Role of Executors in Estate Administration: A Cross-Country Comparison

Executors play a pivotal role in managing estates after death, ensuring the deceased’s wishes are fulfilled and assets are distributed appropriately. However, the role, responsibilities, and legal framework for executors vary significantly between Germany and Thailand. Understanding these differences is essential for effective estate administration, particularly in cross-border cases.

 
1. Appointment of Executors

Germany
Executor in a Will (Testamentsvollstrecker): Executors are typically appointed through a will. The deceased must explicitly name the individual, otherwise, the role does not exist by default.
Court Involvement: The probate court confirms the executor’s appointment and provides them with a certificate of execution (Testamentsvollstreckerzeugnis) to act on behalf of the estate.

Thailand
Named Executor in a Will: Executors are also appointed through a will, but their role is often less formalized compared to Germany.
Court Appointment: If there is no will, or if disputes arise, the Thai court may appoint an administrator to handle the estate.
 
2. Responsibilities of Executors

Germany
Executors have extensive responsibilities and authority, including:

Estate Valuation: Conducting a formal inventory of all assets and liabilities.
Debt Settlement: Paying off debts and obligations of the deceased.
Distribution of Assets: Ensuring that heirs receive their shares according to the will or legal requirements.
Protection of Mandatory Shares: Ensuring mandatory shares (Pflichtteil) are calculated and paid to entitled heirs.

Thailand
Executors in Thailand have similar but less regulated responsibilities:

Asset Management: Locating and managing assets until they are distributed.
Debt Payment: Paying the deceased’s debts from the estate.
Heir Distribution: Distributing assets as outlined in the will or according to Thai inheritance law.
Simplified Procedures: Executors often operate with less oversight from courts compared to Germany.
 
3. Legal Authority

Germany
The executor has broad authority over the estate, often overriding the heirs’ ability to act independently during the administration process.
Executors act as fiduciaries and are legally obligated to act in the best interests of the estate and its beneficiaries.

Thailand
Executors act more as facilitators, with heirs retaining more direct control over the estate.
Their authority may be challenged if heirs disagree with their actions, requiring court intervention.
 
4. Formality and Oversight

Germany
Executors must adhere to strict formalities and legal procedures.
The probate court oversees the executor’s actions to ensure compliance with German inheritance law.
Detailed records and formal reports are often required, especially for complex estates.

Thailand
The process is less formalized, and court involvement is minimal unless disputes arise.
Executors are generally trusted to handle the estate without extensive documentation or oversight.
 
5. Compensation

Germany
Executors are entitled to compensation, which is typically a percentage of the estate’s value or a fee stipulated in the will.
The amount must be reasonable and reflects the complexity of the estate.

Thailand
Compensation is less standardized and may depend on the agreement with the heirs or terms in the will.
Executors often serve without formal payment, particularly in family contexts.
 
6. Cross-Border Challenges
For estates involving Germany and Thailand, executors face additional complexities:

Divergent Laws: Executors must navigate conflicting legal frameworks, such as Germany’s mandatory share rules and Thailand’s flexible distribution laws.
Asset Location: Executors may need to manage assets in both countries, requiring local expertise and coordination.
Taxation: Executors must address tax obligations in both jurisdictions, including inheritance tax in Germany and any applicable taxes in Thailand.
 
Conclusion
In Germany, executors operate within a highly regulated framework, ensuring transparency and adherence to legal standards. In Thailand, the role is less formal and focuses on practical asset distribution with minimal court oversight. For cross-border estates, understanding these differences is crucial to appointing the right executor and ensuring smooth estate administration across both countries. Professional advice is highly recommended to navigate the complexities effectively.