Responsibilities of an Administrator Over an Estate in New York
Once a person has passed on, his estate becomes what amounts to a legal entity in the state of New York. The responsibility for fulfilling the final wishes of a person who died without a will falls on the administrator. In New York the court will take it upon itself to name a responsible party, following a hierarchy that begins with the spouse, then the children, then other relatives. Because of the finances and personal feelings so often involved in settling an estate, the role of the administrator cannot be overstated.
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The Deceased's Assets
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First and foremost, the administrator of an estate in New York is required to search for and then gather all of the deceased's assets. Once the other responsibilities of the estate are satisfied, whatever is left is then distributed to the heirs. In New York, there is a list of heirs with a surviving spouse, children and grandchildren at the top. If no spouse or children are alive, the parents of the deceased and ultimately brothers and sisters are next in line for receiving assets when they are distributed.
Debt Payments
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Once the assets have been gathered, the administrator must secure an estate tax identification number from the IRS and open an estate account. At this point the state of New York will require the administrator to settle all outstanding debts owed by the deceased. The court responsible for settling the estate will require notices to be sent to debtors, and allows at least seven months for them to respond. Only then can the administrator move forward with the next step in the process.
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Tax Issues
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After the administrator has settled the estate's outstanding liabilities, he may be required to pay estate tax. What, if any, estate tax is due will be based upon the size of the estate after liquidating assets and paying down outstanding debt. For larger estates this can be a significant figure and it may be valuable to consider the assistance of an attorney well-versed in estate tax laws and regulations. Once the tax is paid, whatever is left is distributed to the heirs.
Personal Issues
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Because an administrator is appointed only in instances of a person dying without a will or trust, there is the distinct possibility of heirs and potential heirs becoming angry and frustrated. An important role of the administrator is to try and mitigate these concerns as best she can. If she is unable to do so, there is the very real possibility of disgruntled heirs hiring attorneys or mediators. This can add a great deal of time and money to an already difficult process.
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References
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