There Is a Simple Way to Administer Probated Estate Property

If you are the administrator or executor of an estate under probate in California, many of your actions related to buying, selling or exchanging property, payment of taxes or creditors' claims, or making repairs or improvements to property are submitted to the court's approval.

The procedure to request and obtain authorization from the court can be cumbersome. This is why the California Probate Act allows the representative to do many things without having to obtain prior permission, under the Independent Administration of Estates Act (IAEA).

The IAEA is designed especially for simple estates, even if large in value, where no disputes, conflicts or contests are expected among heirs and beneficiaries. Settling the estate under the IAEA can potentially save a lot of time and paperwork.

How does it work?
When you fill out your Petition for Probate form, you ask to be granted either full or limited authority to administer under the IAEA.

Whereas full authority gives all the powers under the Act, limited authority does not grant you the power to sell or exchange real property, grant an option to buy real property or borrow money secured by a lien on real property. In these cases you will have to ask the court's permission.

Under the IAEA, the personal administrator is empowered to do the following, without court approval or notifying the beneficiaries:

• Allow, pay, reject or contest any claim against the estate
• Sell listed securities
• Make repairs or improvements to estate property
• Sell perishable or depreciating property
• Accept a deed in lieu of foreclosure
• Pay taxes and expenses of administration

In most cases, if you want to buy estate property for your own account, exchange estate property for your own, or pay your own claims against the estate, then you will have to obtain prior approval from the court.

Other actions can be taken without court supervision, provided heirs and beneficiaries who are interested in these actions are given prior notice. This would be the case when selling/exchanging real estate or borrowing/investing funds (except in savings accounts or short term obligations).

Talk to San Diego probate attorney Scott Grossman about your situation and any questions you might have. Call us at (951) 683-3704 or (866) 840-0000 for your FREE 30-minute telephone consultation.

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