When someone dies, their financial affairs don’t just magically resolve themselves. Bills still need to be paid, assets need to be distributed, and creditors need to be notified. Someone has to step into the deceased person’s shoes and handle all these responsibilities, but the title of that person depends on whether the deceased left a valid will. If there’s a will, that person is called an executor. If there’s no will, they’re called an administrator. The role of an executor and administrator may sound similar, but they are legally distinct positions with different sources of authority and responsibilities.
Most people use these terms interchangeably, but the distinction matters more than you might think. The difference affects how much court supervision you’ll face, what powers you’ll have, and how much flexibility you’ll get in managing the estate.
Executor vs. Administrator – What’s the Difference
The fundamental difference lies in the source of their authority. An executor is specifically named in the deceased person’s will and derives their power from that document and the deceased person’s choice. An administrator is appointed by the court when there’s no will or when the named executor can’t serve.
Executors often have more flexibility because the will can grant them broad powers to manage the estate with minimal court oversight. They’re essentially carrying out the deceased person’s expressed wishes as written in the will.
Administrators face more restrictions because they have no guidance from the deceased person about how to handle the estate. Texas law provides the framework for their actions, but they typically need more court approval for major decisions.
The level of court supervision also differs significantly. Independent executors can often manage estates with minimal court involvement, while administrators usually face dependent administration with more frequent court reporting and approval requirements.
Requirements of an Executor and Administrator in Texas
Both executors and administrators must meet basic qualifications under Texas law. They must be at least 18 years old, mentally competent, and not have been convicted of a felony unless their civil rights have been restored.
For executors, the will typically names the person, but they still must qualify with the court by proving the will is valid and taking an oath to faithfully perform their duties. The court can reject a named executor if they’re not qualified or if circumstances make them unsuitable.
For administrators, Texas law establishes a priority order. The surviving spouse has first priority, followed by the deceased person’s children, parents, siblings, and other relatives. If no family members can serve, the court can appoint a creditor or professional administrator.
Both may need to post a bond to protect the estate from potential mismanagement, though independent executors are often exempt from this requirement if the will waives the bond.
How to Administer an Estate
The administration process follows similar steps regardless of whether you’re an executor or administrator. You must locate and secure all estate assets, notify beneficiaries and creditors, pay valid debts and taxes, and distribute remaining assets according to the will or Texas law.
The process begins with filing the appropriate application with the probate court. Executors file an application to probate the will, while administrators file an application for letters of administration.
Once appointed, you’ll receive Letters Testamentary (for executors) or Letters of Administration (for administrators), which give you legal authority to act on behalf of the estate.
Responsibilities of an Executor and Administrator After Appointment
These are the responsibilities of an executor and administrator after appointment:
Bond & Oath Requirements
Both executors and administrators must take an oath promising to faithfully perform their duties. This oath is legally binding and creates fiduciary responsibilities that can result in personal liability if violated.
Bond requirements vary depending on the type of administration. Independent executors often don’t need bonds if the will waives this requirement. Administrators typically must post bonds unless all beneficiaries agree to waive them.
Liability Risks & Bond Coverage
Serving as an executor or administrator creates potential personal liability for mistakes or misconduct. You can be held responsible for losses caused by poor investment decisions, failure to pay taxes, or improper distributions.
Bonds provide some protection by covering losses caused by dishonest or negligent acts, but they don’t eliminate all liability risks. Understanding your responsibilities and getting professional help when needed is crucial.
Inventory and Appraisal (90-Day Deadline)
Texas law requires a comprehensive inventory of all estate assets within 90 days of appointment. This document must list every asset the deceased owned, its location, and its fair market value as of the date of death.
The inventory serves as the foundation for estate administration and protects both beneficiaries and the executor or administrator from disputes about what the estate contained.
Creditor Notices and Debt Payment (Statutory Order of Priority)
You must notify creditors and give them an opportunity to make claims against the estate. Texas law establishes specific procedures for creditor notices and sets deadlines for claims.
Debts must be paid in a specific order established by law, with funeral expenses and administration costs typically having priority over other debts.
Tax Filings, Accounting & Final Distribution
Estate tax returns and final income tax returns must be filed when required. You’re also responsible for keeping detailed records of all estate transactions and providing accountings to beneficiaries and the court.
Final distribution can only occur after all debts are paid, tax obligations are satisfied, and any required waiting periods have expired.
Compensation & Fee Caps
Both executors and administrators are entitled to reasonable compensation for their services. Texas law sets guidelines for compensation, typically based on a percentage of the estate’s value.
The amount must be reasonable considering the time spent, complexity of the estate, and results achieved. Excessive compensation can be challenged by beneficiaries.
Working with an experienced will attorney in Houston, TX, can help you understand the duties of an executor and administrator, avoid costly mistakes, and protect yourself from potential liability. Whether you are serving as an executor or administrator, our skilled lawyer in Houston, TX, can guide you through the process from start to finish.
Contact our skilled lawyer in Houston, TX, today.
