1. Express language in the will ▪ PC § 145(b) ▪ EC § 401.001 ▪ In re Dulin’s Estate – p....

Independent

Administration

Creation of Independent Administration

1. 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 Administration

2. 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 Administration

Obtaining 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 Administration

Testator may prohibit independent administration▪ PC § 145▪ EC § 401.001(b)

Creation of Independent Administration

Court 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 PR

1. Act as a fiduciary and in good faith.

Basic duties of Independent PR

2. File inventory, appraisement, and list of claims (or affidavit in lieu thereof) within 90 days of qualification.

Basic duties of Independent PR

3. Set aside homestead, allowances, and exempt property PC § 146 EC § 403.001

Basic duties of Independent PR

4. 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 PR5. 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 PR

6. Accounting Annual accounts are not needed.

Interested person may demand after 15 months▪ PC § 149A▪ EC § 404.001

Basic duties of Independent PR

7. Accounting & Distribution Interested person may petition

court after two years▪ PC § 149B▪ EC § 405.001

Removal of Independent PR

Authority▪ PC § 149C▪ EC § 404.003

Who requests? Any interested person Court on its own motion

Notice by personal service is required

Removal of Independent PR

Grounds 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 Administration

No requirement that estate be closed.

Should PR close the estate?▪ Reasons yes▪ Reasons no

Closing Independent Administration

1. 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 Administration

1. 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 Administration

2. By distributee application▪ PC § 152▪ EC § 405.009

Closing Independent Administration

3. Judicial discharge▪ PC §§ 149D-149G▪ EC § 405.003

Closing Independent Administration

4. By operation of law▪ In re Estate of Teinert

Closing Independent Administration

Partition PR can go to court for help with

partitioning estate property.▪ PC § 150▪ EC § 405.008