Independent Administration

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

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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