Being a fiduciary as an estate administrator means taking on a legal and ethical obligation to act in the best interests of an estate and its beneficiaries. A fiduciary duty is one of the highest standards of care under the law, and estate administrators must manage an estate’s assets with honesty, loyalty and prudence accordingly.
This role is often assumed by someone appointed by a probate court, as the majority of American adults do not have estate plans in place. However, this role can also be assumed by someone who has been named to the position in a deceased individual’s will.
Why the “fiduciary” aspect of this role matters
The responsibilities of an estate administrator are extensive and require careful attention to detail. First and foremost, an administrator must gather and protect all estate assets. This includes locating bank accounts, real estate, personal property and any other valuables that belonged to the deceased. These assets must be preserved and sometimes appraised to determine their value.
Next, the administrator must ensure that all legitimate debts and taxes owed by the estate are paid. This may involve notifying creditors, settling outstanding bills and filing final income tax returns. These financial duties must be carried out with full transparency, as the administrator is accountable to both the probate court and the beneficiaries of the estate.
Perhaps one of the most important aspects of a fiduciary’s duty is impartiality. The administrator must treat all beneficiaries fairly and avoid any conflicts of interest. This can be especially challenging in emotionally charged family situations, but the fiduciary must remain neutral and act according to the law and the terms of the will or estate plan.
Estate administrators must also provide an accurate accounting of all financial transactions during the administration process. This report may be reviewed by the court or interested parties to ensure everything has been handled properly. If any misconduct or negligence occurs, the administrator can be held personally liable.
Serving as a fiduciary is not just about managing money—it’s about trust. An administrator is entrusted with carrying out the decedent’s final wishes and ensuring that their legacy is handled with respect and integrity.