Estate Administration
Estate Administration refers to the process of managing and distributing a deceased person’s estate, which includes all assets, debts, and liabilities. This process is carried out according to the deceased’s wishes as outlined in their will, or in accordance with state laws if no will exists (intestate succession).
The Estate Administration process typically involves several key steps:
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Filing the Will and Petition: If a will exists, it must be filed with the probate court along with a petition to open the estate. This initiates the legal proceedings for administering the estate.
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Appointment of Executor or Administrator: The court appoints an executor (if named in the will) or an administrator (if no will exists) to oversee the estate’s administration. The appointed individual is responsible for managing the estate’s affairs.
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Inventory and Appraisal of Assets: The executor or administrator must identify, collect, and appraise all assets of the estate. This can include real property, bank accounts, investments, and personal belongings.
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Settling Debts and Liabilities: Before distributing assets to beneficiaries, the estate must settle any outstanding debts, taxes, and claims against it. This may involve paying off creditors and filing estate tax returns.
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Distribution of Assets: Once all debts and taxes are settled, the remaining assets are distributed to the beneficiaries as specified in the will or as dictated by state intestacy laws.
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Final Accounting and Closure of the Estate: The executor or administrator must provide a final accounting to the probate court, detailing all transactions and the distribution of assets. Upon approval, the estate can be officially closed.
In Texas, the Estate Administration process is governed by the Texas Estates Code, which outlines specific procedures and requirements. Texas allows for both independent and dependent administration, offering flexibility in how estates are managed. In dependent administration, the court oversees the process closely, while independent administration allows the executor more freedom to manage the estate without court intervention.
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