Ningbo Heritage Manager: Who will manage the heritage, how to manage it, and how much responsibility- Zhiheng Law Firm

After a person passes away, who takes charge of the estate has never been merely a family matter. Many families in Ningbo own factories, shops, several properties, as well as equity holdings, wealth management products, and overseas accounts. As soon as a person leaves, matters such as accounting, debts, rent, and shareholder voting often come to an abrupt halt—no one dares to act, yet everyone wants to. The Civil Code has specifically established the role of the estate administrator: upon the commencement of succession, the administrator takes over the estate, conducts an inventory and prepares a record, settles the debts, and then distributes the estate in accordance with the will or the law.

To begin with the conclusion: As long as your family owns more than one property, or if your debts or inheritance situation is even slightly complex, you should, while the decedent is still alive, designate a trustworthy and responsible estate administrator through a will. By the time everyone has left and the siblings start to disagree, applying to the court for a designation will result in a significant increase—multiplied several times—in terms of time, costs, and emotional strain. Next, I will clearly explain in one go: who should take on the role, when it is needed, what responsibilities are involved, how much accountability is required, and how compensation will be determined.

1. Who can serve as an estate administrator?

Article 1145 of the Civil Code establishes a hierarchical order for the manner of appointment, such that only when the preceding party is unavailable does the subsequent party take over.

The first in line is the executor of the will. If the decedent designated an executor in the will during their lifetime, upon the commencement of the succession, the executor shall be the statutory estate administrator, and no further appointment by others is required. The executor may be designated as either a single person or multiple persons; the appointee may be a natural person, or a legal entity such as a law firm or a trust company. The executor may be an heir, or a professional institution that is not an heir. In practice, to ensure a more comprehensive arrangement, the testator often specifies not only the executor in the will but also sets forth the executor’s remuneration, scope of duties, and alternate candidates.

The second order of succession is determined by the election of heirs. In the absence of an executor, the heirs shall promptly appoint an estate administrator after the commencement of the inheritance. It should be noted that the administrator must be selected only from among the heirs who have inheritance rights; individuals who are not heirs cannot be directly appointed as administrators. If it is indeed necessary to engage a professional, this is typically accomplished by designating such a person in the decedent’s will during their lifetime.

The third order of succession is held jointly by the heirs. If the heirs fail to designate a representative within the prescribed time limit, all the heirs shall jointly serve as the estate administrators. When multiple individuals serve as estate administrators, in practice, matters relating to the administration of the estate are typically resolved by majority vote in cases of disagreement.

The fourth priority is for the civil affairs department or the village committee to provide a safety net. If there are no heirs, or if all heirs have renounced the inheritance, the civil affairs department of the deceased’s last domicile or the village committee shall serve as the estate administrator. This priority order specifically resolves the impasse of “no one left, no one to oversee,” ensuring that creditors are not left without a proper avenue for asserting their claims.

What should be done if there is a dispute over the designation of an estate administrator? Article 1146 of the Civil Code provides that any interested party may apply to the people’s court for the appointment of an estate administrator. So-called interested parties are not limited to heirs; creditors may also file an application. Procedurally, the special procedure of "appointing an estate administrator" newly added in the Civil Procedure Law is applicable: it shall be under the jurisdiction of the basic people's court where the decedent's domicile or the main estate is located at the time of death; the court shall review and verify after acceptance, and in accordance with the principle of being conducive to estate management, The court may appoint another administrator if the designated person dies, terminates, loses civil capacity or is unable to perform his duties.

2. When is an estate administrator truly needed?

An estate administrator is not required in every inheritance case. For families with one child, one owned home, and little to no debt, the statutory inheritance process is sufficient. However, in the following scenarios, the outcome can often differ dramatically depending on whether there is a professional, impartial administrator.

The inheritance is scattered. Real estate, bank deposits, wealth management products, equity holdings, and vehicles are often spread across different cities, banks, and accounts. In addition, there are virtual assets such as online store accounts and platform accounts. For the average person, it is difficult to conduct a comprehensive inventory in one go, making it easy to overlook items or have them transferred out.
The debt is complex. The decedent operated a business, guaranteed to the outside world, owed money or borrowed money, and even had to pay off taxes on the estate. Who will return first, how much and which part will be returned without the overall planning of the manager will be chaotic.
The heirs are disputed. Remarried families, children born out of wedlock, subrogation, the dispute over the authenticity of the will, the heirs stand opposite, no one can trust who, at this time by a neutral administrator to count and distribute, can greatly reduce the conflict.
have offshore assets. Assets outside the country, verification and enforcement are very difficult, the domestic heirs to deal with their own often can not start, the need for the administrator to unify the external claims and prices.
No heir exists, or all heirs have disclaimed the inheritance. In such circumstances, where there is no administrator, creditors’ claims are virtually unrecoverable, and the law therefore provides for the civil affairs department or the village committee to step in as a last resort.

