What is a Public Administrator in New York?

A public administrator is a government agency at the county level that administers the estates of county residents who die without a will with no relative eligible or willing to administer their estate.

The Public Administrator is also required to be given notice of probate petitions when the closest living relative is a cousin or more distant than a cousin.

Even if the will names an executor, if the initial executor is unable to qualify or serve and there is no alternative, the Public Administrator can be named replacement to the unqualified executor.

Generally, the Public Administrator can be involved when:

• A person dies with no will and is survived by no known next of kin or no kin closer than first cousins;
• When a person dies with a will and no one has offered the will for probate; or
• When the executor of a will or administrator becomes ill, dies, is convicted of a felony, or otherwise disqualified, and no other person is available to administer the estate.

What does the Public Administrator do?

Similar to an executor or administrator, a Public Administrator collects the assets of the estates, pays the decedent’s debts and other administrative expenses, and distributes the remaining balance to the distributees or beneficiaries.

To do this, the Public Administrator outsources personnel such as real estate brokers, contractors, law firms, and accountants. In turn, the Public Administrator receives a commission as administrator based on a percentage of the value of the estate assets.

Because the Public Administrator normally administers an estate where there are no known kin, the distribution of estate assets takes the longest time. It will require the help of genealogists or investigators to locate the distant relatives who may be located in different states or countries.

To prevent a Public Administrator from administering your estate and taking a portion of your assets as a result, you must plan your estate with a well-written will nominating an executor and alternative executors.

Should you need assistance in estate planning and the drafting of your will, we at the Law Offices of Albert Goodwin are here for you. We have offices in New York City, Brooklyn, NY and Queens, NY. You can call us at 212-233-1233 or send us an email at [email protected].

The Statutory Basis and Office Structure

The Public Administrator is established by Article 11 of the Surrogate's Court Procedure Act. Each New York County has a Public Administrator, with the office in New York City handled by separate Public Administrators for each of the five boroughs — New York County, Kings County, Queens County, Bronx County, and Richmond County. Each Public Administrator is an independent office with its own counsel, accountants, and staff.

The Public Administrator is appointed by the Surrogate of the county and serves at the Surrogate's pleasure. The office is funded through commissions and fees collected from the estates it administers, not through general tax revenue. This means the office's resources scale with its caseload, but it also means that administration costs come out of the estates of decedents who often have modest assets.

How a Case Comes to the Public Administrator

Cases reach the Public Administrator through several pathways. The most common is referral from law enforcement. When a person dies alone — sometimes discovered days or weeks after death — the police search for next of kin. When no close family is found, the police refer the case to the Public Administrator. The PA then takes possession of the property, secures the home, inventories the contents, and begins the administration process.

Cases also come from hospital social workers, nursing homes, the Office of the Chief Medical Examiner, and similar institutions that encounter deaths of individuals without close family. Sometimes a distant relative will contact the PA to suggest the PA's appointment after deciding they do not want to serve.

Court referrals also produce PA appointments. When a contested case reaches a point where no qualified family member can serve as fiduciary, the court may appoint the PA. This is sometimes called the PA's "last resort" role.

What the Public Administrator Does in Practice

Once appointed, the Public Administrator takes the same basic steps as any other fiduciary, but the work is structured differently because the PA handles many estates simultaneously.

Securing the residence. The PA changes locks, posts notices, and takes physical control of the decedent's home or apartment. If the decedent died with personal property in the home, the PA arranges for inventory, valuation, and either storage or sale.

Finding assets. The PA searches for bank accounts, brokerage accounts, retirement accounts, life insurance policies, real estate, and other assets. Title companies, the Department of Finance, the state's unclaimed property database, and the decedent's personal records are all consulted.

The PA also searches for debts and obligations. Creditors are notified, claims are evaluated, and legitimate debts are paid from estate funds.

Searching for heirs. The PA conducts genealogical research to identify the decedent's distributees. Birth certificates, marriage certificates, immigration records, and other documents are obtained. Heir search firms may be retained for difficult cases. The investigation can take years for decedents whose families are scattered or whose records are incomplete.

Sale of property. Real estate, vehicles, jewelry, art, and other valuable items are typically sold rather than distributed in kind. The PA uses brokers, auction houses, and other professionals to maximize value. Court approval is generally required for the sale of real estate.

Accounting and distribution. When the assets have been collected and debts paid, the PA prepares an accounting and obtains court approval to distribute. Distribution may include payments to known distributees, deposits with the court for distributees who cannot be located, and (when no distributees can be found) eventual escheat to the State of New York.

How the Public Administrator Charges

The Public Administrator earns commissions on the estates administered, similar to any other fiduciary, on a schedule provided by statute. In addition, the PA's outside attorneys are paid for their legal services, and other vendors are paid from estate funds for services such as real estate brokerage, auction, and genealogical research. These costs come out of the estate before distribution to beneficiaries.

Because the PA handles many estates and has substantial overhead, the total cost of administration through the PA can be higher than administration by a family member. For a family that wants to preserve estate assets for distribution, having a qualified family member serve is generally preferable to having the PA serve.

How to Avoid the Public Administrator

Several steps reduce the chance that your estate will end up with the Public Administrator:

• Make a will. A will that names an executor and successor executors avoids the gap that leads to PA appointment.
• Name backups. A chain of named successors makes it much more likely that someone willing and able will be available at your death.
• Tell people about your plan. Let your executor know they have been named and where the original will is located.
• Stay connected with family. Maintain at least some contact with relatives who could step in if needed.
• Use a revocable trust. Property held in a revocable trust bypasses probate entirely, with the successor trustee taking over without court involvement.
• Make sure the will is findable. A well-drafted will in an unfindable location does no good. Store the original with your attorney or in a known safe location.

What to Do If a Family Member's Estate Is Headed to the Public Administrator

If you have learned that a relative has died and that the PA may take the case, you have options. If you are a qualified relative — under the priority order in SCPA § 1001 — you can petition the Surrogate's Court for appointment as administrator. The petition has to be filed promptly, before the PA's appointment is finalized.

If the PA has already been appointed but you can demonstrate that you are a qualified relative and would have priority, you can petition to substitute. The PA does not generally resist these substitutions because the PA's mission is to administer estates where no qualified relative is available; the PA will yield to a qualified relative who steps forward.

Why People Sometimes Prefer the Public Administrator

In some cases, a family member with priority will renounce in favor of the PA serving. This usually happens when the family member does not want to deal with the work, does not want the responsibility, or anticipates conflicts with other beneficiaries. The PA can handle the administration impartially and protect each beneficiary's interests under court supervision.

The cost of having the PA serve is the commissions and fees charged. For estates where the family does not want the administrative burden, that cost may be worth paying.