Independent Administration Creation of Independent Administration 1 Express

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Independent Administration

Independent Administration

Creation of Independent Administration � 1. Express language in the will ▪ PC §

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

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

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 ▪

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

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]

Independent Administration [continued]

Basic duties of Independent PR � 1. Act as a fiduciary and in good

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

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

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

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 PR � 5. Selling estate property ▪ PC § 145

Basic duties of Independent PR � 5. Selling estate property ▪ PC § 145 C ▪ 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

Basic duties of Independent PR � 6. Accounting Annual accounts are not needed. Interested person may demand after 15 months ▪ PC § 149 A ▪ EC § 404. 001

Basic duties of Independent PR � 7. Accounting & Distribution Interested person may petition

Basic duties of Independent PR � 7. Accounting & Distribution Interested person may petition court after two years ▪ PC § 149 B ▪ EC § 405. 001

Removal of Independent PR �Authority ▪ PC § 149 C ▪ EC § 404.

Removal of Independent PR �Authority ▪ PC § 149 C ▪ 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

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 the Independent Administration

Closing Independent Administration �No requirement that estate be closed. Should PR close the estate?

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 §

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

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

Closing Independent Administration � 2. By distributee application ▪ PC § 152 ▪ EC § 405. 009

Closing Independent Administration � 3. Judicial discharge ▪ PC §§ 149 D-149 G ▪

Closing Independent Administration � 3. Judicial discharge ▪ PC §§ 149 D-149 G ▪ EC § 405. 003

Closing Independent Administration � 4. By operation of law ▪ In re Estate of

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

Closing Independent Administration �Partition PR can go to court for help with partitioning estate property. ▪ PC § 150 ▪ EC § 405. 008