What is an administrator of estate?

Creating a last will and testament is more than a way to share your final wishes. This legal document provides your loved ones with a roadmap for how you want your estate managed when you’re gone.

But if you die without a will (known as dying intestate), your local court will decide what happens to your estate through a process called estate administration. Estate administration is the court-supervised process of settling a person’s affairs and distributing their assets according to a set of rules known as intestate succession laws.

There are many roles to fill during this process, but few are as important as the person chosen to lead the charge: the administrator of estate.

What is an administrator of estate?

An administrator of estate is appointed by a local court to oversee the estate administration process. They’re responsible for contacting loved ones, paying debts, and distributing assets according to the deceased’s will or state intestacy laws.

The court will assign an administrator if:

• The deceased didn’t have a will
• The will is deemed invalid
• The will is successfully contested
• There isn’t an executor named in the will

While someone can volunteer to serve as estate administrator, they can’t act until the court approves them. If no one volunteers, the court will generally appoint the deceased’s next of kin, like their spouse or an adult child.  

How is an administrator of an estate appointed?

An administrator of estate is appointed by the local probate court. But if you’ve been assigned to this role, you’ll need more than the court’s approval before you can start managing the deceased’s affairs: You’ll also need a letter of administration.

Letters of administration are legal documents that prove your authority to act as administrator. They grant you legal access to estate assets, like real estate property or financial accounts. For example, a bank may require you to submit a letter of administration before releasing the contents of the deceased’s accounts.

To receive your letters of administration, you’ll first file an application to be estate administrator with your local probate court. You’ll then attend a court hearing, where a judge will evaluate your application, verify that you’re able to serve as administrator, and either approve or deny your request. If approved, the judge will issue you a letter of administration and you can begin administering the estate.

What are an administrator’s duties?

As administrator, you’ll need to:

• Notify loved ones. Inform loved ones of the deceased’s passing and your role in administering their estate.
• Gather all assets and documentation. Inventory all of the deceased’s assets and property and collect all related documents, including deeds, titles, or bank account information.
• Pay bills and outstanding debts. Identify any bills or debt and use estate funds to pay them.
• File taxes on estate assets. File an income tax return on the estate’s behalf for any income-generating assets, like bank or investment accounts.
• Distribute assets to beneficiaries or heirs. If the deceased had a will, they likely listed who they wanted to inherit their property. These people are called beneficiaries. If the deceased didn’t have a will, then state intestacy law will determine who receives their property.
• Petition for final distribution. Attend a court hearing where a judge will officially close out the estate. This ends both the administration process and your role as administrator.  

Frequently asked questions

Estate administrator vs. executor: What’s the difference?

Administrators and will executors are both responsible for managing and distributing the assets in an estate. But while they share the same duties, they’re assigned to their roles differently.

If someone dies without a will, the probate court will assign an estate administrator to their estate. This administrator must follow state law to determine how assets are distributed. An executor is named by the will creator, and should follow the instructions the deceased left in their will.

Can an administrator of an estate be a beneficiary?

Yes. In fact, it’s common for an administrator to be the beneficiary of an estate. For example, the administrator is often the deceased’s next of kin, like a spouse or an adult child, who is also often a beneficiary.

Can an administrator of estate sell property?

Depending on state law, an administrator can sell property in order to pay debts or other costs associated with the estate.

If the deceased left a valid will, they may have included instructions for which assets to sell. If there isn’t a will (or the will is deemed invalid), the administrator will need to get approval from the court before selling any property.

It’s important to note that an estate administrator must act in the best interest of the estate and its beneficiaries. They’re not allowed to sell property to benefit themselves.

Does an administrator of estate get paid?

Yes, in many cases, the administrator of estate gets paid for their work.

If the deceased left a will, they may have outlined payment terms for their will executor. But if they didn’t include payment instructions or if there is no will, the local court will determine compensation according to state law. While the amount can vary from state to state, it’s often calculated based on the size of the estate.  

Make estate administration easy for your loved ones

An estate administrator plays a vital role in the administration process. They’re responsible for all aspects of managing an estate, including notifying loved ones, paying bills, filing estate taxes, and distributing assets.

Without a valid will, the administrator must distribute property according to state law rather than the deceased’s wishes. The process of identifying and locating beneficiaries can add additional time to an already lengthy legal process.

By having a valid will, you can ensure your wishes are known and your assets go to the people you want to have them — saving your loved ones both time and hassle. And with FreeWill’s free will-making tool, you can create your free will in as little as 20 minutes.