Duties Of An Estate Executor & Administrator |
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Duties Of An Executor & Administrator Of An Estate
What Is An Estate?
When a person passes on, he may leave behind assets which he owned.
These assets are called his estate and may include immovable
properties such as land, house or flats, and movable properties such
as bank savings, stock, unit trusts, club memberships, and jewellery.
Someone has to be appointed by the Court to take charge of the
deceased's estate and distribute it to those entitled to it, the
beneficiaries.
Duties Of An Executor Or Administrator
An Executor is a person appointed by the deceased under his Will to
administer and distribute his estate. It is useful to consider the
appointment of a trusted financial adviser as an Executor under a
Will in view of the fairly extensive duties involved in
administering an estate. The consent of a financial adviser should
be sought and the Will should provide for the fair remuneration of
the financial adviser for undertaking the duties involved.
If the deceased died without having made a Will, someone has to be
appointed as an Administrator to take charge of the estate.
The practical duties, roles and responsibilities of an Executor or
Administrator vary with the size and nature of the estate and for an
Executor, the provisions of the Will.
Some of the duties of an Executor or Administrator are as follows:-
·
Make the necessary funeral
arrangements, if so directed.
·
The Executor should
examine the terms of the Will to identify his duties generally.
·
Meet with the family of
the deceased for general discussion concerning their immediate
financial needs.
·
Locate bank sage deposit
accounts, conduct inspection of contents of safe deposit boxes and
make an inventory list.
·
Obtain and examine
financial records, bank statements, income tax returns, real estate
title deeds, cheque books and business papers generally, and to
secure complete particulars of assets and liabilities of the estate.
·
Safeguard and protect
valuable belongings of the deceased in his home.
·
Estimate cash requirements
of estate to pay debts, estate duties, legacies, and administration
expenses,
·
Pay off credit card debts
to prevent interests from accruing,
·
Lodge life insurance
claims with the insurers, and obtain partial settlements allowed by
law.
·
Arrange for transfer of
any vehicles, if necessary.
·
Cancel any subscriptions
or services that may not be applicable to the family of the
deceased.
·
Estimate total value of
the assets of the deceased less liabilities.
·
Prepared and file income
tax returns of the deceased. Contact the Inland Revenue Authority of
Singapore regarding any outstanding liability for tax or arrange for
refund of any overpayments.
·
If an Administrator, he is
to draw up a name list and personal particulars of next-of-kin of
the deceased who are potential beneficiaries.
·
Appoint a lawyer to apply
to Court for Grant of Probate or Letter of Administration to
administer and distribute the estate. Please see the headings below
for the relevant information and issues invloved.
·
Obtain through a lawyer
assessment and clearance of any estate duty payable to the Inland
Revenue Authority of Singapore.
·
Arrange for audit of
estate's account and submit statements to the beneficiaries. If
necessary, consults a financial adviser.
·
Consult a financial
adviser as to how best to resolve payment of insurance proceeds and
other assets of the estate.
·
Consult and appoint a
financial advisor to advise on management of estate in case of
minority interests or where trust provisions apply under the Will.
·
Distribute residue of
estate to the beneficiaries or if there are trust provisions under
the Will, establish proper records for administration of the trust.
Grant Of Letters Of Administration
If the deceased died without having made a Will, an application has
to be made for a Court order called Grant of Letters of
Administration authorising the person(s) named to administer the
estate according to the Intestate Succession Act.
The law gives priority to certain family members over others,
depending on the marital status of the deceased and his family
composition, to be appointed as an Administrator. If the deceased
was married with children, his spouse will have priority over the
children to be Administrator. If the deceased was single, his
surviving parents will have priority over his siblings to be
Administrators.
If there is any beneficiary who is below 21 years old, there needs
to be at least two Administrators to be appointed in order to
protect the minor beneficiary's interest in the estate.
Court Process
If the value of the estate exceeds S$3 million, the application is
to be made to the High Court. If the value of the estate is less
than S$3 million, the application is to be made to the Subordinate
Courts. An application should be made within six months after the
death of the deceased, otherwise if estate duty is payable on the
estate, Interest will accrue at 5%per annum on the estate duty
levied.
In order to tile the application in Court, the Executor or
Administrator has to provide a list of assets and liabilities with
supporting documents and relevant information to the lawyer
concerned. The original death certificate and Will, if any, are also
to be provided as these documents have to be sent to and verified by
the Court.
Once the application is granted by the Court, before the Grant of
the Probate or Letters of Administrator has to settle estate duty
matters and in the case of Letters of Administration, execute an
Administration Bond with two sureties, of applicable. If sureties
cannot be provided, a separate Court application to dispense with
this requirement would be needed.
Obtain Guidance And Assistance
The Executor or Administrator should seek legal advice for the
following reasons :-
·
The Will may contain terms
and clauses the implications of which an Executor may not fully
understand. An Administrator will need to know who the beneficiaries
are who are entitled under intestacy.
·
The estate of the deceased
may be complex.
·
The application to Court
to administer and distribute the estate entails legal procedures and
issues such as the preparation and filing of numerous documents, and
Court attendances.
·
Correspondences and
representations need to be made to the Inland Revenue Authority of
Singapore for estate duty matters.
·
If the estate of the
deceased comprises immovable properties overseas, there would be a
need to re-seal the grant of Probate or Letters of Administration
overseas.
·
The process of getting in
the assets and making distribution to the correct beneficiaries in
accordance with their respective entitlements under law and under
the Will may require legal advice.
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