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Unraveling the Responsibilities of Estate Administrators

Writer's picture: Sorich LawSorich Law

When a loved one passes away, it can leave family members and friends devastated. An estate executor or administrator will need to take care of the legal and financial issues pertaining to the estate and handle the distribution of assets to beneficiaries. The administrator of an estate is a designation made by the court in situations where the decedent did not have a will, they did not name an executor, or when the executor is unable to serve. The court approves a named executor or designates an estate administrator to handle the matters of the estate of the decedent through probate. 


The Role of an Estate Administrator


The estate administrator has many duties. The administrator oversees the estate of the deceased person, handling assets and debts as well as distributing them to beneficiaries. Washington State Legislature (RCW 11.18.200) defines the general powers and duties:


It shall be the duty of every personal representative to settle the estate, including the administration of any nonprobate assets within control of the personal representative..as rapidly as possible, without sacrifice to the probate or nonprobate estate. The personal representative shall collect all debts due the deceased and pay all debts as hereinafter provided. The personal representative shall be authorized in his or her own name to maintain and prosecute such actions as pertains to the management of the estate, and may institute a suit to collect any debts due the estate or to recover any property, real or personal.


Prepare an Inventory and Appraisals


The estate administrator is to prepare an inventory. Under the latest Washington law, the administrator is not required to provide an inventory to the court unless a person who has an interest in the estate requests one. While it is not a legal requirement, an inventory will be of great help when handling estate matters. You will need to know what assets belong to the decedent before you can determine what to do with them. 


After listing all assets and debts, the administrator must determine their value. This can sometimes be complex and time-consuming. Some assets may require formal appraisals by professionals. For example, art collections, vehicles, and real property, such as homes, require current value for the purpose of distribution or sale. The administrator may pay professionals as necessary from the bank account of the estate.  


Open Bank Accounts for the Estate


In order to make and receive money on behalf of the estate, it is best to open new bank accounts. A checking account is a way to keep track of all funds that enter and leave the estate under your control. It is a viable method to ensure that the funds are properly accounted for. In addition to a checking account, you may want to open a savings account or money market account to put aside funds that will later be part of distributions. This provides interest on money during the probate process. 


Collect Debts Owed the Estate


The estate administrator must identify and collect all debts owed to the deceased. The administrator has the power to take action to collect debts on behalf of the estate. If you learn of any outstanding monies owed to the decedent, you should immediately request the funds in writing. If the debts are not paid, you may take further action to obtain them, including legal action if necessary. An attorney may assist you in collecting funds owed to the estate. 


Probate Notice to Creditors


The estate administrator must notify creditors of the death of the account holder. The Probate Notice to Creditors is a form that the administrator fills out and files with the court and may publish in newspapers. A copy may be published in the local newspaper in the town where the decedent resided. The notice to creditors must contain specific information per the legal requirements outlined in the legislature. A knowledgeable estate attorney can help you through this process to ensure that it is completed properly. 


Creditors have a maximum of four months to submit a claim for payment to the estate. As long as the claim is made within the allotted time period and is legitimate, the administrator is required to pay the debt. Payment is made from the estate funds. If a claim is made after the statute of limitations has expired, the claim is not to be paid. 


Take Care of Taxes


The administrator must file taxes on behalf of the decedent’s estate. Taxes may include individual state and local income taxes as well as taxes owed by the estate itself. The filing of taxes can be complex and often requires assistance from a professional. When the administrator hires a CPA, attorney, or other professional to handle issues in regard to the estate, the bill is paid from the estate funds. All taxes need to be resolved prior to closing out the estate and making distributions to beneficiaries. 


Make Distributions


Distributions are to be made to beneficiaries once the estate is resolved. There are two main types of distributions - preliminary and final. 


Preliminary distributions are those made before the final distribution and estate closing. The only time you may provide a preliminary distribution is when you are certain of the finances of the estate after all debts have been paid. A preliminary distribution may be beneficial to the estate in some cases. In general, you must obtain permission from the court to make a preliminary distribution. 


After you complete all the tasks associated with the estate, including payment and receipt of debts, you may provide final distribution to the legal heirs. Once the final distribution is made, the estate can be closed, and the job of the estate administrator is done. 


Legal Guidance for Estate Administrators


The role of an estate administrator is an important one and requires integrity. The court and the beneficiaries rely on the estate administrator to handle all aspects of the decedent’s estate in a proper manner. Although legal representation is not required, an estate administrator may be more comfortable in the role with guidance from an experienced estate or probate attorney. Your lawyer will answer your questions and assist you throughout the probate process to ensure a satisfactory completion. 


To learn more and to get legal guidance from our experienced team, contact us at View Ridge Family Law & Estate Planning at (206) 237-5604 to schedule a consultation. 








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