Heirs Conflicts - Appointment of an Estate Administrator: Everything You Need to Know - Walla! Trial

2021-01-24T06:01:29.458Z

In which cases should you ask the court to appoint an administrator to the estate? What is the difference between a temporary estate manager and a permanent manager? Is the court obligated to have a permanent estate administrator determined in the will? Instructions

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family law

Heirs Conflicts - Appointment of an Administrator: Everything You Need to Know

In which cases should you ask the court to appoint an administrator to the estate?

What is the difference between a temporary estate manager and a permanent manager?

Is the court obligated to have a permanent estate administrator determined in the will?

Instructions

What is the difference between a permanent estate manager and a temporary estate manager?

A temporary estate manager is an urgent remedy that is granted even before an inheritance order or a will is issued, which teaches how the estate will be divided.

A temporary administrator of an estate is usually appointed when legal disputes arise between the heirs, and these disputes prevent the issuance of the order for the division of the estate.

The settlement of disputes in the courts may take many years, which requires that in the interim period the estate be preserved and the assets in it treated so that they are not caused damages and impairment due to neglect.

In which cases is it advisable to appoint a temporary estate manager?

Typical cases of a complex estate that may be worth appointing a temporary estate manager, for the period of legal proceedings, include, for example, an estate that has funds, stocks and investments, which without care and management will lose their value or, alternatively, an estate that includes management, maintenance and investment constant, as well as obtaining professional decisions in order to maintain their value.

there are other cases in which those who are heirs have access to funds or control of certain assets (such as through a power of attorney to a certain bank account) and the suspicion arises that a successor "will determine facts on the ground" or ibex assets. In In these and other similar cases, it is not possible to wait for the results of the lengthy main legal proceedings and it is required to appoint a temporary estate administrator.

What are the powers of a temporary administrator?

A temporary administrator of an estate is required to maintain the status of the estate until the court decides, to manage the property passively so that it will not be harmed, and to address immediate problems.

Take, for example, a case from the last period that was in our care, in which a property owner who died and one of his heirs filed an objection to his will for various reasons.

During the trial, the parties asked the court to order the appointment of a temporary administrator to the estate.

The reason: the estate included shares in a start-up company.

As long as the deceased was alive, he took care of the management of the company, maintaining contact with the investors in the company and raising additional capital for the company.

After his death and after objections were filed to his will, a vacuum was created in the management of the company and there was concern that in the absence of ongoing care, the company would accumulate debts and lose opportunities to realize investment and purchase offers.

There was also a real concern that in the absence of funding it would reach insolvency and cause irreparable damage to the value of the estate.

The way to avoid damaging the company was to recruit investors immediately or sell the company.

The right decision of the appointed interim administrator was to negotiate with additional investors in order to urgently raise capital for the company and execute an investment transaction in the company. Had these essential actions been postponed, the company would have collapsed and the capital invested in it would have gone down the drain.

What are the powers of a temporary administrator?

(Photo: ShutterStock)

What are the powers of a permanent estate manager?

A permanent executor is responsible for the execution of a will whose validity has already been confirmed by the court (because no objections to its existence have been filed or after the court has rejected the objections filed).

Therefore, his tenure is much more significant than that of a temporary estate administrator, whose role is relatively passive.

The purpose

of regular management

of the estate is not only to maintain the value of the estate passively, but also to take any necessary action that will lead to its improvement, development and increase in value.

Hence, the powers of the administrator of the permanent estate are broad, including making material decisions including the realization of the assets of the estate with maximum consideration and their division among the heirs.

Is the court obligated to approve the appointment of an executor determined in the will?

definitely not.

The purpose of managing the estate is, as stated, to prevent disputes between the heirs, preserve the value of the estate and improve it.

The court may order the appointment of an executor other than the one named in the will, especially if that executor is close to one of the heirs and another heir opposes the appointment.

In these cases, the court will appoint an objective and neutral administrator of the estate, or appoint the lawyers of both parties to this position in order for them to act jointly.

It should be noted that in this case, the salary of the two administrators of the estate together will be the same as that of one administrator of the estate, and the fact that there are two factors involved in the treatment does not cause additional costs.

Why not save on the cost of the estate manager's salary and "get by" ourselves?

The appointment of an executor does involve certain costs, but these costs are enshrined in law and court rulings and should not be deviated from. In most cases the benefit of appointing a professional estate manager far outweighs the costs.

In conclusion, heirs are sometimes put off by an estate management situation and believe that they can solve the problems themselves. This assumption is true in cases where there is a relatively simple estate. But in complex cases involving many substantial assets and a large number of heirs. It is advisable to consider appointing a professional estate manager. Otherwise, at the end of years of litigation the heirs may find themselves many on property some of which no longer exists.

The law firm of Tamir & Co. specializes in litigation (litigation), arranging family capital and consulting in the field of inheritance law.

Phone 053-9348800

Article courtesy of Zap Legal The

information presented in the article does not constitute legal advice or a substitute for it and does not constitute a recommendation for taking proceedings or avoiding proceedings. Anyone who relies on the information in the article does so at his own risk