Estate Administration
An estate administrator is a person, a corporation or the Administrator General, appointed by the court to collect the assets of the estate, manage them, pay off the estate's debts and, finally, distribute the estate's assets to the heirs.
The estate administrator is appointed by the court or by the Registrar of Inheritance Affairs, at the request of an heir or a creditor of the estate, or at the request of the Administrator General or the Attorney General. The estate administrator is subject to the court's instructions, under which he must take action to collect the estate's assets, manage, safeguard and insure them, pay off the debts, and distribute the remaining assets among the heirs in accordance with an inheritance order or a will. To fulfill this role, the estate administrator carries out legal actions, such as filing applications with the court, and administrative actions, such as collecting assets and paying debts.
Below is an explanation of the processes of appointing an administrator and of managing and distributing the estate.
When will the court appoint an estate administrator?
An estate administrator is needed when at least one of the following applies:
a. There is property to be divided that is significant to the heirs.
b. Relations between the heirs are known to be sensitive.
c. The deceased was a dominant figure in the heirs' lives, and they are expected to find it hard to make decisions in his or her absence. In this situation, the estate administrator serves as a substitute for the deceased and as a calming, conciliatory mediator.
d. The assets are complex.
e. Relations between the deceased and his or her relatives were based on trust, so that there is a gap between formal registration and actual ownership.
The estate administrator will be the person appointed by the deceased, agreed upon by the heirs, or designated by the Family Court.
The Succession Law sets out the rules for settling and administering the estate of a deceased person. The law imposes a reporting duty on a court-appointed estate administrator and authorizes the Administrator General to supervise the estate administrator and his actions in administering the estate.
Temporary estate administrator
An application to appoint a temporary estate administrator is filed whenever action needs to be taken in the estate, for example making payments, safeguarding funds, renting out a property, collecting the estate's assets, paying debts, or conducting legal proceedings on behalf of or against the estate.
If, for any reason, the issuance of a probate order is delayed because of an objection to the will, a temporary estate administrator is appointed.
Appointing a permanent estate administrator
The role of a temporary estate administrator ends when the heirs are declared upon the issuance of a probate order. As part of the probate order, a permanent administrator may be appointed for the estate. Such an appointment is made when the deceased's will involves a public interest, when one of the beneficiaries is a minor, when there are trust provisions, or when the will contains provisions that require special supervision.
Where the order does not specify the term of the estate administrator's appointment, the term of a permanent estate administrator will be two years, and that of a temporary estate administrator six months.
Court instructions to the estate administrator
The estate administrator serves as an officer of the court, receives instructions from the court and is under its supervision. The court may, at any time, at the request of an interested party or on its own initiative, give the estate administrator instructions on any matter concerning the performance of his duties.
The estate administrator may also apply to the court himself for instructions.
Given Adv. Osnat Reich's extensive experience in litigation before the Israeli courts, the court has more than once appointed her to serve as estate administrator, a role she fulfills with complete fidelity.