Independent Administration
Creation of Independent Administration1. Express language in the will
▪ PC § 145(b)▪ EC § 401.001
▪ In re Dulin’s Estate – p. 193
▪ Questions 1-2 – p. 196
▪ Relevance of mere bond waiver
Creation of Independent Administration2. By agreement of all will
beneficiaries▪ PC § 145(c)▪ EC § 401.002
3. By agreement of all heirs▪ PC § 145(e)▪ EC § 401.003
Creation of Independent AdministrationObtaining agreement of
distributees▪ PC § 145▪ EC § 401.004
Examples:▪ Minor = guardian of the person▪ Testamentary trust = current income
beneficiaries▪ Life estate = life tenant
Creation of Independent AdministrationTestator may prohibit
independent administration▪ PC § 145▪ EC § 401.001(b)
Creation of Independent AdministrationCourt may waive bond
Even if will did not provide for bond waiver
Even if decedent died intestate▪ PC § 145(p)▪ EC § 401.005
Independent Administration
[continued]
Basic duties of Independent PR1. Act as a fiduciary and in good
faith.
Basic duties of Independent PR2. File inventory, appraisement,
and list of claims (or affidavit in lieu thereof) within 90 days of qualification.
Basic duties of Independent PR3. Set aside homestead,
allowances, and exempt property PC § 146 EC § 403.001
Basic duties of Independent PR4. Creditors
▪ PC § 146▪ EC Chapter 403, subchapter B
Give notices as in dependent administration
Creditors have basically the same rights and duties
Classify and pay claims as in a dependent administration
Problems 1-3 (p. 199)
Basic duties of Independent PR 5. Selling estate property
▪ PC § 145C▪ EC § 402.052
Even without power of sale clause in a will, PR may sell estate property in the same situations that a dependent PR could sell.
PR can also get court to grant a power of sale with consent of distributees if:▪ No will provision▪ Intestacy
Basic duties of Independent PR6. Accounting
Annual accounts are not needed.
Interested person may demand after 15 months▪ PC § 149A▪ EC § 404.001
Basic duties of Independent PR7. Accounting & Distribution
Interested person may petition court after two years▪ PC § 149B▪ EC § 405.001
Removal of Independent PRAuthority
▪ PC § 149C▪ EC § 404.003
Who requests? Any interested person Court on its own motion
Notice by personal service is required
Removal of Independent PRGrounds
Basically, same as for removal of dependent PR
In re Estate of Miller (p. 201)
Kappus v. Kappus (Tex. Sup. Ct.)▪ Legislative reaction
Closing the Independent Administration
Closing Independent AdministrationNo requirement that estate be
closed.
Should PR close the estate?▪ Reasons yes▪ Reasons no
Closing Independent Administration1. By Affidavit – The closing
report▪ PC § 151▪ EC § 405.005
When▪ All debts paid (or paid as much as
possible), and▪ Residue (if any) given to heirs and
beneficiaries Closing report is like a mini-
accounting
Closing Independent Administration1. By Affidavit – The closing
report Verified by affidavit Court takes no action No impact on PR liability Future claimants cannot look to ex-
PR Burke (p. 210)
Closing Independent Administration2. By distributee application
▪ PC § 152▪ EC § 405.009
Closing Independent Administration3. Judicial discharge
▪ PC §§ 149D-149G▪ EC § 405.003
Closing Independent Administration4. By operation of law
▪ In re Estate of Teinert
Closing Independent AdministrationPartition
PR can go to court for help with partitioning estate property.▪ PC § 150▪ EC § 405.008
Top Related