When a person passes away, their property is distributed through estate administration. The estate administration process may begin when a letter of administration is issued, which authorizes a person to administer a deceased person’s estate. In most cases, a surviving family member of a decedent, such as a spouse, adult child, sibling, or parent, will petition the court for a letter of administration.
In an estate proceeding, the court can issue a letter of administration that appoints someone to serve as the administrator of a deceased person’s estate. Courts issue letters of administration in cases where a person has passed away without a will. However, when someone dies with a will in place, the court will issue letters testamentary to appoint the person designated in the will as the executor of the decedent’s estate.
When Do You Need a Letter of Administration?
Your family may need a letter of administration when a loved one dies with assets in their estate. The letter of administration is evidence that the court granted the administrator the authority to manage the decedent’s estate. As an administrator, you’ll need a letter of administration to access assets, such as bank or brokerage accounts, safety deposit boxes, and long-term storage units. You’ll need the letter to handle transactions with the decedent’s estate assets, such as selling real estate. The letter of administration ensures that only the person appointed by the court may access the deceased person’s assets.
The Process of Obtaining a Letter of Administration
Obtaining a letter of administration involves several steps, including:
- Filing a petition requesting letters of administration with the probate court in the county where the deceased lived
- Sending notice of the petition to the decedent’s heirs or other interested parties
- Attending a court hearing, if necessary
- Receiving the letter of administration
You’ll need to include a copy of the death certificate with the petition, as well as information about where the deceased passed away, where they last lived, the contact information of the heirs, and a list of the deceased’s assets.
Responsibilities and Limitations of an Administrator
When you receive the letter of administration, you have the authority to handle the decedent’s assets. Some of the responsibilities of an administrator include:
- Locating, securing, and appraising estate assets
- Paying the decedent’s debts and the costs of estate administration
- Paying the decedent’s final income taxes and applicable inheritance and estate taxes
- Distributing the remainder of the estate to the decedent’s heirs per state intestate succession laws
As an administrator, you’ll owe fiduciary duties to the estate and its heirs, including the duties of loyalty, good faith, and fair dealing. Fiduciary duties prevent you, the administrator, from:
- Misappropriating or usurping estate assets
- Engaging in self-dealing
- Acting under a conflict of interest
- Acting imprudently
- Discriminating against specific heirs
Furthermore, as an administrator, you’ll remain subject to the court’s supervision. In some circumstances, you may have to seek court approval for particular transactions or to file an accounting of actions taken on behalf of the estate.
An administrator who misuses their authority or acts with gross negligence may be personally liable to compensate the estate or its heirs for financial losses. If you engage in any of these activities, the court may remove you from your position.
Contact an Estate Administration Attorney Today
After your loved one’s passing, you may need a letter of administration authorizing you to manage their estate to settle remaining debts, pay taxes, and distribute inheritances to heirs and beneficiaries. An experienced estate administration lawyer can help you obtain this letter and can handle the legal burden of the case on your behalf. Contact the law firm of Silverman, Tokarsky & Forman, L.L.C., today for a consultation with one of our knowledgeable attorneys, and learn more about what we can do for you.
