When a person dies, his or her estate needs to be collected and managed. The deceased’s estate may comprise both movable and immovable assets after deducting all lawful liabilities due and owing to third parties.
Estate administration refers to the process of transferring properties held by the deceased to the rightful beneficiaries or other interested parties. It involves gathering the assets of the estate, paying the decedent’s debts, and distributing the remaining assets.
Estate administration is a very time-consuming and tedious job and requires professionals to handle it. Without a basic understanding of the estate administration process, the whole experience can be pretty overwhelming.
Administration of the deceased’s estate is therefore extremely important to ensure his assets reach the rightful beneficiariesspeedily to prevent any injustice to or needless hassle for anyone.
Executor (Testate Estate)
Estate Administration takes effect upon the Testator’s death. The executorship fee shall be imposed based on the gross asset value of the Testator’s estate (movable and immovable properties). Such fees are charged upon the extraction of Grant of Probate which will incur additional legal fees.
Professional Administrator (Intestate Estate)
Estate Administration takes effect upon the Testator’s death. The administration fee shall be imposed based on the gross asset value of the Testator’s estate (movable and immovable properties). Such fees are charged upon the extraction of Letter of Administration which will incur additional legal fees. If a Trust Corporation, such as PTB, is appointed, no administrative bond by two Sureties is required.
Estate Administrator FAQ
FREQUENTLY ASKED QUESTIONS
- Can I appoint an individual to be the Executor/Trustee of my estate?
Yes, you can. However, it’s preferable to appoint a trust corporation as an individual may
- be incapable to perform as estate administration is a complex process for someone who doesn’t have the expertise and experience
- predecease the Testator or is unwilling to act as estate administration is a very tedious process
- commit fraud and breach of trust by absconding with the assets
- be bias to certain parties
- Why is Estate Administration such a complex and tedious process?
Estate Administration can face a number of complications such as:
- No Executor or Administrator appointed to administer the deceased’s estate
- Missing essential documents such as death certificate, land titles, property titles, bank statements, bank savings books, etc
- Infighting or lack of co-operation among the deceased’s Beneficiaries, such as non-attendance at meetings and court hearings
- The death of any Beneficiary, Executor or Guardian will complicate estate administration.
- Can an individual be appointed as the Administrator of an Intestate Estate?
Yes, you can. However, there must be at least two Administrators(individual) or a Trust Corporation if the beneficiary is a minor.
- Is there any other requirement if individuals are appointed as Administrators of an Intestate Estate?
To apply for the Letter of Administration:
- Two persons must act as Sureties – each of their administration bonds must be equivalent to the deceased’s gross estate value.
- Both persons must ensure the Administrator carries out the administration work responsibly.