What is the difference between executor and administrator

This protects the fiduciary from later claims by a beneficiary. A final income tax return must be filed and a reserve kept back for any tax that may be due. A question often arises concerning the fees or commissions to which a personal representative is entitled for services rendered to the estate.

The first place to check is the statutory law of the state where the estate is probated. Some states have standard fixed fees. There are also local county rules and customs that govern what the personal representative is entitled to charge. Professional executors such as banking and trust institutions advertise fixed-fee schedules. These negotiations occur between the prospective executor and the person making the initial designation the individual desiring to name the institution as personal representative in her will.

An attorney who specializes in estate administration may be helpful in negotiating a lower fee for a large estate. In all cases, the executor or administrator is entitled to reasonable compensation for services.

Fees should not be determined solely on the basis of the assets of the decedent; they should also take into account the nature of the work involved, the time spent, the complexity of the problems, the professional background and competence of the executor, and the ultimate results and benefits passed on to the heirs.

Remuneration for services should bear a reasonable relationship to the time spent as well as the quality of work and results achieved. The personal representative should keep a detailed record of time spent, services performed, and expenses paid on behalf of the estate. Furthermore, the personal representative should make periodic written progress reports to the beneficiaries and, if the situation permits, submit periodic bills for services rendered. In any event, before any work is begun, negotiate and settle in writing the issue of fees based on an estimate of complexity and other issues.

The subsequent announcement that the personal representative expects to receive a significant portion of that amount for services performed doubtless will be met with some serious resistance. When the personal representative is an immediate member of the family, problems about fees are less likely to occur.

Finally, there is the question of the division of the fee when two or more individuals are serving as co-executors or co-administrators. When they are individuals, the fee usually is divided equally although in a few states each executor could receive a full commission.

But when a corporate executor is serving with an individual co-executor, courts often award the corporate executor bank or trust company a higher percentage. Trusts are designed to distinguish between income and principal, as many of them, especially older trusts, provide for income to be distributed to one person at one time and principal to either that same person at a different time or to another person entirely.

For example, many trusts for a surviving spouse provide that all income must be paid to that spouse, but only pay the spouse principal in limited circumstances, such as a medical emergency. Unless a fiduciary has experience in this area, it is recommended that he or she seek professional advice regarding the investment of trust assets. In addition to good investment results, the fiduciary should invest within the applicable Prudent Investor Rule that governs the trust or estate.

A skilled investment advisor can help the fiduciary decide how to invest, what assets to sell to provide cash for expenses, taxes, or outright distributions, and how to minimize income and capital gains taxes.

During the period of administration, the fiduciary must provide an annual income tax statement called a Schedule K-1 to each beneficiary who is taxable on any income earned by the trust.

The fiduciary can be held personally liable for interest and penalties if the income tax return is not filed and the tax paid by the due date, generally April 15th of the following year as is the case with individual income tax returns. How do I title accounts? How do I sign my name in a fiduciary capacity? Where do I hold the estate or trust assets?

And why they both should be bonded A short answer is that an Executor Executrix if a female is the person whom is named in the Will to take charge of the estate. Previous Post Would a crime policy cover this? Next Post Renewing your bond? Renew with us, the insurance and bonding agency worth recommending since If you are concerned with the difference between executor and administrator and would like to consult an attorney, you can send us an email at attorneyalbertgoodwin gmail.

An estate executor is someone who is in charge of an estate due to being nominated in the will. Being nominated as an executor in a will in and of itself is not enough to start acting on behalf of an estate. Letters Testamentary is a document has many safety features, such as watermarks. It looks similar to other New York documents that have to do with birth and death: Letters Testamentary look similar to a birth certificate or death certificate.

It which would look something like this:. Once appointed, an executor will receive enough Certificates of Appointment of Executor to present to every bank and other institution when they marshal the assets of the estate. The Certificates of Appointment also have watermarks and security features.

The difference between in the difference between executor and administrator of estate is not a big one in this regard either. The certificates look very similar.

This is what a Certificate of Appointment of Executor of estate executor of a will would look like:. An estate Administrator is usually someone who is appointed by the court to be in charge of an estate of a person who died without a will.

The person most closely related to the person who died has the biggest preference in being appointed the administrator of their estate. Here is the order of preference of becoming an estate administrator :. If no relative steps forward, then the public administrator of the county where the decedent lived steps forward and becomes the administrator of the estate.

The public administrator is also involved in any estate where the administrator is a cousin, niece or nephew or further relationship to the decedent. An administrator can also be appointed if the executor originally named in the will is not available, when the executor either cannot be found, died, cannot or do not want to serve as the executor of estate or executor of will. They look something like this:. This is what a Certificate of Appointment of Administrator would look like:.

A female administrator used to be called administratrix and a female executor used to be called executrix but that definition no longer plays a role, as that distinction has been eliminated by the courts in favor of gender-neutral language.

It is now against court rules to refer to someone as administratrix or executrix, only executor or administrator is allowed. Administratrix and executrix are terms that only pop up occasionally, in older wills that were executed before this court rule went into effect.

Once an executor or administrator is appointed by the court, they can start performing their duties in accordance with New York law. The duties include things like finding marshaling the assets of the decent, paying debts taxes and fees and distributing the assets in accordance with the will. It is important to perform those functions correctly, so that all beneficiaries receive their shares and all proper creditors get their claims satisfied.

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