Who can act as administrator of an estate?

Who can act as administrator of an estate?

Generally, to become an administrator of an estate, individuals must meet specific legal criteria. While anyone can act as an administrator/ personal representative, they must adhere to certain requirements. 

Firstly, the individual must be over 18 years of age, they must have mental capability and not be bankrupt. These qualifications ensure that the administrator can effectively manage the deceased person's estate in accordance with legal obligations. If a personal representative is unable to complete the administration of the estate, alternative rules may apply to determine who is entitled to continue their work, ensuring the orderly resolution of the estate's affairs.

An administrator is an individual appointed to handle the estate of a deceased person in cases where there is no valid Will. According to The Non-Contentious Probate Rules 1987, administrators are designated based on a predetermined order of priority. 

They are responsible for applying for the grant, known as 'grant of letters of administration,' to establish their authority over the estate. Administrators are tasked with distributing the estate to beneficiaries entitled under the rules of intestacy, which outline the order of individuals eligible to apply for the grant. 

This includes the spouse or civil partner of the deceased, children, parents, siblings, grandparents, aunts, uncles, and cousins. In cases where no eligible family members exist, the Treasury Solicitor may claim the estate as 'ownerless assets.' Additionally, creditors may also apply for the grant to recover debts owed by the deceased.

What does the administrator do?

From the date of death until the transfer of assets to the beneficiaries, the personal representative (administrator) oversees what is known as the 'administration period.' During this time, several key responsibilities must be fulfilled:

Debt settlement: One of the primary duties involves addressing any outstanding debts left behind by the deceased. This may include payments for loans, mortgages, or outstanding bills and debts.

Asset management: The personal representative is tasked with managing and, if necessary, selling assets such as properties or shares belonging to the estate. This ensures that the estate's assets are properly handled and distributed in accordance with the deceased person's wishes or applicable laws.

Tax obligations: Throughout the administration period, the personal representative must navigate various tax obligations. This may involve paying Income Tax on sources like rental income, business profits, or investment interest. Additionally, Capital Gains Tax may apply to profits derived from the sale of shares, investments, or property.

Probate application: In some cases, the personal representative may need to apply for probate, a legal process that confirms the validity of the deceased person's Will and grants the authority to administer the estate.

Reporting requirements: The personal representative is responsible for providing comprehensive reports on the estate's value, income, and tax liability to HM Revenue and Customs, ensuring compliance with relevant tax laws and regulations.

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