Estate Administrator's Duties in Estate Inventory
· 2 min read
Who can serve as estate administrator
The estate administrator is usually the estate shareholder who has possession of the estate's property and best knows the estate's situation. In practice, this is often the surviving spouse or the deceased's adult child. The shareholders can also jointly choose an external person, such as a lawyer, as estate administrator. The court can appoint an estate executor upon application if the shareholders cannot agree on the estate's administration.
Key duties
The estate administrator's main duties are safeguarding and managing the estate's property, arranging the estate inventory within the deadline, compiling required documents, inviting shareholders to the estate inventory event, preparing the deed and submitting it to the Tax Administration, and handling the estate's routine matters. In practice, the administrator pays the estate's bills, notifies authorities of the death, and manages lease and insurance matters.
Estate executor vs. estate distributor
An estate executor is a person appointed by the court under Chapter 19 of the Code of Inheritance who takes over the estate's administration. They determine the estate's assets and debts, pay debts, and prepare the estate for distribution. An estate distributor carries out the actual inheritance distribution under Chapter 23 of the Code of Inheritance. Appointment of an executor and distributor is applied for from the district court and comes into question particularly in disputed estates.
Responsibilities and obligations
The estate administrator has a duty of care in estate administration. They must act in the interest of all shareholders and may not favour one shareholder at the expense of another. The administrator is responsible for ensuring the estate inventory is conducted on time and the deed is truthful. Negligence can result in liability for damages towards other shareholders. Professional estate administrators in particular have an enhanced duty of care.
Estate administrator's fee
If a shareholder themselves serves as estate administrator, a separate fee is usually not paid. A professional's fee is an estate expense paid from the estate's assets. The fee depends on the estate's scope and workload — typically from hundreds of euros to several thousand euros. A court-appointed estate executor's fee is based on reasonable compensation for work performed. The reasonableness of the fee can be assessed by the court if the shareholders consider it too high.
Frequently asked questions
Who can serve as estate administrator?
Any estate shareholder or an external person jointly chosen by the shareholders can serve as estate administrator. Often the surviving spouse or the deceased's child takes on the role, as they best know the estate's situation. Alternatively, a lawyer or other legal professional can be appointed as estate administrator, particularly when the estate is large or shareholders disagree. The court can also appoint an estate executor if the shareholders cannot reach an agreement.
What does an estate administrator actually do?
The estate administrator's duties include managing the estate's property, handling routine matters such as paying bills, arranging the estate inventory and compiling documents. The estate administrator also ensures the deed is submitted to the Tax Administration and is responsible for informing shareholders about the estate's situation. In larger estates, the administrator may handle property maintenance, lease management, and investment management until the inheritance distribution.
What is the difference between an estate executor and an estate distributor?
An estate executor is a person appointed by the court who takes over the estate's administration in place of the shareholders. The executor's task is to determine the estate's assets and debts and prepare the estate for distribution. An estate distributor, on the other hand, is a court-appointed person who carries out the actual inheritance distribution among the shareholders. The same person can serve as both executor and distributor, but the roles are legally separate.
Can the estate administrator make decisions alone?
The estate administrator's authority depends on their position. In joint estate administration, all significant decisions require all shareholders' consent. However, the administrator can handle routine matters, such as paying bills and property maintenance, without separate consent. A court-appointed estate executor has broader authority — they can independently take necessary actions for estate administration, including selling property to cover debts.
Does the estate administrator receive a fee?
An estate administrator agreed upon among the shareholders does not usually receive a separate fee unless otherwise agreed. If a professional such as a lawyer is appointed as estate administrator, they charge a fee from the estate's assets. A court-appointed estate executor receives a fee based on the workload and the estate's scope. The fee is an estate expense deducted from assets before inheritance distribution. The reasonableness of the fee can be assessed by the court if necessary.
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