The Difference Between Letters Testamentary and Letters of Administration

KEY TAKEAWAYS:

• Letters Testamentary are issued when there is a valid will. They give the executor named in the will legal authority to manage and settle the estate.
• Letters of Administration are generally issued when there is no valid will. They authorize a court-appointed administrator to handle the estate.
• Why these letters matter. The letters essentially establish the fiduciary's authority to say, “I am legally authorized to act for this estate.

When someone dies in New York, family members often hear that they need to obtain “letters” before they can access accounts, sell property, or handle other estate matters. These are not letters in the ordinary sense. They are official documents issued by the Surrogate’s Court that establish who has legal authority to act for the estate. Here, our knowledgeable estate attorneys at Landskind & Ricaforte Law Group, P.C. explain the difference between these two documents and the rules governing them.

Letters Testamentary

Letters Testamentary are generally issued when the person who died left a valid will naming an executor. Letters Testamentary are issued to an executor after the Surrogate’s Court admits a will to probate and approves the executor’s appointment.

Being named as executor in a will does not, by itself, give that person immediate authority to manage the estate. The executor generally must file a probate proceeding in Surrogate’s Court. Once the court accepts the will and determines that the executor is qualified to serve, it can issue Letters Testamentary. Those letters give the executor authority to take steps such as the following:

• Identifying and collecting estate assets
• Accessing estate bank and investment accounts
• Paying valid debts, expenses, and taxes
• Managing or selling estate property when appropriate
• Distributing remaining assets according to the will

In other words, the will identifies whom the deceased wanted to serve, while the Letters Testamentary provide proof that the court has actually authorized that person to act.

Letters of Administration

Letters of Administration are generally issued when a person dies without a will. This means they died “intestate.” Instead of carrying out instructions contained in a will, an administrator manages the estate under New York's intestacy laws. An Administration proceeding is filed in Surrogate’s Court, and the court determines who is entitled to serve. Letters of Administration give a court-appointed administrator authority to collect, manage, and distribute the deceased person’s property. Eligible distributees—New York’s legal term for heirs—generally have priority to serve, although the court may appoint someone else in certain circumstances.

The administrator generally performs many of the same practical duties as an executor, including collecting assets, paying estate obligations, filing required tax documents, and distributing the remaining estate.

Executor vs. Administrator: What’s the Difference?

Both the executor and administrator have a court-appointed fiduciary authority to administer the estate, but the process for obtaining them—and the rules governing the estate—are different.

The important difference is that the administrator does not decide who receives the property. When there is no will, New York law determines the heirs and their respective shares.

The easiest way to understand the distinction is to look at how each person receives authority:

• If there’s a will. The deceased person normally chooses an executor in the will. The court then determines whether the will should be admitted to probate and whether that executor may serve. If approved, the court issues Letters Testamentary.
• If there’s no will. If there’s no will, then no executor is chosen by the deceased person, and someone must petition the court for appointment as administrator. The court follows New York law in determining who has priority to serve and, if appropriate, issues Letters of Administration.

New York law expressly defines an “administrator” as a person to whom Letters of Administration have been issued.

Why Do These Letters Matter?

Until the appropriate letters are issued, family members may discover that they cannot legally handle many estate assets. A bank, brokerage firm, buyer, title company, or other institution may require proof that someone has been formally appointed to represent the estate before it will release information, transfer funds, or recognize that person's signature.

The letters essentially establish the fiduciary's authority to say, “I am legally authorized to act for this estate.” That is particularly important when the estate includes:

• Bank or investment accounts held solely in the deceased person's name
• Real estate that needs to be sold or transferred
• Debts that must be paid or disputed
• Tax returns that must be filed
• Claims belonging to the estate
• Property that must be distributed among several beneficiaries or heirs

New York describes Letters Testamentary and Letters of Administration as the court-issued proof of authority for executors and administrators respectively.