My response:
Letters testamentary, or of administration, formalize the personal representative's appointment by the Probate court, and allows his or her authority to act on behalf of the estate throughout the probate proceedings.
An "executor" is the person designated in a will to administer a decedent's estate. An "administrator" is appointed to administer an estate either when there is no will, when an executor has not been named in a will, or when the person named in the will as executor is unable to act. We refer to "personal representatives" in this memorandum, a term which includes both executors and administrators.
1. Duties of Personal Representatives
In general, your duties are to collect and conserve, and manage and control the assets of the estate, pay the debts of the decedent, pay all taxes due from the decedent and the estate, and distribute the balance of the estate according to the will or, if there is no will, in accordance with the laws of intestate succession. The law expects you to use care and diligence in carrying out these duties. California law also provides an orderly procedure to accomplish all these steps.
As a personal representative you should do the following:
a. Take possession of all the estate's property insofar as
practicable. Joint tenancy property, life insurance proceeds, and
retirement plan benefits (unless payable to the estate) are not
included in the property under the jurisdiction of the probate
court;
b. Collect all dividends, interest and other income, and deposit all
such items in an interest-earning estate bank account (or
accounts) until the estate is closed;
c. Keep a detailed account of all your receipts and disbursements for
the estate: List the date, source, and amount of each receipt and
the date, nature of payment, and amount of each disbursement;
d. File all tax returns and pay all taxes--we will advise you
regarding the tax returns that will be required and when they
must be filed; and
e. Keep estate property adequately insured (we recommend early review
of all casualty, property and liability insurance policies and of
the general need for insurance).
Without consultation with your attorney, YOU SHOULD NOT DO ANY OF THE FOLLOWING:
a. Sell any property of the estate;
b. Give away any estate property;
c. Lease estate property;
d. Pay or compromise any debts or claims against the estate (including
funeral bills and/or expenses of the decedent's last illness);
e. Sell stock, exercise subscription rights, or buy stocks or bonds
for the estate;
f. Distribute estate property to any devisee or heir;
g. Deposit estate funds in your personal account or otherwise
commingle estate property with your own;
h. Act without the concurrence of the other personal representative(s)
if two or more have been appointed by the probate court.
2. Before Formal Administration Begins
Technically, the administration of a decedent's estate does not begin until the will, if any, has been admitted to probate by the Superior Court and Letters Testamentary or Letters of Administration have been issued. However, prior to the appointment of a personal representative, the decedent's family, the nominated executor, and/or other concerned persons should take the necessary steps to:
a. Determine and carry out the decedent's wishes with respect to
funeral, burial, cremation, etc.;
b. Locate the original will;
c. Maintain the decedent's home;
d. Protect the decedent's property;
e. Provide for support of the decedent's dependents; and
f. Notify the State Director of Health Services (if the decedent was
receiving Medi-Cal benefits).
3. Issuance of Letters Testamentary or Letters of Administration
Within 30 days after a decedent's death, the person who has custody of his or her will must file it with the County Clerk in the county of the decedent's residence and send a copy to the named executor. The person named as executor and some other interested person files a petition with the Superior Court asking that the will and any codicils (amendments) to the will be admitted to probate as the decedent's will. The petition also asks that the court appoint the person named in the will as executor. When the appointment is made, Letters Testamentary are issued.
If there is no will, the petition for probate asks that the court appoint the petitioner or some other person as administrator of the estate. When the appointment is made, Letters of Administration are issued.
The document called "Letters Testamentary" or "Letters of Administration" is a certificate issued by the County Clerk evidencing your appointment and authority as personal representative. During the administration of the estate, certified copies of the Letters may be requested by banks, title companies, transfer agents, tax authorities and others.
There is much, much more you'll need to know. Speak with your probate attorney for specifics.
IAAL
