Estate Administration and Independent Administrators Explained

What is Estate Administration, and when might you need an Independent Administrator?

Estate administration is the legal process of dealing with a person’s assets (and liabilities) after they have died. Where the deceased left a Will, the responsibility falls on the executors. If a person dies intestate (without a Will) then their closest relatives will usually become the administrators.

Often, a grant of representation is needed before assets in the estate can be dealt with. Where there is a valid Will, the executors usually apply for a Grant of Probate. Where there is no Will, or where no executor is applying, the court may issue Letters of Administration. Both forms of authority are commonly referred to as “probate”.

The probate process can be straightforward, but it can also become complex. The length of the process varies significantly depending on factors such as the number and nature of the assets and debts, any tax obligations, and how quickly third parties provide information or co-operate.

Executor responsibilities:

Some of the key responsibilities of an executor include:

• Locating the original Will (and ultimately, submitting the Will for Probate)
• Protecting the deceased’s property
• Establishing the estate assets and liabilities
• Calculating the value of the estate for probate and for inheritance tax; paying any tax due
• Paying any debts/expenses and ultimately, distributing the estate to the beneficiaries

Executors should also maintain clear estate accounts, including records of transactions, expenses and any income received during the administration period.

A solicitor specialising in estate administration can assist with some or all of these tasks, including applying for probate on behalf of the executor or administrator and dealing with the administration of the estate where instructed.

Where there is no Will, a similar process is followed, but the first step will be to establish who has legal authority to become the estate’s administrator. The law dictates the order of priority for this, but issues may develop where a number of people are equally entitled to apply, where there is mistrust between them, or where someone does not agree with a proposed appointment. In these circumstances, an independent third party may need to become involved.

What is an independent administrator?

The term “independent administrator” is used to describe an individual or trust corporation appointed or approved by the court to act as a professional personal representative of an estate. In practice, this will often be a solicitor or trust corporation with experience of complex or disputed probate matters.

Disputes surrounding estate administration are common and can quickly become difficult to manage. Family members may disagree about how specific assets should be dealt with, whether information is being shared properly, or whether the estate is being administered fairly.

Even where there is a Will, an independent administrator might be appropriate if:

• Executors are unable or unwilling to deal with the estate themselves
• Executors cannot work together or have a conflict of interest
• There is an allegation of misconduct, and/or a breakdown in trust between executors and beneficiaries
• There have been unnecessary/unreasonable delays in dealing with the estate
• Someone is contesting the Will

Where a dispute prevents the estate from moving forward, appointing an independent administrator may provide a practical way to progress the administration.

An independent administrator must remain impartial and act in the best interests of the beneficiaries. Taking the estate administration out of the hands of family members can help reduce tension, restore confidence in the process and lower the risk of further disputes.

Who can apply to remove an executor?

An independent administrator can be appointed at different stages of the probate process, and this often happens after estate administration has already begun. Even where a grant has been issued, it may still be possible to remove or replace executors who are unable or unsuitable to continue managing the estate properly.

The process may be started by an executor, a beneficiary or another person with sufficient interest in the estate, such as a creditor. If someone is concerned about how an estate is being handled, or if there has been a breakdown in trust, the appointment of an independent administrator may provide a sensible and practical solution.

What is the process?

The process usually requires an application to either the High Court or the Probate Registry. A proposed administrator is identified and must agree to accept the appointment.

If there is disagreement between the parties, a court hearing may be necessary. If everyone agrees on the appointment, this can save time and costs. Where agreement cannot be reached, a nomination may be made by the President of the local law society or by the Chair of the local STEP branch.

Depending on the court order, the independent administrator may need to do a full application to the probate registry in order to obtain a grant of representation. This will involve conducting an independent investigation into the assets and liabilities of the estate, before an application for Letters of Administration can be made.

Appointing an independent administrator can take some time and where the probate process has already begun, it will inevitably stall the estate administration. Where a solicitor or trust corporation is appointed, there will be professional fees involved.

However, in many cases, the benefits of appointing an experienced independent administrator will outweigh the additional cost to the estate. Where relationships have broken down or the administration has stalled, an independent appointment may be the most effective way to move matters forward, finalise the estate and distribute it to the beneficiaries.

PCS Trust Corporation

PCS Trust Corporation can act as independent administrators where appropriate. The directors of PCS Trust Corporation are all partners at Private Client Solicitors and are all STEP qualified, experienced specialists in wills, trusts and estate administration. We are also members of the National Association of Independent Administrators.

If an independent administrator is required, PCS Trust Corporation can be appointed to take over the administration of the estate and progress matters professionally, impartially and efficiently.