Being named as the administrator of someone’s estate comes with responsibility. You’re essentially taking charge of their financial affairs after they’ve died, making sure debts are paid and that anything left reaches the right people. But what does an administrator actually have to do?
Finding Out What’s in the Estate
Before anything can be distributed, the administrator needs to build a clear picture of the estate. That means tracking down assets such as bank accounts, savings, investments and property, as well as finding out about any money the person owed. Some assets will need to be valued, particularly if inheritance tax could be an issue.
Applying For Legal Authority
In many cases, the administrator will need to apply for letters of administration. This gives them legal authority to deal with the deceased’s assets. Banks and other organisations may ask to see the grant before they’ll release money or allow accounts to be closed.
Paying Debts and Dealing With Taxes
Beneficiaries can’t simply be paid as soon as money becomes available. Funeral costs, outstanding bills, debts and any tax due generally need to be dealt with first. It’s also important to keep proper records. Estate accounts should show what came into the estate, what was paid out and what was eventually distributed. GOV.UK confirms that debts and taxes must be settled and warns that distributing assets before ensuring debts can be paid may leave the personal representative responsible.
Distributing The Estate
Once everything else has been sorted, the remaining estate can be passed to the beneficiaries. If there isn’t a valid will, the administrator must follow the rules of intestacy. They don’t get to choose who inherits or change the shares because they think a different arrangement would be fairer. GOV.UK confirms that where there is no will, the estate must be distributed according to the law rather than personal choice.
It can be a time-consuming role, and administrators need to take care. Distributing money too early or overlooking a debt can cause problems later – and, in some circumstances, could leave the administrator personally liable.
Read more information on professional estate administration, probate myths and executor duties. Explore our latest guides for practical advice on managing an estate, dealing with probate, post-grant administration and professional estate administration.
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