Administration Proceedings
What Happens When There Is No Will?
Administration proceedings typically occur when a loved one passes away without a Will or Trust and there is an estate that needs to be managed or distributed. Here, New York has a separate body of law that approximates how an average person would distribute his or her estate.
An Alternative Solution
Understanding Administration Proceedings
Administration proceedings in New York are required when the Decedent passed with no Will and there are assets in his or her name alone that exceed exempt property, or that property which passes to a surviving spouse or minor children automatically. The process is regulated by intestacy laws that seek to mirror how an average person would give away his or her estate. Administration proceedings can be either complex or simple, depending largely on how many heirs exist and how remote the relation of the heir is to the Decedent. The Surrogate’s Court in New York must be fully satisfied that all heirs are located before it will appoint an Administrator which oftentimes poses significant delays and additional work if all heirs are remote. The Public Administrator, or the administrator of last resort, might need to be appointed by the court if there are no known heirs of the decedent or there are no fiduciaries able or willing to serve as administrator.
Support Healing
Learn Who May File
For Administration
Who may serve as Administrator turns in large part on whether the Decedent left behind a spouse and/or biological or formally adopted children. There is a strict ranking of who may serve as Administrator: surviving spouse, children, grandchildren, parents, siblings, nieces and nephews, Public Administrator, creditors, and other interested parties with a financial interest, in top down order. Those who are situated more closely to the Decedent must renounce their interest in serving as Administrator before those in a lower ranking may serve. The court may appoint co-administrators who are in the same ranked class and in most cases, the proposed Administrator must post a bond. Those with a felony record may not serve as Administrator absent the court’s permission.
Avoid Delays
What Must Be Submitted In An Administration Proceeding
The proposed administrator must submit a Petition for Letters of Administration that provides information regarding the Decedent, the Decedent’s heirs, and the overall value of the estate. In addition, the proposed administrator must submit an Affidavit of Heirship and Renunciations if there are individuals with a greater or equal priority to serve as administrator. Oftentimes, the proposed administrator must post a bond.
Legal Guidance
The Duties Of An Administrator
Once appointed by the court, an Administrator must notify all creditors and heirs of the deceased’s passing and provide them with an opportunity to make claims against the estate. Next, the administrator must identify and collect all assets of the decedent - real property, bank account, personal property, digital assets - and present an Inventory of Assets to the court. The administrator continues his or her duties by timely paying all debts and expenses. Finally, the administrator must distribute assets to the beneficiaries according to the intestacy laws of New York and prepare an accounting to the court.
Navigate Complex Decisions
The Intestacy Laws of New York
Administration proceedings provide an orderly and structured process for settling the estate and distributing assets. This ensures that the estate is managed according to the law, protecting the rights of all parties involved. It also ensures that any outstanding debts and taxes are paid before distribution, preventing future legal complications.
Wrap Up Small Estates
File a Voluntary Administration Proceeding
If a Decedent’s estate is valued at $50,000 or less with no real property or litigation involved, the Surrogate’s Court offers a simplified process for handling small estates. No formal issuance of Letters Testamentary or Letters of Administration is required and a voluntary administration is typically appointed soon after he or she applies. Citations, hearings, and sometimes lengthy delays are avoided and sometimes legal representation is not needed. In a voluntary administration, the Surrogate’s Court allows a voluntary administrator to collect a specific asset in lieu of attending to a Decedent’s entire estate.
A Decedent’s estate is already jeopardized when he or he fails to execute a Will or Trust. However, an Administration Proceeding is a safeguard against rightful heirs receiving no bequest or for Decedent’s assets to be spoiled or abandoned. Heirs are assured assurance that the Decedent’s estate is handled fairly and lawfully, creditors have a formal mechanism to assert their claims, the administrator receives legal authority and protection and court supervised process is managed transparently, avoiding chaos and disputes. By following a structured legal process, we help safeguard your loved one’s wishes and the rights of all beneficiaries involved in an administration proceeding.
Maintain Estate Value
By managing and protecting the estate’s assets during the proceedings, the administrator helps to preserve the value of the estate, ensuring that beneficiaries receive maximum benefit.
Provide Transparency
The legal requirements of administration proceedings ensure transparency in all dealings, which helps to build trust among beneficiaries and other stakeholders.
Manage Tax Obligations
Professional administrators are knowledgeable about tax laws and can manage tax obligations efficiently, ensuring compliance and minimizing the estate’s tax burden.
Proper Record-Keeping
Administration proceedings involve meticulous record-keeping, which is crucial for providing an accurate account of all transactions and decisions made during the estate settlement process.
Provide Peace of Mind
An impartial administrator can make objective decisions based on legal and financial considerations, avoiding potential conflicts of interest that can arise when family members act as executors.
Peace of Mind
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Professional Care
Retaining our office for an Administration proceeding ensures that a loved one’s estate will be managed legally and efficiently. We minimize estate disputes, settle creditor claims and account to the court. Rely on us to ensure a fair and orderly distribution of assets.