In a nutshell: The more fragmented the estate, the more tangled the debts, and the more divided the heirs, the greater the value of an estate administrator.

There’s a simple criterion for determining whether you need to appoint an estate administrator: if, as an heir, you cannot independently account within a few weeks for exactly how much money the deceased had, how much they owed, and where those funds are located, then it’s a sign that the estate has become too complex to handle without professional assistance. The lesson of many families is that the inheritance was occupied by a close relative for a long time before the division, the accounts were unclear and the income was unknown. In the end, the brothers and sisters went to court, and it was not just money.

Checklist of the duties of the administrator of the 3. estate

Article 1147 of the Civil Code lists six statutory duties, which are both powers and duties:

Clean up the estate and make an inventory of the estate. This is the first thing, and it also serves as the foundation for all subsequent work. The list should be as verifiable as possible, and it is the most direct evidence in the event of a lawsuit.
Report the estate to the heirs. The administrator has an obligation to explain to the heirs and cannot operate in the dark.
Take necessary measures to prevent the damage or loss of the estate. For example, timely maintenance of houses, payment of necessary insurance or property costs, and timely change of prices for easily depreciated assets.
Deal with the creditor's rights and debts of the decedent. It is necessary both to assert claims against the debtor and to discharge, on behalf of the estate, any taxes and lawful debts incurred by the deceased during their lifetime.
Divide the estate in accordance with the will or in accordance with the provisions of the law. If there is a will, the estate shall be distributed in accordance with the will; if there is no will, it shall be distributed according to statutory succession, with an inheritance share reserved for the fetus.
Perform other acts necessary in connection with the administration of the estate. This is aBottom-line guarantee clause, leaving room for complex situations.

In addition to the responsibilities, there is also an obligation that is often overlooked. Article 1150 of the Civil Code stipulates that after the commencement of inheritance, the heir who knows of the death of the decedent shall promptly notify other heirs and executors; if no one knows, or knows but cannot notify, the unit or domicile of the decedent shall be responsible for the notification.

In practice, whether a lawyer or an institution acts as an administrator, it usually follows a set of procedures: verifying the death certificate and confirming the beginning of inheritance; opening and checking the will without the witness or notarization of the interested party; verifying the identity of the heirs; notifying the heirs, legatees and interested parties, and urging the declaration of claims and debts through public announcement; during the announcement period, the administrator has the right to refuse to pay out and deliver the legacy; then clean up the estate, make a list, report to the heirs, confirm whether the heirs and legatees have waived their rights, pay off taxes and debts in order, and then divide and hand over according to the will or law, and sign the confirmation of the transfer of the estate. If there is a dispute in the process of division and the mediation fails, the administrator will suspend the division and resume it after the parties reach an agreement or the decision becomes effective, and the administrator generally does not act as the entrusted agent of either party in order to maintain neutrality.

How much responsibility should we bear if the 4. is not well managed, and what procedure should we follow if there is a dispute?

The scope of responsibilities of the estate administrator is the most substantial component of this legal framework. Article 1148 of the Civil Code explicitly provides that an estate administrator shall perform its duties in accordance with the law; if, through intent or gross negligence, it causes damage to the heirs, legatees, or creditors, it shall bear civil liability. In other words, a trustee who performs their duties in accordance with the law and exercises due diligence generally bears no liability even if the outcome is unsatisfactory; however, if they act intentionally in a reckless manner or cause the estate to be misappropriated, diminished in value, or improperly disposed of due to gross negligence, they must compensate the injured party.

It is worth noting that the parties bearing liability are not limited to heirs; they also include legatees and creditors; and if tax issues are involved, they may also face the tax authorities. For this very reason, serving as an estate administrator is a grave responsibility that brooks no carelessness.

Once a dispute arises, it typically follows two procedural pathways.

First is the dispute over the appointment of the administrator. Article 1146 of the Civil Code and Articles 194 to 197 of the Civil Procedure Law give a complete chain: the interested party applies to the basic court where the decedent's domicile or main estate is located at the time of death, and the application must specify The time of the decedent's death, the reason for the application and the specific request, and the death certificate and other evidence are attached; the court shall hear the case according to special procedures, and the first instance shall be concluded within 30 days. If the designated person fails to perform his or her duties, the court may revoke his or her qualifications upon application and appoint a new administrator in accordance with the law.

