beneficiaries outlined in the will.
Demystifying the Role of an Administrator
In instances where a valid will is absent, The Non-Contentious Probate Rules 1987 delineates those eligible to manage the estate, based on a hierarchy.
Such individuals are termed administrators.
Administrators are tasked with obtaining a ‘grant of letters of administration’
These are essentially a testament to their authority over the estate.
They allocate the estate to beneficiaries, adhering to the intestacy rules.
This hierarchy includes, in order:
- The spouse or civil partner.
- Offspring, inclusive of adopted and out-of-wedlock children.
- Full siblings or, if deceased, their progeny.
- Half-siblings or their descendants.
- Maternal or paternal uncles and aunts, or their offspring.
- Half-blood uncles and aunts or their children.
In the rare event that none from the list can claim the estate, the Treasury Solicitor may intervene on the Crown’s behalf, terming the estate as ‘bona vacantia’ (meaning ‘ownerless assets’).
After this claim, the Treasury Solicitor can apply for the grant.
In circumstances where the deceased has outstanding unpaid debts, creditors can seek the grant to retrieve owed sums.
What If No Executor is Specified?
Should there be a legitimate will, without a designated executor or if the designated one is reluctant or incapable, a priority order is instituted.
This determines who is eligible for the ‘grant of letters of administration with will annexed’.
Frequently, this falls to the beneficiaries of the residuary estate.
This grant may also be issued in exceptional scenarios, such as an executor functioning via an attorney.
The estate’s distribution adheres to the will’s terms.
Who is Eligible to be a Personal Representative?
Any individual can assume the role of a personal representative, with certain legal prerequisites.
They must be adults, mentally sound, and financially solvent.
If a representative is remiss in administering the estate, alternate rules come into play, designating who can resume their duties.
Executor vs. Administrator: The Crux of the Matter
Beyond the jargon, the key difference lies in the source of their authority.
While an executor’s power stems from the will, cemented by the grant of probate, administrators are appointed judicially.
Following the issuance of the grant of letters of administration, an administrator enjoys equal rights and responsibilities to an executor.
The roles of executor and administrator are analogous.
Drafting a will grants individuals the discretion to select who will shoulder the crucial responsibility of estate management posthumously.
While informing someone of their executor status isn’t mandated, it’s sensible, granting them the choice to accept or decline the role.
Summary
In summary, the world of wills and estate planning is a complex tapestry, with each thread playing a significant role.
If you have lingering questions or require expert guidance on crafting your will, contact Noor Law.
Our seasoned solicitors are poised to assist, ensuring your wishes are articulated clearly and legally.
Your legacy deserves precision and expertise; let us help you safeguard it.
Contact us using the form here to know more. Alternatively, call us on 01772 282768