What is Estate Administration? 

Navigating estate administration can feel overwhelming, but with the right guidance, you can simplify the process and protect your legacy. At Doyle Law Offices, our estate planning attorneys understand the importance of managing an estate with care and precision.

Join us as we break down the essential steps of the probate process, explain the legal nuances involved, and offer advice based on years of experience in litigating the estate administration process. Whether you're planning ahead or handling the complexities of a loved one's estate, our goal is to provide you with clear, accessible information to help you move forward confidently.

Understanding Estate Administration When a Loved One Dies

Key Attributes of Estate Administration

• Asset Identification: Cataloging all of the estate's assets including property, investments, and personal belongings.
• Debt and Tax Settlement: Paying off any debts and handling estate tax returns and other tax obligations.
• Legal Oversight: The estate's personal representative operates under the guidelines and supervision of the probate court.
• Asset Distribution: Distributing remaining assets to beneficiaries as directed by the will or state law.

What is Estate Administration vs Letter of Administration?

In such cases, the court issues a Letter of Administration—a legal document that formally appoints an administrator to carry out the estate administration process.

Attributes of Estate Administration vs Letter of Administration

Estate administration:

• Encompasses the entire process of settling the deceased person's property and other assets.
• Is managed by an executor if a will exists, or an administrator if a will does not exist.
• Involves tasks such as valuation of the decedent's assets, debt settlement, and distribution of probate assets.

Letter of Administration:

• Is a legal document issued by the probate court.
• Appoints an administrator to manage the estate when no executor is named or available.
• Provides the legal authority needed to perform the duties involved in estate administration.

Consequences of Letter of Administration Without Will

A Letter of Administration without a will means that the court appoints an administrator to settle the estate following state intestacy laws, rather than the decedent’s personal wishes. This can lead to challenges including family disputes, prolonged court involvement, and increased costs.

Consequences include:

• State Law Distribution: Assets are allocated based on intestacy laws rather than the wishes of the deceased.
• Family Disputes: Lack of clear directives can cause disagreements between the surviving spouse, children, siblings, and or other family members.
• Extended Process: With more court oversight, the court-supervised estate administration process may delay resolution.
• Increased Expenses: Legal and administrative fees related to the probate process tend to be higher.

Does the Decedent Have a Will in Place?

Estate administration carries out the deceased's final wishes and settles any outstanding financial obligations, such as taxes, debts, and asset distribution. The process begins by determining whether the decedent had a will, trust, or any other estate plan in place.

Testate Estate: What Do You Do When Someone With a Will Dies?

The North Carolina General Statutes provide a definite set of rules that must be followed in order to administer estate procedures. 

Documents you need to get started: 

• Last Will and Testament
• Application For Probate And Letters
• Death Certificate
• Letters of Testamentary

Step 1: Locate the Last Will and Testament 

A properly drafted Last Will and Testament will identify an Executor who is legally responsible for making sure that the will and the estate are properly handled. In these kinds of estates, the Executor must locate the original Last Will and Testament. If the original Last Will and Testament document is lost, a copy may be able to be used, but the original is generally required.

Step 2: Complete Application for Probate and Letters 

The Executor named in the will then fills out an Application For Probate And Letters and takes these along with an original death certificate to the Clerk of Superior Court in the county where the decedent lived at the time of death.

Step 3: Submit Documents for Review

Upon submission of satisfactory documents, the Clerk of Superior Court will issue to the Executor a document known as Letters of Testamentary. These Letters are required in order that the Executor can begin to address the affairs of the deceased person and administer the estate.

This is the beginning of a process where the Executor is required to follow the laws and ultimately handle the estate of the deceased according to the provisions of the will. 

Intestate Estate: What Do You Do When Someone Dies Without a Will?

In situations where the person died and did not have a will, the estate is administered through intestate succession.

Documents you need to get started: 

• Application For Letters Of Administration
• Death Certificate
• Letters of Administration

Step 1: Complete Application for Letters of Administration

In the situation that no will was left behind, you must fill out an Application For Letters Of Administration and apply to the Clerk of Superior Court for a document known as Letters of Administration. The statutes stipulate the priority of people who are qualified to apply. Refer to “Qualification as Personal Representative” in the Estate Procedures handout to see who qualifies.