Second, how should creditors assert their claims? If the debtor dies and the heirs all waive the inheritance, the creditor will not be left with no way out. He may first apply to the court to appoint an administrator of the deceased's estate and then sue the administrator to pay off the debts to the extent of the estate administered. In the course of litigation and enforcement, there is another relevant provision: if a citizen who is the party subject to enforcement dies, and the heirs have not renounced their inheritance, the court may issue a ruling to substitute the party subject to enforcement with such heir(s), who shall be liable for repayment within the limits of the inherited estate; if the heirs renounce their inheritance, the estate shall be directly used to satisfy the debt. This is consistent with the principle of limited inheritance in article 1161 of the Civil Code-the heir shall pay off the taxes and debts of the heir to the extent of the actual value of the acquired estate, except in the case of partial voluntary repayment, and the waiver of inheritance may not be liable for liquidation.

5. Where do the remuneration and expenses come from?

Article 1149 of the Civil Code provides that an estate administrator may receive remuneration in accordance with statutory provisions or as agreed upon. This is the law’s legitimate compensation for the administrator’s labor and risks, and it also serves as a reminder: administrators do not work for free.

As for the specific remuneration, there is no uniform legal standard; it is primarily determined by prior agreement. When a professional institution is invited to act as an administrator, it will generally write down the service content, objectives and charging method in the entrustment contract; if the heir has any objection to the administrator's payment, the court will make a comprehensive judgment based on the scale of the estate, the complexity of the transaction and the performance of the duties. In addition to the administrator’s remuneration, reasonable expenses incurred in the process of liquidating, preserving, and realizing the estate—such as appraisal fees, publication fees, and necessary maintenance costs—should generally be prioritized for payment out of the estate. In the case of a testamentary trust, it may also be agreed that the trust administration fees shall be borne by the trust property.

It is also necessary to distinguish between two separate accounts: the remuneration of the administrator constitutes “compensation for services rendered,” whereas any income orinterest generated by the estate itself shall belong to the estate. The administrator shall not conflate the two, nor shall they exploit their official position to seek improper benefits for themselves or for any third party. If an heir discovers that the administrator has misappropriated or embezzled assets, in addition to requesting the administrator’s removal, the heir may also, pursuant to Article 1148, demand compensation.

Pay special attention: the earlier and clearer the remuneration agreement, the better. When people leave and the heirs are opposed, and then talk about how much money the manager should take, there is often another layer of disputes.

6. What is the relationship with the executor and estate liquidation?

Many people treat the executor and the estate administrator as two separate roles, but in the framework of the Civil Code, the two are actually interconnected. Article 1145, paragraph 1, states: “Upon the commencement of succession, the executor shall be the estate administrator.” The executor appointed during his lifetime is naturally transformed from the beginning of inheritance and serves as the administrator of the estate, with a high degree of overlapping functions. The difference is mainly in the source: the executor comes from the appointment of the heir, reflecting the freedom of the will, while the estate administrator covers all the circumstances of the absence of the executor.

Another layer can be analogized to liquidation. The idea of estate management and bankruptcy liquidation is very similar: first take over, count, announce the debt, and then pay off taxes and debts in order, and finally talk about distribution. The original intention of the Civil Code to establish this system is to fill the gap in the old law without inheritance management rules-to preserve and increase the value of the estate during the vacuum period from "inheritance beginning" to "division completion", to prevent it from being embezzled and robbed, and to solve the problem that there is no suitable subject for debt settlement when no one inherits. In the past, when an heir renounced the inheritance but nevertheless took actual possession of the estate, courts could only treat such a person as an “estate custodian” and order them to assist in settling the debts. With the implementation of the Civil Code, such matters are now uniformly handled by the estate administrator, thereby clarifying the creditors’ legal standing.

7. Practical advice: Arrange the administrator during one's lifetime.

No matter how good the system of estate administrator is, it is also a remedy "after the event. The truly prudent approach is to make the necessary arrangements while the decedent is still alive, mentally competent, and family relationships remain relatively harmonious.

Specify the executor in the will. This approach achieves two objectives: it ensures the will is executed and directly designates an estate administrator, thereby eliminating disputes over the selection of heirs and avoiding the need for a court‑appointed administrator in the future.
Give priority to professional, impartial institutions. When the family property is complex and the heirs are against each other, it is more convincing to have a lawyer, notary or trust company as the administrator than to have one heir concurrently.
Clearly outline the compensation, responsibilities, and successor. Agreement on the scope of services and fees, and in advance to imagine who will take over when the manager is unable to perform his duties, to avoid "stuck" in the middle ".
Set up testamentary trust when necessary, but we should pay attention to three key points: first, confirm whether the trustee is willing to accept, how long he can accept, and who will take over when he is not willing to accept; second, write down how to allocate the estate as specifically as possible, and don't leave vague space; third, it is best to arrange a supervisor to supervise the trustee.
Don't ignore the sixty-day time limit for bequests. The property left to grandchildren and grandchildren shall be treated as a bequest in law, and the bequestee shall expressly accept it within 60 days after knowing of the bequest, and if it is not expressed at the expiration of the time, it shall be deemed to have been abandoned. This deadline is easy to ignore, once missed, the right is gone.
The form of the will is to be compliant. The form is flawed, and even if the meaning is true, it may be found invalid-the witness is not qualified, the self-written will cannot prove the autographed, are common minefields.

