What’s the difference between estate administration and probate in California?

Our California Estate Planning Lawyers Explain How to Differentiate Between “Probate” and “Estate Administration”

In California, the management and distribution of a deceased person’s estate most often takes the form of estate administration. This process is typically overseen by a county probate court and is a labor-intensive process that can cost executors time and money.

You don’t have to navigate probate, estate administration, or trust management alone. The Law Firm of Kavesh, Minor & Otis, Inc., has spent decades helping Los Angeles and Orange County families cement their legacies and protect their inheritances. Read on to learn more about the difference between estate administration and probate, or contact us today to schedule your initial consultation.

Probate and Estate Administration in California

The 3 Main Modes of Succession

In California, a combination of state law and legal theory dictates how a deceased person’s possessions should be distributed upon their death. The process of redistribution of estate assets is sometimes termed “succession.”

Succession usually takes the form of:

Probate. Probate is a court-monitored process of estate administration. The court’s level of involvement in any case is dependent on many different factors. In general, the court’s role in probate is that of a guardian. It ensures the integrity of the estate, and it protects the interests of heirs and creditors alike.

Estate administration. Estate administration is the physical and financial resolution of an estate. During estate administration, a deceased person’s possessions are inventoried, their outstanding debts are paid, and their assets are redistributed among their heirs.

Trust administration. Trust administration is a comparatively private process that doesn’t usually involve filing petitions or appearing in court.

Of these three modes of succession, probate and estate administration are the most inseparable.

Not only does probate often necessitate estate administration, but administration cannot always be accomplished without probate.

The Duty of the Estate Executor

The estate’s executor, sometimes termed the “personal representative,” is the individual responsible for initiating probate and overseeing the administration of the estate.

The duties of an executor typically include all of the following:

Locating and protecting the decedent’s will
Opening probate and sending notice to heirs and creditors
Locating and cataloging the deceased person’s properties
Assessing creditor claims and paying valid debts
Distributing inheritances

The Role of the Probate Court

California’s probate courts have jurisdiction over cases involving people who lack the capacity to represent their own interests, including children, incapacitated adults, and the dead.

During the probate of an estate, the courts are responsible for:

Ensuring the validity of the will
Protecting the interests of estate beneficiaries and estate creditors
Providing legal authority for the transfer of a deceased person’s property

If a creditor or another heir challenges the estate—or contests the terms of the deceased person’s estate plan—then the probate court will also serve as the venue for litigation.

An Overview of the Estate Administration Process

Probate and estate administration usually occur at the same time.

In some cases, estate administration can take place without undergoing every step in the probate process. This may happen if administration is only necessary for lower-value assets, or if probate has already been opened in another state.

If the estate is not protected by a trust and does not qualify for simplified probate procedures, then administration will typically involve the following steps:

Identifying the Executor

Executors are usually named in the decedent’s last will and testament, but the court may appoint a representative if the intended nominee declines or if there isn't a valid estate plan.

Petitioning the Court

If the executor agrees to serve in their capacity as personal representative, then they must file the initial petition to open probate. After this petition has been filed, the executor must:

Present a copy of the deceased person’s original will for validation
Send notices of probate proceedings to the decedent’s named heirs and beneficiaries
Send notices of probate proceedings to any “interested parties,” including immediate relatives not named in the will and the estate’s potential creditors

Marshaling and Inventorying Estate Assets

The marshaling and managing of assets is often the single most laborious component of the estate administration process.

During this step, the executor must make a full accounting of any and all assets that could be subject to probate. These could include:

Motor vehicles
Kitchen appliances
Furniture
Electronics and electronic equipment
Digital assets, like cryptocurrency or social media accounts
Artwork, or other collections
Certain real properties

The marshaling and inventorying of estate assets is time-consuming for several reasons.

Aside from the need to catalog many different items of many different types, executors have a legal duty to locate assets that may have been misplaced or lost. In other words, personal representatives may have to look through emails, bank statements, and other records to ascertain whether the decedent owned possessions that they forgot to list in their estate plan.

Paying the Estate’s Debts

If the deceased person had any outstanding debt, then their creditors may be entitled to place claims against the decedent’s estate. The executor is responsible for:

Notifying creditors of probate
Assessing creditor claims
Determining if creditor claims are valid
Defending the estate from invalid claims

Estates of any size could be subject to creditor claims, but larger estates may be more vulnerable to lender predation. These lenders may try to collect past the statute of limitations or demand assets that are legally off-limits.

Ensuring the Estate’s Integrity

Emotions can run high during estate administration, especially when executors, heirs, and creditors don’t see eye-to-eye.

Although most disputes can be resolved through a combination of compassion, cooperation, and compromise, estate-related disputes can—and often do—escalate to legal action. And it’s the executor’s job to ensure that these disputes pose as little risk as possible to the estate’s integrity.

If an executor mismanages estate assets or fails to mount a reasonable defense against a disinherited heir or disgruntled creditor, the executor could be held personally liable for a breach of fiduciary duty.

Distributing Inheritances

The distribution of inheritances is the step in the estate administration process that gets the most attention, but it comes at the end and can take months of hard work to reach.

Do You Need To Speak With A Trust & Estate Administration Attorney?

If you need to speak with an experienced California trust and estate administration lawyer please contact us online or call us directly at 800.756.5596 to discuss scheduling a free appointment. Please note that our firm can only meet with the Successor Trustee or Executor of a decedent’s CA trust or will. Our firm does not meet with beneficiaries. Additionally, we do not contest or litigate any trusts or wills. Our trust and administration law firm proudly serves clients throughout California from our main office in Torrance, as well as those in Redondo Beach, Manhattan Beach, Hermosa Beach, Segundo, San Pedro, and Rancho Palos Verdes.

When You Want the Very Best for Your Loved Ones, Choose Us.

Experience and Expertise. Estate planning and post-death administration are all we do. Our attorneys have over 70 years of combined expertise in the field, and three of our attorneys have passed an additional Bar examination and peer review process to become State Bar Certified Specialists in Estate Planning, Trust and Probate Law. Two of our attorneys also have Master’s Degrees in Tax Law, giving us unique insight into how estate tax and income tax will affect your family’s inheritance.

Customization and Attention to Detail. Before we create or update your estate plan, we get to know you, your goals, and what matters to you most. We take the time to listen to your concerns and attend to each of your unique needs and desires as if they were our own. When we complete your plan, we perform a detailed quality control process to help ensure your objectives are met. We also provide you with a personalized Owner’s Manual containing all of your important documents, and your Successor Trustee with a Manual containing helpful, plain-English checklists and easy-to-follow procedures.

Lifetime Relationship. All of our estate plans include a free ongoing service package. We take phone calls any time you have questions, perform free estate planning checkups every three years, and keep you abreast of changes in the law and planning strategies with our complimentary newsletters and educational seminars. And, when the time comes, we will be there to help your trustee and loved ones.