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Who Gets To Be The Administrator Of An Estate?



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hey I'm Paul Rabelais and in this video

we're going to talk about who can be an

administrator of an estate alright so

this comes up from time to time came up

last week in my office so let's start

with the basics many estates of people

who pass away many of those states

require what I'm gonna call an

administration and administration of an

estate is necessary or required when

things need to be handled during this

time from the moment the person dies

until the estate runs through the court

process and assets ultimately are

dispersed to the heirs that doesn't

happen in one day sometimes it takes

months or years and so sometimes an

administrator needs to be appointed to

handle the administration of the estate

so you know again reasons

administrations are necessary sometimes

the deceased may have had a home or

property that needs to be sold during

the administration the administrator

would handle that sometimes people pass

away and they have debts that need to be

paid they have mortgages they have

credit card debt they have other debt

and that debts got to be paid while this

administration is going on so the

administrator you know collects the

funds and make sure the debts get paid

sometimes the administrator is needs to

hire lawyers and accountants to handle

things while the administration is going

on sometimes someone dies and their

investments need to be managed during

the period of the administration and

then sometimes a business owner will die

and so in an administration is necessary

to appoint an administrator to continue

the business operations of the business

that the deceased person owned so those

are just a few of the reasons why an

administration is necessary and if

someone dies and they have a will in

their will they're going to name their

executor so it's the executor who

handles the administration if someone

dies in an attempt to avoid probate and

they have a revocable living trust and

their assets are titled in the name of

there trust the person who will handle

that after the trust maker or trust set

lord eyes that title is called successor

trustee but of some of the eyes and they

got a bunch of stuff all over the place

and they have no estate legal documents

in place then they are considered to

have died intestate without a will and a

judge or a court will have to appoint an

administrator to handle the stuff that

needs to be handled while that

administration is going on so let me

give an example that really brings all

of this to light let's say let's call

him Big Shot so Big Shot died and he

never got around to doing any kind of a

state legal you know planning for

himself he was too busy he had a bunch

of wives he was on his third marriage he

had kids and grandkids he had kids from

his first and second marriage he's now

in his third marriage

or at least he was when he died he owns

several different pieces of property

with other property owners that he knows

his buddies

he owns a partial interest in some

businesses with some business partners

of his bigshot owes the bank big-shot

owes on some credit cards and after Big

Shot died it becomes fairly well-known

that Big Shot had this you know other

woman on the side will call her side

woman and she comes out in the shouts

from the rooftops

I can't believe Big Shot died he

promised he would take care of me so all

that stuff is going on so becomes pretty

obvious that there's there's things that

need to be handled so there's going to

be an administrator astray ssin of Big

Shots

estate or probate or in Louisiana

succession whatever you want to call it

so why would someone want to become an

administrator I think essentially two

reasons the first reason is

administrator compensation so the

administrator that's appointed by a

judge gets compensated for their efforts

out of the estate

we've got a provision on that and let me

make sure I get the wording just right

all right so here's our provision and

these are these are Louisiana procedural

rules I'm sure your state has something

similar but this'll at least give you

some guidance as to you know what

Louisiana and what another state might

do it says in our rules that the

administrator shall be allowed a sum

equal to two and one-half percent of the

amount of the inventory as compensation

for his services in administering the

succession so let's say Big Shot had a

really big estate let's say he had an

estate that was valued on his inventory

at ten million dollars well two and a

half percent of that is two hundred and

fifty thousand dollars so that's what

the administrators compensation would be

good work if you can get it so that's

one reason maybe why someone would be

want to be appointed as the

administrator but really I think that

the main reason someone would want to be

appointed as the administrator would be

that as the administrator they get to

protect whatever their interest is in

their estate maybe it's a child of

bigshot who isn't inheriting from

bigshot and is inheriting some of the

land and the business and the

investments and that child wants to be

appointed as the administrator so they

can you know make sure stuff doesn't go

away and stuff gets managed while all

this is going on maybe maybe bigshots

wife wants to be appointed as the

administrator for the same reason she

wants to make sure you know her interest

is protected maybe some of those

co-owners of property with Big Shot want

to be appointed as the administrator

because maybe some property now needs to

be sold or leased or whatever and and

that co-owner of property with Big Shot

as the administrator can handle that

kind of thing maybe one of Big Shots

business partners who owned a business

with Big Shot would want to be appointed

as the administrator so that that

business partner could continue to run

the business

and and run big shots portion of the

business as the administrator of big

shots estate so or maybe maybe one of

these lenders of Big Shot wants to be

appointed as the administrator so they

can make sure you know their their loans

are protected and they're going to get

paid back

maybe the side woman wants to be

protected because Peck

Big Shot said he'd take care of her so

all of those are are you know some of

