What is 'Estate Administration'?

"Estate Administration" refers to the winding up of a deceased's financial and personal affairs. In general, someone is appointed by the court or authorized by statute to act as the estate's personal representative. That person then gathers the deceased's assets, pays any authorized debts owed by the deceased, files any tax returns that may be required, and then distributes the remaining assets of the deceased to her heirs. Administration of an estate occurs even when the deceased died without a will ("intestate") by following certain statutory procedures.

How is the "Personal Representative" of an estate chosen?

In general, the deceased identifies the person to act as her "Personal Representative" in her will; in these circumstances, the personal representative is known as an "Executor." However, if the deceased died without a will, or if the person identified in the deceased's will is not able to serve as Personal Representative, the Probate Court will appoint a person to act on behalf of the estate; in these circumstances, the Personal Representative is known as an "Administrator." Such appointments are made by the Probate Court based upon applications from the deceased's relatives or friends using statutory guidelines.

How does the "Personal Representative" know what to do?

In general, the personal representative must follow the procedures set forth in the Texas Probate Code. Most courts prefer that the Personal Representative engage the services of a probate lawyer to assist in properly administering the deceased's estate. Because Texas provides for a variety of methods to administer an estate with limited court supervision, under most circumstances, the costs of such professional services are very reasonable. Similarly, the Personal Representative should engage the services of a tax professional (and perhaps an investment advisor) in the event that she must file tax returns or administer the deceased's estate over a long period of time. The Personal Representative is not required to pay for such professional services herself; such expenses may be deducted from the deceased's estate as an administrative expense.