The Role of a Probate Administrator in Handling Estate Distributions

What is a Probate Administrator?

The administrator of an estate is appointed by a court to oversee the estate administration process. They are responsible for contacting the family of the deceased, paying the estate’s debts, and distributing assets according to the will or state intestacy laws.

An administrator will be assigned if:

• The deceased did not have a will.
• The will is invalid.
• The will is successfully contested.
• An executor is not named in the will.

What are the Duties of a Probate Administrator?

An appointed administrator has many duties they are responsible for fulfilling:

• Notify beneficiaries: The administrator is responsible for ensuring that all of the listed beneficiaries and all heirs at law are notified of the will in probate. The notification may be in writing or in person, and it must include heirs and beneficiaries with a copy of the will if provided.
• Identify assets: The administrator must list all assets owned by the deceased, including real estate, bank accounts, stocks, or other investments.
• Value assets: The administrator must obtain valuations for all the deceased’s assets to determine their value for tax and distribution purposes.
• File all necessary documentation: The administrator is responsible for filing documents such as death certificates, wills, and other legal documents to initiate the probate process.
• Pay debts and taxes: The administrator is required to pay off all debts, funeral and administration expenses, and taxes of the deceased prior to distributing assets to beneficiaries.
• Distribute assets: After paying all debts, expenses, and taxes, the administrator can distribute assets as outlined in the will or according to state intestacy laws when there is no will.

How to Initiate Probate Without a Will?

When a person would like to serve as the personal representative of an estate without a will, they must start by filing a petition in probate court adhering to the following steps:

• Review the assets of the deceased to ensure the estate qualifies for a probate exemption. Then, they will need to provide an itemized list of all personal property that is to be distributed and determine a value for the estate.
• Probate should be filed in the county or state where the deceased lived. If they owned a home, it may be the county in which the house is located.
• Submit a certified copy of the death certificate to the probate court and request forms to Petition for Letters of Administration. Names and addresses of all remaining living relatives of the deceased may also be requested.
• Complete and file the petition requesting administration, which asks the court to appoint the individual as the estate’s representative.
• The petitioner must notify all surviving family members that they are requesting to be the administrator. A publication in the local newspaper is needed to inform creditors and others that a Notice of Petition to Administer Estate has been filed. This notice is for all creditors to file their claims against the estate. In most cases, creditors have four months to file a claim.
• At the first court hearing, the petition will be granted unless another more suitable candidate steps forward. After receiving Letters Testamentary, which is a document from the probate court granting authority to act in this position, the petitioner may move forward as the representative of the estate.

What is the Final Distribution of Probate Assets?

An estate in probate cannot formally close until after the final distribution of assets, which occurs when probated assets are transferred to beneficiaries. Only probated assets are distributed.

Probate assets are the collection of assets and property that make up the estate of the deceased. Examples of probate assets include:

• Vehicles and automobiles
• Jewelry
• Art and collectibles
• Financial accounts such as checking or savings accounts
• Stocks and bonds
• Some types of real estate

Non-probate assets are excluded from the probate process and are often assets that transfer automatically to a beneficiary or other designate upon the owner’s death. These are typically assets or property that are jointly owned, are payable or transferable upon death, have a designated beneficiary, or are owned by a trust. Examples of non-probate assets include:

• Accounts or policies with beneficiary designations
• Assets owned by a trust
• Assets with a transfer or payable on death clause
• Pension plan funds
• Properties with right of survivorship
• Wages, salary, or commissions due to the decedent upon death
• Property that is automatically distributed to immediate family members according to state law

What is a Formal Versus Informal Distribution Process?

An informal distribution process allows the administrator to distribute assets at any time during the probate process, provided they follow the terms of the will or intestate succession rules. Typically, the administrator is encouraged to wait until the creditor claim period is over. Once the administrator makes the distributions, they must report to the probate judge, informing them of how the assets were distributed.

A formal distribution process requires the administrator to submit a distribution plan to the probate judge, who will ensure the plan is in line with the will or intestate succession laws. Once approved, the judge will issue a formal order of distribution. The administrator must understand that while they are issued legal authority to make decisions for the estate, they are not authorized to make the final distributions until the court grants permission.

Do You Need an Attorney?

If you have recently suffered the loss of a loved one, the last thought on your mind should be the complexities and legalities of sorting their estate. In your time of grieving, let Bloodworth Law, PLLC, take this weight off of your shoulders. Call us today at 407-449-8958 or complete a contact form to schedule your free consultation.