TN 16 (09-12)
RS 02101.630 Fiduciaries (other than Trustees)
An administrator is someone a court appoints to manage and distribute the estate of a person who died without leaving a will or naming an executor.
2. Court receiver
A court receiver is a court appointed officer who is responsible for the property of others pending a judgment or determination.
An executor is someone a judge appoints in a will to execute its provisions. Executors and administrators occupy a position of trust in the administration and settlement of an estate.
A fiduciary is someone who is given property or power for the benefit of another, including:
A receiver is someone a court administrator appoints to manage a bankrupt business or to take possession of property during litigation (i.e., a lawsuit).
B. Coverage status of executors and administrators
Executors and administrators have responsibilities similar to those of a trustee. Therefore, the same coverage rules apply to executors, administrators, and trustees. For information on the coverage status of trustees, see RS 02101.600F.
C. Types of receivers
Usually, a receiver liquidates and closes a business, or operates a business temporarily. Federal and state statutes determine how to appoint receivers. There are two types of receivers:
General receivers possess and control all (or substantially all) of someone’s property, and
Custodial receivers take charge of limited or specific property, and may not have the authority to liquidate property.
D. Court receivers
A federal or state statute may provide that creditors of a corporation that is insolvent, or in danger of becoming insolvent, may apply to a court for appointment of a receiver. These receivers are known as court receivers. If the court of equity appoints the receiver, they are also referred to as an equity receiver.
The following are the court receiver’s duties:
perform their services under the general jurisdiction and direction of the court;
powers are usually limited to those the court grants in the appointment order or in later orders;
the court determines the pay;
do not take title to the property, but merely possess and control the property for the court;
manage the property on behalf of the parties that are ultimately entitled to it; and
sometimes regarded as trustees for those persons to whom he or she stands in a fiduciary relationship.
E. Statutory receivers
Some state statutes allow a corporation to appoint its own receiver when the corporation wishes to dissolve itself. In cases of bank corporations, a State Department, with general jurisdiction over state banks, may appoint a receiver for the bank. Sometimes a court must confirm the appointment. These appointed receivers are known as statutory receivers.
A statutory receiver derives powers and authority from the statute that appoints him or her. The appointing body determines the salary. The state statute may also provide that the receiver take title to the property. It may further provide that creditors may remove a receiver, and demand the court to appoint a receiver they choose.
F. Coverage status of receivers
The usual common-law rules apply in determining the coverage status of receivers. Cases may arise where there is sufficient control over the receiver’s services, exercised or reserved, either in the court or the property owner to make the receiver an employee. Because the receiver acts in a fiduciary capacity, we usually do not find an employer-employee relationship between a receiver and the property owner(s), or the court. For information on receivers whose services may constitute a trade or business, see RS 01802.033.
G. Developing the coverage status of fiduciaries and receivers
To determine the coverage status of a receiver: