When a loved one passes away, navigating the legal and financial maze of settling their estate can be overwhelming. Whether someone has named you an executor or an estate administrator, both roles have significant responsibilities. However, while many people use these terms interchangeably, there are key differences about an estate administrator vs. executor, particularly when it comes to when and how the process begins.
In many cases, working with a professional fiduciary who specializes in estate administration can make all the difference in ensuring the process runs smoothly. Here is what you need to know to understand the difference between these two vital roles.
Estate Administrator vs. Executor: What’s the Difference?
One of the most crucial points to understand about the difference between the executor and administrator is that executors are appointed in a will, while administrators are nominated by the court when there is no will. Still, there’s more to it than that.
Related Article: What is an Estate Administrator?
What is an Executor?
An executor is an individual named in the deceased person’s will, entrusted with administering their estate and distributing inheritances.
Because they are appointed in the will, they can carry out the deceased person’s final wishes and begin immediately after the will is validated by the probate court. Essentially, an executor has their marching orders in advance.
Still, executors have the authority to begin these tasks only after the probate court formally validates the will, which can take several weeks or even months. Until this happens, the executor cannot start the distribution process.
It’s important to note that being named executor isn’t a role to take lightly. Executors can be held legally and financially responsible if they fail to follow the terms of the will, mismanage assets, or fail to notify heirs.
Related Article: I Have No One to be the Executor of my Will. What Should I Do?
What is an Estate Administrator?
The circumstances surrounding their appointment are the most significant distinguishing characteristics when learning the difference between an estate administrator vs. executor. An estate administrator comes into play when:
- There is no valid will, and it enters intestate succession, whether due to a will contest or improper execution.
- The named executor is unable or unwilling to serve.
- The will fails to name an executor.
- The named executor has been disqualified.
Essentially, an administrator fills a similar role as an executor but is typically appointed when someone passes away without a will, a situation known as dying “intestate.” When someone dies intestate, their estate enters probate and is distributed per next of kin laws.
In these situations, the court appoints an estate administrator to manage the estate and settle any outstanding debts. Much like an executor, the estate administrator is responsible for gathering assets, paying creditors, and ensuring that any remaining assets are distributed according to the state’s intestate succession laws.
Unlike an executor, however, an administrator does not have a will to guide the process. This means the administrator must adhere to legal guidelines for distributing assets, generally prioritizing close family members like spouses, children, or siblings.
Another significant difference is that an estate administrator cannot act until a petition is filed with the court and the court approves their nomination. In some situations, this can take longer. In others, it can be faster. It depends on the unique situation.
Related Article: What is the Probate Process if You Die Without a Will or Trust?
Who Can Be an Executor or Administrator?
In California, anyone at least 18 years old and of sound mind can serve as executor or administrator. Additionally, unlike some states, California does not prohibit a convicted felon from serving as an executor or administrator.
Estate Administrator vs. Executor: Making the Right Choice
Whether executor or administrator, the core responsibilities are essentially the same for both roles. These duties include:
- Upholding their fiduciary duty.
- Identifying and gathering the decedent’s assets.
- Preserving and appraising the decedent’s assets.
- Sending notices to creditors.
- Paying debts, funeral costs, and administration expenses.
- Maintaining an account of financial activity.
- Preparing and filing tax returns.
- Distributing remaining assets/inheritances to beneficiaries.
- Filing necessary court documents.
- Closing the estate.
As we mentioned, a key distinction exists in how they fulfill these duties. When an executor is administering the estate, they must follow the instructions in the will. Terms in the will dictate how inheritances should be divided and other key actions they must take.
When an administrator performs their duties, however, they follow probate law and distribute inheritances to heirs based on intestate succession order.
Because of the complexity and specialized skills this role requires, you should choose someone with ample experience in this field. When deciding whether to work with a professional administrator or executor, consider these factors:
- Estate complexity
- Family dynamics
- Time constraints
- Legal expertise required
- Potential conflicts of interest
“Managing an estate is like navigating a complex maze. Whether you’re an executor following a clear path or an administrator finding your way through uncharted territory, a professional ensures you don’t get lost in the process.”
– Marcia L. Campbell, CPA & Professional Fiduciary
Related Article: How to Find an Executor for My Will in California
Now You Know the Difference Between an Estate Administrator vs. Executor. Always Work with a Professional.
Now you know the key distinctions between an estate administrator vs. executor. Think of an executor as a symphony conductor who has been chosen in advance, their sheet music (the will) carefully prepared and waiting. An estate administrator, on the other hand, is more like a skilled musician called in at the last minute when the designated conductor can’t make it to the performance – they’re equally capable of leading the orchestra, but they need an official appointment before they can raise their baton.
Understanding these roles is essential for proper estate settlement. Professional fiduciaries can serve in either capacity, bringing expertise and objectivity to an emotionally charged process. This, ultimately, is why working with a professional is imperative to avoid legal and financial trouble for the estate, executor, or administrator.