What is estate administration?

You’ve likely heard of probate, which is the court-supervised process of distributing a person’s property according to their last will and testament. While it can seem daunting, the probate process is probably easier than you think. Not only does it provide guidance on distributing an estate, but it also protects the deceased’s loved ones from missteps or negligence.

But how is your estate managed — and your assets distributed —  if you don’t leave a will behind?  

Without a valid will, your estate must go through a process called estate administration. Estate administration is similar to probate, but it has its own unique process and rules. It can also take more time and effort to complete, because there isn’t a will that explains who should manage your estate or receive your assets.

What is estate administration?

Estate administration is the process of managing the estate of someone who died without a valid will. If someone dies without a valid will (known as dying intestate), their estate is settled via estate administration.

During the estate administration process, the court assigns an estate representative — called an administrator of estate — to manage the deceased's estate. This involves contacting loved ones, identifying and collecting all assets, and distributing these assets according to state intestacy laws.

What is an administrator of estate?

An administrator of estate is the person the court assigns to manage the deceased’s estate and oversee the administration process.

While someone can volunteer to take on this role, they need to be approved by the court before they can act. If no one volunteers, the court will likely assign the next of kin to administer the estate, such as the deceased’s spouse or an adult child.

The court will assign an administrator if:

• The deceased didn’t leave a will
• The existing will doesn’t name an executor
• The will is deemed invalid
• Someone successfully contests the will

Once you’ve been formally approved as administrator, the court will issue you a letter of administration.

Letters of administration are legal documents that prove your authority to act as administrator. They grant you access to the estate’s assets, like financial accounts or real estate property. For instance, a bank may request a letter of administration before releasing the contents of the deceased’s accounts or a safe deposit box.

After you receive a letter of administration, you can start administering the estate.  

The estate administration process

The estate administration process can vary based on the size of the estate and state laws. This also affects how long the process takes. On average, it takes several months to several years.

If you’ve been appointed administrator of estate, you’ll need to:

1. Notify loved ones

One of the first things you’ll need to do is inform the deceased’s family members about their passing and your role in administering their estate. This could include:

• Publishing a death announcement in the local paper
• Texting, emailing, or writing to parents, siblings, children, and other relatives who may inherit something from the estate

In addition to letting them know you’ve been appointed as administrator, you may also want to ask for their help in determining what assets are in the estate.

2. Gather all assets and documentation

You’ll need to create a list of the deceased’s assets, including:

• Real estate property
• Bank accounts
• Vehicles, including cars, campers, and boats
• Pets
• Digital assets (including cryptocurrencies)
• Investment accounts (including stocks and bonds)
• Life insurance policies
• Retirement accounts (including 401(k) and IRA accounts)
• Personal property (including family heirlooms, artwork, collectibles, furniture, and clothing)

Next, gather all documentation for these assets, such as house deeds, car titles, or bank account numbers. You’ll then need to determine the value of each asset, which may require the help of a professional appraiser.

Tracking down the assets in an estate can be a lot of work, especially if the deceased didn’t leave a will. Consider asking family members for help — they may have knowledge about certain assets that you don’t have.

3. Pay outstanding debts

In addition to collecting all of the deceased’s assets, you’ll also need to identify any debts they had. This could include a home mortgage, business loans, or medical expenses.

These debts must be paid before you can distribute assets to the deceased’s loved ones. Don’t worry: As administrator of estate, you don’t have to pay these out of your own pocket. Instead, estate assets are used to cover any expenses related to the estate. If the estate doesn’t have enough money to cover these debts, you may need to sell certain assets (like a home or vehicle) to make up the difference. If this happens, the probate court will work with you to determine which estate assets to sell.

4. File taxes on estate assets

If the estate includes income-generating assets — like investment or bank accounts — you may need to file an income tax return on the estate’s behalf.

Contact an estate attorney or financial advisor for guidance on what income is reported to the estate and how to file taxes for it.

5. Distribute assets to beneficiaries

Once you’ve taken care of all estate obligations, like paying debts and taxes, you can distribute any remaining assets to the deceased’s loved ones.

If the person died without a will, their local court will determine who receives their property by following state intestacy laws. Their spouse or children are generally first in line to inherit, followed by their parents, siblings, and then extended family members.

6. Petition for final distribution

Once you’ve completed your duties as administrator, you’ll petition for final distribution of the estate.

You’ll attend a court hearing where a judge will verify that the estate has been settled and that all debts have been paid, taxes filed, and assets distributed. The judge will then close out the estate and end the administration process. This also ends your duties as administrator.

Make estate administration easy for your loved ones

Estate administration is a necessary part of settling a person’s affairs if they pass away without a will. It involves assigning an administrator to manage the process, identifying beneficiaries, paying debts, and distributing assets according to state laws — all of which can take considerable time and attention to detail.

You can make the process easier on your loved ones by having a valid will. This ensures that your assets are managed by someone you trust and distributed according to your wishes. Having a will lets you take control of your legacy, and also prevents your loved ones from having to make these difficult decisions without your input.

In less time than it takes to bake a batch of cookies or run a load of laundry, you can make your wishes known with FreeWill’s free will-making tool. Simply fill out the questionnaire, print your documents, and execute your will following the provided instructions.