Estate administration is the process of compiling and managing a deceased's assets, settling any debts and distributing the remaining assets to the rightful Beneficiary/ Beneficiaries. It is extremely important to ensure the deceased’s assets reach the rightful Beneficiary/ Beneficiaries speedily to prevent any injustice to or needless hassle for anyone.
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.
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 Administration FAQ
1. 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 and bank savings accounts books;
infighting or lack of co-operation among the deceased’s Beneficiaries, such as non-attendance at meetings and court hearings; and
the death of any Beneficiary, Executor or Guardian will further complicate estate administration.
2. Can an individual be appointed as an Administrator of an Intestate Estate?
Yes, there must be at least two Administrators (individuals) or a Trust Corporation if the Beneficiary is a minor.
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 individuals must ensure that the Administrator carries out the administration work responsibly.
However, if a Trust Corporation, such as Pacific Trustees, is appointed to be the Administrator, no administration bond is required.