If you are attempting to probate a will in Texas, the law stipulates that a dependent executor or administrator must be appointed. In some cases an independent executor or administrator may be appointed if requested, but many people prefer to use a dependent administrator. Below is a brief overview of dependent admin in probate court.
The biggest difference between an independent or dependent administrator is the fact that a dependent administrator must receive the approval of the court for almost all of the actions they perform. The must receive approval for:
Payment of fees relating to professional services required for the probate of the will including accountants and attorneys
- The sale of any real estate
- The sale of any personal property
- The sale of assets such as cars
- The repayment of debts owed by the deceased
- The payment of expenses due the administrator during the course of the probate period.
A dependent administrator must petition the court, in writing, to receive approval to perform any of these tasks.
Many people like the fact that dependent administrators must be bonded. A bond is basically insurance that the administrator will perform their duties honestly and ethically. They must pay a bonding company to provide the insurance for them. This is especially useful in cases where the estate is particularly large or involves a large amount of assets.
Another benefit of the dependent administration is protection in the case of estates that involve heirs that are likely to argue or fight over assets and debts. Because the court approves each step of the process, a dependent administrator can typically avoid future legal action against the estate.
In cases where there is a large amount of debt, the dependent administrator has a very specific set of guidelines governing how debts are repaid. Creditors must carefully apply for repayment of the monies owed to them. They must fill out specific forms; provide information and file within a specific time frame.
While a dependent administration must be requested within the allotted four year time period, there is an additional time constraint placed on them. Even if the estate is settled, the estate must be remain open. In many cases it makes the process longer than an independent process would be.
Dependent administrators are also bound by accounting requirements. They must submit, on a yearly basis, a complete accounting of the estate. This includes information on monies earned by the estate through interest or the sale of assets as well as any expenses paid, either to the administrator or professional fees such as accountants, attorney or legal fees. This accounting must also be completed at the end of the probate. Information must also be provided regarding outstanding debts and assets.
At the end of the day, dependent administration tends to offer the estate a higher degree of protection as opposed to an independent administration. Unfortunately it can also be a much longer process. Consult a probate attorney to determine which will work best for your particular case.