When a person dies leaving an estate that is settled in court, someone must administer it. An executor is the person named in the will to carry it out, appointed by the court through letters testamentary. An administrator is appointed by the court through letters of administration when there is no will, no named executor, or the named executor cannot serve. Their duties include taking an inventory of the estate, paying debts, taxes, and expenses, managing the property, and distributing the remainder to the heirs, all under court supervision, with a bond and periodic accountings.
An estate does not settle itself. When a deceased person’s estate goes through court settlement, a responsible person — an executor or an administrator — must gather the assets, pay what is owed, and hand the rest to the heirs.
Executor vs. Administrator
The two roles do similar work but arise differently:
- An executor is the person named in the will to execute its provisions. After the will is admitted to probate, the court issues letters testamentary confirming the executor.
- An administrator is appointed by the court where there is no will, the will named no executor, or the named executor is incompetent, refuses, or fails to qualify. The court issues letters of administration. (An administrator with the will annexed handles an estate that has a will but no willing or able executor.)
The law sets an order of preference for who may be appointed administrator — typically the surviving spouse or next of kin, or a person they request, then principal creditors, then others the court selects.
The Core Duties
Whether executor or administrator, the representative of the estate must:
- Take possession of and inventory the estate’s assets, and appraise them;
- Manage and preserve the property during settlement (collecting income, maintaining assets);
- Pay the debts, taxes, and expenses of the estate — including the estate tax — in the order and manner the law provides, giving creditors the chance to file claims;
- Render accountings to the court periodically; and
- Distribute the remaining estate to the heirs, devisees, and legatees according to the will or the rules of intestacy, upon the court’s order.
The Bond and Court Supervision
Because the executor or administrator handles other people’s property, the law requires a bond (unless the will exempts a named executor and the court allows it), which answers for faithful performance. The estate is administered under the court’s supervision: significant acts — selling or mortgaging estate property, for instance — generally require court approval. The representative is a fiduciary and must act with honesty and diligence for the benefit of the estate and those entitled to it.
Accountability and Removal
An executor or administrator who neglects duties, wastes the estate, or self-deals can be removed and held liable for losses, with the bond available to answer. They are entitled to reasonable compensation for their services and reimbursement of proper expenses, as the court allows.
When You Do Not Need One: Extrajudicial Settlement
Not every estate needs a court-appointed administrator. Where the heirs agree, there is no will, and there are no debts, they may settle the estate extrajudicially among themselves, without an administrator or court proceeding (subject to publication and the estate tax). Judicial administration is for estates with a will to probate, disputes among heirs, unpaid debts, or other complications.
Practical Advice
- If you are named executor, expect to probate the will, inventory the estate, pay debts and the estate tax, and account — all under court supervision.
- If there is no will, the heirs can seek letters of administration, or, if they agree and there are no debts, settle extrajudicially instead.
- Get court approval before selling estate property, and keep careful records — you are accountable and can be removed for mismanagement.
Frequently Asked Questions
What is the difference between an executor and an administrator? An executor is named in the will and confirmed by letters testamentary. An administrator is appointed by the court through letters of administration when there is no will, no named executor, or the named executor cannot serve.
What does an executor or administrator do? They take an inventory of the estate, manage and preserve the property, pay debts, taxes, and expenses including the estate tax, render accountings to the court, and distribute the remainder to the heirs, all under court supervision.
Do they need to post a bond? Yes, generally, unless a named executor is exempted by the will and the court allows it. The bond answers for faithful performance, and major acts like selling estate property need court approval.
Do we always need a court-appointed administrator? No. If the heirs agree, there is no will, and there are no debts, they may settle the estate extrajudicially among themselves, subject to publication and the estate tax, without a court-appointed administrator.
This commentary is for general informational purposes only and does not constitute legal advice. For guidance specific to your situation, please consult a licensed attorney.
If you need to administer an estate or are named as executor, our firm can guide you through your duties and the court process. You may reach us via Viber or WhatsApp, call us at 0995 433 5550, or send an email to vivasnobles@gmail.com. We look forward to hearing from you.