China's top court has reaffirmed the importance of the proper handling of estates following a person's death, disclosing five landmark cases that clarify who can serve as an estate administrator and what duties the role entails.

The Supreme People's Court last week highlighted the importance of correctly applying the estate administrator system under the Civil Code, which took effect in January 2021, and instructed judges nationwide to strictly implement the law.

The estate administrator system is considered a major innovation under the code. It serves as a legal tool to balance the secure management of a decedent's assets, the protection of inheritance rights and the lawful settlement of creditors' claims, according to the top court.

The system also helps resolve disputes, limit conflicts, prevents the concealment or misappropriation of assets, and maintains family harmony and social stability, the court said, adding that "it should be used to address public concerns such as estates left unmanaged, assets being damaged or lost, and challenges posed by an aging population".

Under the code, if there is no heir or if all heirs renounce their inheritance, the civil affairs authority or the village committee where the deceased lived before death can serve as the estate administrator. Chen Yifang, chief judge of the top court's First Civil Division, highlighted the necessity of the arrangement, but described it as a form of public service and an alternative option.

"If an heir provides a written renunciation of inheritance — whether to avoid managing the estate or to evade the deceased's debts — but continues to possess or dispose of the estate's assets in practice, that renunciation is invalid," she said.

One of the disclosed cases illustrates the point. An individual surnamed Yang died in 2024, owing 100,000 yuan ($14,700) to two individuals surnamed Hua and Ma. The creditors sued Yang's father, mother and daughter.

During the trial, all three heirs submitted written renunciations of their inheritance, so the court did not support the creditors' claims.

However, after the ruling, the three heirs collected more than 200,000 yuan in funeral subsidies, pension benefits and social insurance payments belonging to the deceased. The creditors, meanwhile, asked the court whether it could appoint the local civil affairs bureau as the estate administrator, given that the heirs had renounced their inheritance rights.

"Although the heirs had formally renounced their inheritance, they had in fact taken control of the deceased's assets, making the renunciation invalid. The heirs therefore must repay the debt," the court said, adding that the civil affairs bureau could not step in as a fallback administrator.

Chen cited the case as an example of "fake renunciation to evade real debt". She emphasized that such behavior must not be tolerated and warned that the rule allowing civil affairs authorities or village committees to act as administrators should not be abused.

She also clarified how an estate administrator should be selected under the code. If the deceased had designated an executor in a will, the court can appoint that person or entity as the administrator in accordance with the deceased's wishes.

If no executor was named, the heirs should choose an administrator. If they cannot reach an agreement, all heirs must serve as joint administrators, according to Chen.

"Only when there is genuinely no heir or when all heirs have validly renounced their rights should civil authorities step in," she said.

Once a person or organization is named estate administrator, they must fulfill duties including taking inventory of the estate, listing all assets and debts, and providing a full and accurate accounting to heirs, banks, property registration authorities and creditors, Chen said.

She added that administrators must also take reasonable measures to protect the estate from damage or loss and must not abuse their authority.

The estate administration system has drawn greater attention following the death of a 46-year-old woman in Shanghai. The deceased, surnamed Jiang, lived alone, had no spouse or children, and had lost both parents. After suffering a cerebral hemorrhage in October, she was cared for by a distant relative before her death in December.

Her case sparked public concern after local authorities encountered difficulties locating her next of kin to make key medical decisions and handle funeral arrangements.

At the end of 2025, the Hongkou district civil affairs bureau was appointed Jiang's estate administrator by a local court after it determined that she had no legal heirs and had left neither a will nor a support agreement.