Step 2: Submit Documents for Review

Once the Application for Letters of Administration along with a death certificate is submitted to the Clerk of Superior Court, the Administrator is then empowered and obligated to follow the laws and administer the estate of the deceased in a manner similar to an Executor, but instead of following a will, the Administrator handles the estate according to the law of intestate succession.

Small Estate Administration: What if the Deceased's Estate Isn't Very Large?

Some estates with a value of less than $20,000 can be handled by way of small estate administration. In these instances, an affidavit is submitted by a Collector to deal with the assets and debts of the deceased.

Important Estate Planning Terms and Resources

After a loved one dies, it’s a good idea to familiarize yourself with some of the legal terminologies you will come into contact with along this journey. Knowing the legal jargon used will enable you to make sense of and understand the discussions and documents surrounding asset distribution. 

Here are some important terms used during the estate administration process: 

• Decedent - the person who died. 
• Estate - all of the money and property owned by the person at the time of death.
• Will - the legal document specifying how and to whom your assets are distributed after death. 
• Trust - a legal document outlining how assets are to be managed and distributed after death, by use of a trusted third party who acts in the best interest of the decedent.
• Testate - when someone has a will in place at the time of death. 
• Executor - the person named in the will to carry out the wishes of the deceased after death. 
• Letters of Testamentary - Official documents provided by the Clerk of Superior Court that grants the Executor the authority to carry out their responsibilities as executor of a will.
• Application For Probate And Letters - Form (AOC-E-201) submitted by the Executor to apply for the Letters.
• Intestate - when the decedent died without a will in place. 
• Administrator - the person who takes charge of the estate if no will is left at the time of death. 
• Letters of Administration - Official documents provided by the Clerk of Superior Court that grant the Administrator authority to carry out their responsibilities as administrator of an estate.
• Application For Letters Of Administration - Form (AOC-E-202) submitted by the Administrator to apply for the Letters.
• North Carolina Estate Procedures - for more procedural information for the state of North Carolina, visit Estate Procedures for Executors, Administrators, Collectors By Affidavit, and Summary Administration 

Estate Administration FAQ

How long do you have to file probate after death in North Carolina?

In North Carolina, probate should typically be initiated within six months of the decedent’s death, though it’s wise to consult a probate attorney to ensure timely compliance with all legal requirements.

Do I need to pay taxes for my deceased relative?

Typically, any taxes owed by a deceased relative are settled within the estate before assets are distributed to beneficiaries. The estate must file income tax returns and pay any federal or state taxes owed, if applicable. In many cases, heirs do not directly pay these taxes, but it’s important to consult with an estate planning attorney to understand your specific situation.

Am I responsible for paying the outstanding bills of my deceased loved one?

Typically, the deceased person’s outstanding bills are paid from their estate during probate, not by the heirs personally. As an executor or administrator, you’ll use the estate’s assets to settle these debts before distributing any remaining property to beneficiaries. However, if you were a co-signer or otherwise legally responsible for a debt, you may still be held accountable. It’s important to consult with an estate planning attorney to understand your specific obligations.

My parent passed away and I'm the executor, what should I do?

First, secure important documents such as the will and any financial records. Then, notify family members and relevant institutions, contact a reputable estate planning attorney who can provide legal advice, and begin the probate process by filing the necessary paperwork with the court.

Do I need an attorney for the Estate Administration process in NC?

While it’s possible to handle the process on your own, consulting an experienced estate planning attorney can help you navigate legal complexities and ensure that all steps are handled correctly.

Speak to an Experienced Estate Administration Attorney 

If you are the one responsible for handling the deceased’s estate, having access to quality legal services for estate administration is invaluable. At The Doyle Law Offices P.A., we serve clients throughout Raleigh, Apex, Wake Forest, Cary, and the surrounding communities.

Please fill out our contact form below or call us today at  (984) 235-1067 and let us help guide you to settle the deceased person's assets and estate in a compassionate, professional manner.