Estate administration requires a reliable and trustworthy administrator. An administrator has many duties that must be performed timely, with integrity and with diligence. If an administrator fails to perform their duties, the estate and the beneficiaries may suffer damages. Those that feel trapped by a failing administrator have legal options.
What is an Estate Administrator, and What Are Their Responsibilities?
An estate typically involves three roles: the testator/decedent, the beneficiaries, and the administrator. A testator is the original owner of the assets of the estate and makes a will providing what will become of those assets after his death. One who dies without a will is not a testator. Rather, they are a decedent who leaves an intestate estate. The beneficiaries inherit the assets of the estate after the testator passes away. Once the testator passes, the estate administrator becomes the legal representative of the deceased person.
The responsibilities of an administrator typically include, among other things, controlling the assets during estate administration, paying the testator’s debts and taxes, and distributing the assets to the beneficiaries.
Gather and Appraise Assets
The administrator must gather and appraise all the assets in the estate, including property, real assets, trusts, securities, inventory, and investments, among others. This process can be simplified if the testator inventoried his assets before his death.
Pay Debts and Taxes
The administrator must also pay debts and remaining taxes for the deceased.
Distribute the Assets
Finally, the administrator will distribute the assets to the beneficiaries in accordance with the intention of the deceased or, if the decedent did not make a will, according to the relevant statutes of descent and distribution.
What are the Fiduciary Duties of an Estate Administrator?
An administrator of an estate is a type of fiduciary — a party that acts on behalf of another person or persons. Therefore, administrators are obligated to the fiduciary duties of loyalty and care. The fiduciary duty of loyalty means that a fiduciary must act in the best interest of the party he represents. The fiduciary duty of care requires that the administrator must generally act in good faith and with integrity, as if they were administering their own estate.
If an administrator fails to act diligently, or is self-dealing, this is a breach of his fiduciary duties and is often the cause of common disputes.
What are Some Common Disputes in Estate Administration?
Self-Dealing and Conflict of Interests
Stealing or self-dealing from an estate can take many forms. An executor might charge excessively high fees, fail to document all assets or receive a “kick-back” for investing trust funds in certain assets. A fiduciary may not delay transferring assets to a beneficiary in order to increase his fees, or make a loan to himself from trust assets.
Mismanaging the Estate
If the administrator fails to manage the estate in accordance with the will, this may cause a dispute between the administrator and the beneficiaries. Failing to manage the estate with the same level of care that the testator might have is a common reason for estate disputes.
What to Do If You Are in an Estate Dispute with Your Estate Administrator
If you find that the administrator of your loved one’s estate is engaged in self-dealing or is mismanaging the estate, there are options. With the proper estate litigation attorney, you can fight to have the administrator held liable for financial loss, to receive reduced or denied compensation, or to be removed from the estate altogether.
The attorneys at Gaslowitz Frankel LLC are the premier fiduciary litigators for the state of Georgia. We can walk you through the litigation process while easing your mind from the stress that estate disputes can bring. Fill out our contact form for a free consultation.
