The Legal Distinctions Between Executors and Administrators in New York
If you’ve ever been to court after someone’s death, you’ve probably heard the terms executor and administrator. While these roles may seem similar, understanding the difference between executor and administrator is crucial for anyone involved in the management of a deceased person’s estate.
When a person dies in New York, the court appoints someone to manage their assets and property. If the deceased left a will and named an executor, that person takes on this role. However, if the deceased died without a will or their will was deemed invalid, the court appoints an administrator to handle their estate. This delineation underscores the fundamental difference between executor and administrator, as it ties directly to the presence or absence of a valid will.
While a person appointed to serve as an executor can assume their duties immediately upon being notified by the court, administrators must wait for the issuance of letters of administration before they can take on their responsibilities. This is because the court will want to ensure that the person seeking the role of administrator is actually entitled to it. The difference between executor and administrator here lies in the immediacy with which they can begin their duties, highlighting the streamlined process for executors who are named in a will.
In order for the court to grant letters of administration, the potential administrator must prove their eligibility by submitting an affidavit. This affidavit will need to provide information about the person’s family history. In addition to showing a clear family connection, the court will also likely require proof of their identity. This can often include a photo ID and birth certificate. The court may also ask for additional documents in cases where the person seeking to be an administrator is not a direct relative of the deceased. This can include a detailed family tree and further proof of kinship. The requirement for such documentation further explains the difference between executor and administrator.
Another important difference between executor and administrator is that the former can typically serve without a bond, while the latter is required to post one. This requirement is a result of the different processes by which each fiduciary must go through to obtain their authority to act on behalf of the estate. A bond is an insurance policy against theft or mismanagement of the estate’s assets and property. Most standard wills explicitly state that the executor of an estate can serve without a bond, while the courts are more likely to impose a bond on an administrator. This difference highlights the additional safeguards involved in the appointment of an administrator, emphasizing the need for careful planning and selection of a capable fiduciary to manage an estate efficiently.
Choosing Between Executor and Administrator in New York
The executor and administrator duties can vary depending on the size of the estate. Generally, they must settle the estate by paying debts and taxes, selling any assets that are not in the will, and distributing the proceeds from those sales to beneficiaries. They also must handle any legal proceedings that may come about in the process. Understanding the difference between executor and administrator is crucial as this is not an easy job and it requires someone who can be very organized. The duties are also complicated because executors and administrators must act with fiduciary responsibility towards beneficiaries, which can sometimes lead to conflict. If a conflict cannot be resolved, it is possible to reject the appointment or step down as executor or administrator before the process starts. An experienced administrator and executor attorney can help with these tasks.
The difference between executor and administrator is that executors are designated in a will, while administrators are appointed by the court when there is no will or the executor named in the will is unable to serve. This can create issues of trust and delays in the administration process. Generally, the court will choose the spouse of the decedent or another close relative of the deceased to serve as the administrator. If there are multiple parties vying for this role, statutes will determine the order of priority of selection. An administrator must collect the estate’s assets and record them. They must notify all interested parties and pay any state, federal, or property taxes that are owed by the deceased person. They must also take inventory of any assets that have been sold and distribute the remaining proceeds to heirs. This complex task highlights the difference between executor and administrator in terms of the scope and authority granted to manage estate affairs.
Both executors and administrators must have a high level of honesty and integrity. If the court finds that an executor or administrator is not qualified due to substance abuse, dishonesty, improvidence, a lack of understanding, or any other reason, they can be disqualified from serving in this capacity. The difference between executor and administrator is further evident as the courts can also require an administrator to post a bond, even if the will specifies that no bond is required. This reflects the differing levels of oversight and trust in each role.
It is always a good idea to consult with an estate planning attorney before making any decisions about the sale of estate assets. This can prevent any unintentional violations of the law or any disputes between family members about the sale. Moreover, understanding the difference between executor and administrator can help ensure that the estate is managed effectively and legally. In addition, we can assist with any other issues that may arise during the administration of an estate. If you would like to discuss your situation with a New York estate planning lawyer, please contact us.
When to Appoint an Executor or an Administrator in New York
When a person dies in New York, someone must become the executor or administrator of their estate. Understanding the difference between executor and administrator is crucial, as generally, the assets of the estate are distributed according to their wishes as laid out in the Will. If the deceased had no Will, the estate is administered under intestate law. Either way, the fiduciary must file a petition in the Surrogate’s Court in the county where the decedent lived to get the court’s approval to serve as the executor or administrator.
Whether the estate is small or large, it can be complex and time-consuming to administer. The fiduciary has a duty to collect all the estate’s assets, pay or compromise any debts or claims that relate to the estate, and prepare income tax returns for the estate. Additionally, the fiduciary must have access to the decedent’s safe deposit box, bank accounts, and other financial records. The responsibilities of an executor and an administrator are broadly similar, yet the difference between executor and administrator becomes apparent in the scope of authority and the manner in which they are appointed.
In many instances, the surviving spouse will serve as the fiduciary of the estate. However, if there are other children or family members who may have interests in the estate that conflict with those of the surviving spouse, it is sometimes best for that person to serve as the executor in conjunction with another person – such as a business partner or trusted friend – to avoid any conflicts of interest. This setup often reflects the specific difference between executor and administrator roles, especially in handling potential conflicts within the estate.
How to Become an Administrator or Executor
In cases where the Will is probated, the testator (deceased person) will nominate their choice of Executor and successor Executor. The testator can also waive commissions and serve as fiduciary without being entitled to any compensation from the estate. However, if the person named as the Executor is deceased or disqualified from serving in that capacity because of a felony conviction or similar reasons, the court will need to decide who should be appointed. This highlights another difference between executor and administrator, as the executor's role is specifically detailed in the will, unlike the administrator’s role, which is determined by the court under intestate circumstances.
When a deceased person dies intestate, the estate will be distributed by the court in accordance with New York state law. The person chosen to serve as the administrator will need to be appointed by the court, based on an order of priority set forth in SCPA 1001 – beginning with a surviving spouse and moving down the list of statutory next-of-kin. This order of succession underlines the difference between executor and administrator, as administrators are selected based on statutory guidelines in the absence of a will.
Anyone interested in becoming the administrator or executor of a deceased person’s estate should consult an experienced estate planning lawyer. We can assist the persons in petitioning the court to become a fiduciary of an estate and handling all the details of the administration process. Contact us today for a consultation.
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