the reasons why someone would want to be

appointed as an administrator now this

doesn't happen much because as you can

kind of tell from example there's a lot

of different moving parts and a lot of

different conflicting interests in big

shots estate but occasionally it happens

where when somebody dies some interested

person files a petition at the

courthouse to be notified when someone

applies to be appointed as the

administrator so any interested person

has the right to file you know the

appropriate procedural documents at the

courthouse and say hey if somebody

applies to be appointed as the

administrator I want to know because I

might want to oppose their application

so and then when someone does apply to

be appointed as the administrator they

are required to give notice to that

person who asked to be notified and then

there will be some hearing and when the

position of administrator is claimed by

more than one person there's a list of

you know who has priority to be

appointed as the administrator so let's

go over that all right so I'll see here

that one is gonna be radio okay so when

the appointment as administrator is

claimed by more than what's called one

qualified person and there are people

who just can't be an administrator

somebody who's under 18

somebody who's been interdicted or

declared incompetent that convicted

felons so there's a there's a list of

people who just flat-out can't be an

administrator but when the appointment

is claimed by more than one qualified

person preference in the appointment

shall be given by the court in the

following order so there's there's three

you know this one first if there's not

one of these it's gonna be one of these

and if it can't be one of those that's

gonna be one of these so when there's

more than one claimant to our person

who's asking to be appointed as the

administrator the top priority goes to

the best qualified among the surviving

spouse competent heirs or legatees or

the legal representatives of any

incompetent heirs or legatees of the

deceased so essentially that means

whoever's most qualified out of the

spouse in the heirs that's who a judge

would first pick and say have top

priority to be appointed as the

administrator but let's say no spouse or

heirs ask to be appointed as the

administrator then it goes to the

best-qualified of the nominees of the

surviving spouse come from there's

legatees leeward although so second

priority is whoever any of those spouse

or heirs nominate so that's the second

order of priority and then the third

kind of bottom on the pecking order but

at least they're qualified to be an

administrator but third on the pecking

order list is the best qualified of the

creditors of the deceased or a creditor

of the estate of the deceased or a

co-owner of a movable property with the

deceased

so that's who can be an administrator

first it's the spouse or heirs second

it's whoever the spouse or heirs

nominate and third it's the creditors or

co-owner of property with the deceased

alright and so let's go back through the

list and see who could have been the

administrator so Big Shot had a lot of

people he was dealing with one he had a

surviving spouse so maybe maybe she

would petition and if she's qualified

and you know what there's a definition

for her who's the best qualified

in our statute I probably should have

mentioned that best qualified as used in

this article means the claimant best

qualified personally and by training and

experience to administer the succession

okay so the spouse may be the spouse

applies to become the administrator

she's in that top level there so if she

can show through training and experience

that you know she's got the skills to do

it maybe the judge would appoint the

surviving spouse the deceased had

children and grandchildren now the

grandchildren couldn't be or any of the

grandchildren could not be an

administrator because let's say Big Shot

had three kids and nine grandkids

children will still still alive well the

the children are i errors but the

grandchildren are not are not so a

grandchild in this case could not be an

administrator a child could bigshot owns

some property with other people so if

the spouse and the kids you know won't

do it or can't do it then it is possible

that a co-owner of property with Big

Shot could be appointed as the

administrator with a little unique is

Big Shot had business partners and

there's no provision in our statute for

a a business partner to be appointed as

the administrator and I would think that

it would be pretty important for maybe a

business partner to be appointed as the

administrator to keep the business

operations going but there's no

provision for business partner bigshot

owed the bank he owed the credit card

company so that it is possible for a

creditor of the deceased to be appointed

as the administrator and I get that now

the woman on the side who's shouting

from the rooftops

I can't believe Big Shot died and he

promised he'd take care of me no chance

she's going to be an administrator but

she's just gonna keep yelling from the

rooftops so as a side note maybe with

side woman I don't even like talking

about side woman but maybe if he wanted

to take care of side woman on the side

he could have put some money in a

revocable living trust all for Big Shot

while he was alive but the living trust

would have said when Big Shot dies it

the assets of the living trust go to

side women all of that would have been

very public nobody else would have known

about it

so just a little side discussion on you

know how to leave stuff to somebody and

make it really private but that's not

the topic of this this is who could be

an administrator so really important and

and sometimes it's really important to

act fairly quickly when somebody dies if

there's the potential that more than one

person is going to be who's going to

make the request to be appointed as the

administrator and you got to follow the

rules you can't just say you know that's

not fair or you know I wrote a letter to

the judge and you know you got it you

got to follow the rules and and it'll

all sort itself out after you know time

and expanse and delay and money and all

that stuff but just wanted to make you

aware of what some of those rules are on

becoming an administrator of a louisiana

estate so here's what I need you to do

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