When a person passes away, their estate – comprising assets, debts, and liabilities – must be managed and distributed in accordance with their will or the law. Executors and administrators play crucial roles in ensuring the orderly administration of the deceased’s estate. This blog post explores the responsibilities, powers, and challenges faced by executors and administrators under Nigerian law.
Who Is an Executor or Administrator?
- Executor:
An executor is a person appointed by the testator (the person making the will) to carry out the instructions in their will. The executor’s role begins upon the death of the testator and the validation of the will through probate. - Administrator:
An administrator is appointed by a court to manage the estate of a deceased person who died intestate (without a valid will) or when no executor is named or available.
Key Responsibilities of Executors and Administrators
- Obtaining Probate or Letters of Administration
Executors must apply for a grant of probate to validate the will, while administrators must secure letters of administration to manage an intestate estate. - Identifying and Valuing Assets
They are responsible for identifying, cataloging, and valuing all assets owned by the deceased, such as properties, bank accounts, and investments. - Settling Debts and Liabilities
All outstanding debts, taxes, and other liabilities of the deceased must be paid before distributing the estate to beneficiaries. - Distributing the Estate
Executors distribute the estate according to the will’s instructions, while administrators follow the guidelines in the Administration of Estates Law or customary law, as applicable. - Keeping Accurate Records
Detailed records of all transactions and communications related to the estate are essential to ensure transparency and accountability.
Legal Framework Governing Estate Management
- Wills Law:
Governs the validity and execution of wills in Nigeria. Executors are bound to follow the terms of the will strictly. - Administration of Estates Law:
Outlines the process of estate administration for intestate estates, including the distribution hierarchy. - Probate Registry Rules:
Provides procedural guidelines for obtaining probate or letters of administration.
Challenges Faced by Executors and Administrators
- Disputes Among Beneficiaries
Conflicts may arise over the validity of the will, asset valuation, or the fairness of distribution. - Insufficient Funds
The estate may lack liquid assets to cover debts, taxes, or legal expenses, complicating administration. - Complex Estates
Estates involving businesses, international assets, or extensive liabilities may require expertise in specialized areas of law and finance. - Legal and Tax Obligations
Failure to meet legal or tax obligations could expose executors or administrators to personal liability. - Cultural and Religious Practices
Executors and administrators may face pressures to honor customary or religious practices that conflict with statutory requirements.
Best Practices for Executors and Administrators
- Engage Professional Advisors
Executors and administrators should seek legal and financial advice to navigate complex estate matters effectively. - Communicate Transparently
Regular updates to beneficiaries can help build trust and reduce conflicts. - Act in Good Faith
Executors and administrators have a fiduciary duty to act in the best interest of the estate and its beneficiaries. - Follow Legal Procedures
Strict adherence to probate or administration processes ensures smooth estate management and avoids legal pitfalls.
Conclusion
The roles of executors and administrators are pivotal to estate management in Nigeria. While the responsibilities can be daunting, understanding the legal framework and seeking professional support can help ensure a smooth and fair administration process. Executors and administrators must balance their duties with compassion and fairness, honoring the legacy of the deceased.
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