Succession Executors and Administrators Explained:
Administration of an estate is sometimes required when there are issues that need attention before the heirs or legatees can be put in possession of estate assets. Some of the issues that may necessitate an administration include providing for debts or claims, liquidating investments, selling real estate, or providing an allowance for a surviving spouse. If there is no need an administration, then the heirs or legatees can be put into possession of the estate assets without administration, which saves time and costs.
When an administration is necessary, the estate will need a succession representative to resolve the issues and disperse the assets. If the decedent died testate, the last will and testament should have appointed an executor of the will. If the will did not appoint an executor or if the decedent died intestate, then the court will have to qualify an estate administrator.
An executor or administrator must be 18 years of age or older, be mentally competent, and not have a felony criminal record. In rare instances, the court could reject a designated executor if there is reason to believe the executor is not of good moral character. However, the court will generally permit most competent adults to serve as an executor of a will.
A last will and testament could also appoint an independent administrator. Generally, an executor or administrator is a court-supervised position meaning he or she will have to obtain permission from the judge prior to acting on the estate’s behalf. An independent administrator does not have that burden. Further, an independent administrator does not have the same bond and accounting requirements as a court-supervised administrator.
Executors are not required to accept the appointment. Further, executors and administrators can quit an anytime if the job becomes too difficult. The representative is entitled to reasonable compensation, or in an amount specified in the last will and testament.
The Administration Process:
The administration process in Louisiana usually starts with filing a Petition to Probate Last Will and Testament. The court will issue an order admitting the will to probate and approving the executor. Letters Testamentary will also be issued which will outline the duties of the executor who will present the letters to anyone that the estate has business with.
If the decedent died intestate, then a Petition for Appointment of Administrator is filed and the court will go through the process of picking a qualified administrator. Similarly, Letters of Administration will be issued.
The executor or administrator is required to file an Oath of Office and must post a bond in an amount set by law. The bond requirement can be waived in a last will and testament. The purpose of the security is to protect the heirs or legatees from misappropriation of funds by the executor or administrator.
Creditors should be given notice and an opportunity to present claims. All debts of the estate must be paid or provided for before the succession representative distribute assets to heirs or.
After all the estate business is taken care of the executor or administrator may take steps to place the heirs or legatees into possession of the estate assets. The process from here is similar to a succession without administration. A Petition for Possession will be filed along with an Affidavit of Death, Jurisdiction, and Heirship.
The executor or administrator will be required to prepare and file a Sworn Detailed Descriptive List of Assets and Liabilities. This is an inventory all assets and debts of the estate. The fair market value of each asset and the balance of each debt must be stated in the descriptive list. The descriptive list should be filed early on in the process so that it doubles as the official inventory. However, a final accounting or Proces Verbal will have to be filed at the end of the succession detailing all transactions that were carried out.
A Judgment of Possession can then be issued which actually transfers ownership of the assets from the estate to the heirs or legatees. The Judgment of Possession can then be presented to institutions such as banks and the DMV and should be recorded in the conveyance records of each parish in which the estate owned immovable property. If the decedent owned real estate in another state, then an ancillary probate must be opened in each other state.
The Role of the Executor or Administrator:
The succession representative is responsible for all aspects of settling the estate. Essentially, the representative takes the place of the decedent until the assets have been distributed and the estate has been closed.
The executor or administrator is responsible for locating the testament and filing it with the court; obtaining copies of the death certificate; notifying creditors; notifying government agencies to stop benefits; opening a succession account with a bank; paying bills and taxes from the estate assets; protecting assets for the benefit of the heirs or legatees; taking an inventory of all estate assets; obtaining appraisals of estate assets; managing estate asset; communicating with beneficiaries and creditors; selling or liquidating assets to distribute the proceeds to heirs or legatees; making court appearances if the will is challenged or other challenges are raised; asset distribution; and closing the estate which includes obtaining a release and discharge of the executor or administrator upon completion of the succession.
Challenges to Estate Executors and Administrators:
Disputes often arise over interpreting the last will and testament. This is especially true for handwritten wills. Wills frequently include ambiguous language that makes it difficult to determine the intentions of the decedent. Executors also may be tasked with managing complex assets such as businesses or commercial properties. Valuing these assets can be difficult and contentious as well.
Errors in the filing process can lead to complications or legal challenges. Executors and administrators must also correctly distribute assets and notify creditors. If heirs or legatees suspect an executor or administrator is mismanaging assets or misappropriating funds, they can seek to have the succession representative removed.
New Orleans Succession Attorneys:
We are a Gretna law firm that has served the New Orleans area since 1980. Our succession lawyers are experienced at handling all types of successions in Louisiana including administrations. We can help guide executors and administrators through the probate process. We take pride in offering a personal and trusted experience. Call us today for a free consultation and find out why so many of our clients come back to us.
