independent administration
DESCRIPTION
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. - PowerPoint PPT PresentationTRANSCRIPT
![Page 1: Independent Administration](https://reader035.vdocuments.mx/reader035/viewer/2022062323/56816023550346895dcf2668/html5/thumbnails/1.jpg)
Independent Administration
![Page 2: Independent Administration](https://reader035.vdocuments.mx/reader035/viewer/2022062323/56816023550346895dcf2668/html5/thumbnails/2.jpg)
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
![Page 3: Independent Administration](https://reader035.vdocuments.mx/reader035/viewer/2022062323/56816023550346895dcf2668/html5/thumbnails/3.jpg)
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
![Page 4: Independent Administration](https://reader035.vdocuments.mx/reader035/viewer/2022062323/56816023550346895dcf2668/html5/thumbnails/4.jpg)
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
![Page 5: Independent Administration](https://reader035.vdocuments.mx/reader035/viewer/2022062323/56816023550346895dcf2668/html5/thumbnails/5.jpg)
Creation of Independent AdministrationTestator may prohibit
independent administration▪ PC § 145▪ EC § 401.001(b)
![Page 6: Independent Administration](https://reader035.vdocuments.mx/reader035/viewer/2022062323/56816023550346895dcf2668/html5/thumbnails/6.jpg)
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
![Page 7: Independent Administration](https://reader035.vdocuments.mx/reader035/viewer/2022062323/56816023550346895dcf2668/html5/thumbnails/7.jpg)
Independent Administration
[continued]
![Page 8: Independent Administration](https://reader035.vdocuments.mx/reader035/viewer/2022062323/56816023550346895dcf2668/html5/thumbnails/8.jpg)
Basic duties of Independent PR1. Act as a fiduciary and in good
faith.
![Page 9: Independent Administration](https://reader035.vdocuments.mx/reader035/viewer/2022062323/56816023550346895dcf2668/html5/thumbnails/9.jpg)
Basic duties of Independent PR2. File inventory, appraisement,
and list of claims (or affidavit in lieu thereof) within 90 days of qualification.
![Page 10: Independent Administration](https://reader035.vdocuments.mx/reader035/viewer/2022062323/56816023550346895dcf2668/html5/thumbnails/10.jpg)
Basic duties of Independent PR3. Set aside homestead,
allowances, and exempt property PC § 146 EC § 403.001
![Page 11: Independent Administration](https://reader035.vdocuments.mx/reader035/viewer/2022062323/56816023550346895dcf2668/html5/thumbnails/11.jpg)
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)
![Page 12: Independent Administration](https://reader035.vdocuments.mx/reader035/viewer/2022062323/56816023550346895dcf2668/html5/thumbnails/12.jpg)
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
![Page 13: Independent Administration](https://reader035.vdocuments.mx/reader035/viewer/2022062323/56816023550346895dcf2668/html5/thumbnails/13.jpg)
Basic duties of Independent PR6. Accounting
Annual accounts are not needed.
Interested person may demand after 15 months▪ PC § 149A▪ EC § 404.001
![Page 14: Independent Administration](https://reader035.vdocuments.mx/reader035/viewer/2022062323/56816023550346895dcf2668/html5/thumbnails/14.jpg)
Basic duties of Independent PR7. Accounting & Distribution
Interested person may petition court after two years▪ PC § 149B▪ EC § 405.001
![Page 15: Independent Administration](https://reader035.vdocuments.mx/reader035/viewer/2022062323/56816023550346895dcf2668/html5/thumbnails/15.jpg)
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
![Page 16: Independent Administration](https://reader035.vdocuments.mx/reader035/viewer/2022062323/56816023550346895dcf2668/html5/thumbnails/16.jpg)
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
![Page 17: Independent Administration](https://reader035.vdocuments.mx/reader035/viewer/2022062323/56816023550346895dcf2668/html5/thumbnails/17.jpg)
Closing the Independent Administration
![Page 18: Independent Administration](https://reader035.vdocuments.mx/reader035/viewer/2022062323/56816023550346895dcf2668/html5/thumbnails/18.jpg)
Closing Independent AdministrationNo requirement that estate be
closed.
Should PR close the estate?▪ Reasons yes▪ Reasons no
![Page 19: Independent Administration](https://reader035.vdocuments.mx/reader035/viewer/2022062323/56816023550346895dcf2668/html5/thumbnails/19.jpg)
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
![Page 20: Independent Administration](https://reader035.vdocuments.mx/reader035/viewer/2022062323/56816023550346895dcf2668/html5/thumbnails/20.jpg)
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)
![Page 21: Independent Administration](https://reader035.vdocuments.mx/reader035/viewer/2022062323/56816023550346895dcf2668/html5/thumbnails/21.jpg)
Closing Independent Administration2. By distributee application
▪ PC § 152▪ EC § 405.009
![Page 22: Independent Administration](https://reader035.vdocuments.mx/reader035/viewer/2022062323/56816023550346895dcf2668/html5/thumbnails/22.jpg)
Closing Independent Administration3. Judicial discharge
▪ PC §§ 149D-149G▪ EC § 405.003
![Page 23: Independent Administration](https://reader035.vdocuments.mx/reader035/viewer/2022062323/56816023550346895dcf2668/html5/thumbnails/23.jpg)
Closing Independent Administration4. By operation of law
▪ In re Estate of Teinert
![Page 24: Independent Administration](https://reader035.vdocuments.mx/reader035/viewer/2022062323/56816023550346895dcf2668/html5/thumbnails/24.jpg)
Closing Independent AdministrationPartition
PR can go to court for help with partitioning estate property.▪ PC § 150▪ EC § 405.008