Class Case Reference: In the case of Ou Moushi's application for the appointment of an estate administrator (Case 55 of Chinese Court's 2023 Case, Marriage, Family and Inheritance Dispute), due to the unknown whereabouts of some heirs and disputes over the administration of the estate by the other heirs, the court applied special procedures to appoint some heirs as estate administrators, and made the appointment based on the decedent's will, the distance between each heir and the decedent and the heir and the decedent, and the management convenience. Trial court: Siming District People's Court of Xiamen City, Fujian Province (Special Procedure) Case No.:(2021) Min 0203 Min Special No. 224; Source: Knowledge Base, 2023 Cases of Chinese Courts, Marriage, Family and Inheritance Disputes.

8. Frequently Asked Questions

Q: Is there a difference between an estate administrator and an executor?Answer: There is both overlap and difference. The executor of the will originates from the appointment of the will and is the administrator of the estate after the beginning of the succession, and the estate administrator also includes the selection of heirs, joint office, civil affairs or village committee, etc., with a wider scope.

Question: What should be done if several heirs, acting as joint administrators, cannot reach a consensus? Answer: When there is a difference in joint management, the estate management matters are usually decided according to the principle of majority decision; if the difference is serious and cannot be promoted, the interested party can request the court to appoint another person or revoke the qualification.

Question: Is the estate administrator liable for the deceased’s debts on an unlimited basis? A: No. The administrator is only responsible for the performance of his duties and only compensates for the damage caused by intentional or gross negligence; as for the debts of the decedent, the estate itself is paid off within the limited scope of inheritance, and the administrator is dealt with within the scope of the estate, not with his own money.

Question: How long does it take to apply to the court for the appointment of a receiver?Answer: Special procedures apply, with a single-instance final judgment; cases are generally concluded within thirty days from the date of filing.

question: what is the starting point of the legatee's sixty days? A: It starts from when the bequestee knows or should know about the bequest, not from the date of the death of the decedent. Upon learning that you have been bequeathed an inheritance, you should promptly submit a written statement of acceptance.

Question: Can the decedent designate only an estate administrator without specifying a detailed distribution plan?Answer: You can designate only the administrator, but it is more prudent to clearly specify the distribution preferences as well. The executor is responsible for implementing the distribution plan “as specified”; the more detailed the plan, the fewer disputes are likely to arise in the future. If the will makes no mention whatsoever of the distribution, the executor must proceed according to the statutory rules of inheritance.

9. Lawyer's Practical Insights

The role of an estate administrator is one that many families only become aware of after something goes wrong. A common misconception is that “once the person is gone, whoever wants to handle it can do so,” or “since everyone is an heir anyway, just let them all discuss and decide among themselves.” Once a family owns factories, shops, multiple properties, and investment holdings, the books, debts, rents, and shareholder voting all come to a sudden standstill—no one dares to act, yet everyone wants to. An estate administrator is not required in every inheritance case, but when assets are scattered, debts are complex, there are disputes among heirs, or there are overseas assets, the presence—or absence—of a neutral and professional administrator can make all the difference.

From the perspective of succession priority, the executor designated by the decedent in the will takes precedence; the designated executor may be a natural person, a law firm, or a trust company. If there is no executor, the heirs shall elect one; if they are unable to do so, all the heirs shall jointly serve as executors; and if that is still not possible, the civil affairs department or the village committee shall assume responsibility. In practice, the safest way is to take advantage of the heir's survival, directly in the will to appoint a trustworthy, but also to shoulder the responsibility of the administrator, and write down the scope of responsibility, the candidate and remuneration, to avoid the brothers and sisters behind each other to go to the court to apply for appointment, then the time, costs and emotional losses will be multiplied.

What needs to be reminded is that the estate administrator and testamentary execution are not the same thing. The former manages the whole process of "assets and capital verification, debt repayment and distribution", while the latter focuses on implementing the meaning of testamentary, and don't mix the two concepts when arranging. If the property relationship in the family is complicated, the manager should be arranged before his death, and the inheritance clues-accounts, equity, insurance policies, overseas assets-sorted out and handed over to the manager, otherwise as soon as the clues are scattered, the manager is also professional and skillful. If the manager fails to perform their duties properly, they must be held accountable. Therefore, when selecting personnel, don’t just consider personal connections; you must assess whether they can truly fulfill their responsibilities and withstand an audit.