A third party administrator situation may arise when there is no executor appointed in a will for a deceased person, or if the executor has died, become physically or mentally incompetent, refused to carry out the duties of executor, or is in any other way unable to carry out the responsibilities of administrator of the estate in question. Other people can then make application to the courts to become the administrator of the estate and responsible for the assets and liabilities of the estate. This is usually one or more of the people who are named as beneficiaries of the estate, but may include other interested or affected parties.
The process for setting up an administrator usually takes the following steps: checking the death certificate to determine jurisdiction, this is normally the county in which the deceased resided, checking the will to make sure it is the original and final copy, determining if there is executor named in the will, and if they are living and willing to assume the duties of executor is in the will, determining the third party administrator by the residuary clause, listing all next-of-kin with names, addresses, and ages, listing all the assets that are in the deceased name alone, and determine the value of these assets for the purpose of securing a surety bond.
Appointing an administrator cannot normally occur until a ten day grace period has elapsed in order to allow all persons to file their proof of kinship to the deceased. After this period, the courts can issue a notice of appointment of an Administrator that is filed along with the original will, a copy of the death certificate, and avadavats or certificates that show the reason that an originally named executor is unable or unwilling to fulfill their responsibilities to the estate.
In order to be recognized as an executor by the courts, an administrator must complete and sign a surety bond as principal which must be duly witnessed in accordance with the procedures of the courts. The administrator can then begin to pay all outstanding funeral expenses, as well as any documented and outstanding creditors and taxes. They also can begin to distribute the proceeds of the estate as stipulated by the will. Once these duties have been completed, they can apply to the courts to have the surety bond released.
A third party administrator plays an important role that can help to carry out the dispersal and disposition of the estate of a deceased person. They may be an attorney or they may be assisted by an attorney. They are responsible to the courts to ensure that these matters are handled with efficiency and in an effective manner. They in fact become temporary officers of the court and are responsible for reporting back to the court at regular intervals and if any irregularities arise in the performance of their duties. Their work is guaranteed by a special form of surety bond that offers both the courts and the families of the deceased the comfort that these matters will be properly carried out.
To learn more about what it means to be an independent third party administrator, or to apply visit us at www.bfbond.com.