Common Terminology in Estate Administration and the Probate Process

When managing the estate of a loved one or navigating the probate process, you’ll come across a lot of specialized legal and financial terms. While these terms may seem overwhelming at first, understanding them is key to ensuring everything runs smoothly. Whether you're acting as the executor of an estate or simply trying to better understand the process, knowing the terminology can help you make informed decisions.

In this post, we’ll explain some of the most common terms associated with estate management and the probate process, so you can feel more confident as you handle these important tasks.

 1. Probate

Probate is the legal process through which a deceased person's will is validated, debts are settled, and assets are distributed to beneficiaries. It involves filing the will with the court, identifying and appraising assets, paying debts and taxes, and ultimately distributing the estate’s assets according to the deceased’s wishes (or state law, if there is no will).

- Key takeaway: Probate is necessary to ensure that the deceased's wishes are carried out in a legal and organized manner, and that any outstanding debts are properly addressed.

 2. Executor (Personal Representative)

An executor, sometimes referred to as a personal representative in some states, is the person named in the will to carry out the deceased’s wishes. If no will exists, the court will appoint an administrator to handle the estate.

The executor’s duties include:

- Filing the will and petitioning the court for probate

- Managing and inventorying assets

- Paying debts and taxes

- Distributing assets to beneficiaries

- Key takeaway: The executor is legally responsible for overseeing the entire probate process.

 3. Administrator

If the deceased person did not have a valid will, an administrator is appointed by the court to handle the estate in a manner similar to an executor. The administrator follows intestate succession laws, which are state laws that determine how the estate should be distributed when there’s no will.

- Key takeaway: The administrator is essentially the “executor” for estates without a will, but the court appoints them rather than the deceased person.

 4. Intestate

When a person dies intestate, it means they died without a valid will. In such cases, the state’s intestate laws will determine how the deceased’s assets are distributed. Typically, this involves distributing the estate to the deceased’s closest family members (spouse, children, parents, etc.).

- Key takeaway: Intestate succession is the state’s default plan for distributing a deceased person’s assets when there’s no will.

 5. Will

A will is a legal document in which a person specifies their wishes regarding the distribution of their assets after their death. It may also designate an executor, name guardians for minor children, and provide instructions for funeral arrangements. 

- Key takeaway: A will allows a person to have control over how their estate is handled after they pass away, avoiding intestate laws.

 6. Testator

The testator is the person who creates and signs a will. Once the testator passes away, the will is used to guide the probate process and ensure their wishes are carried out.

- Key takeaway: The testator is the person whose estate is being managed.

 7. Letters Testamentary

Letters Testamentary are legal documents issued by the court after probate is opened. These letters officially appoint the executor (personal representative) and give them the authority to manage the deceased’s estate, access financial accounts, and distribute assets.

- Key takeaway: These letters act as the executor’s “authorization” to carry out their duties.

 8. Letters of Administration

If the deceased did not have a will, the court will issue Letters of Administration to appoint the administrator to handle the estate. These letters grant the administrator the legal authority to manage the estate and distribute assets according to state law.

- Key takeaway: Similar to Letters Testamentary, but issued to administrators when there’s no will.

 9. Beneficiary

A beneficiary is an individual or entity (like a charity or trust) that is designated to receive a portion of the deceased’s estate. In the case of a will, the testator specifies who will inherit certain assets. In the case of a trust, beneficiaries receive the assets held in the trust.

- Key takeaway: Beneficiaries are the people or organizations that will benefit from the estate after debts and taxes are paid.

 10. Estate

An estate refers to the total assets and liabilities of a deceased person, including real property, bank accounts, investments, personal property (jewelry, artwork, vehicles), and any debts owed. The estate is what the executor or administrator must manage and distribute during probate.

- Key takeaway: The estate encompasses everything the deceased person owned and owes at the time of their death.

 11. Trust

A trust is a legal arrangement in which a person (the grantor) transfers assets to a trustee, who then manages and distributes those assets according to the terms of the trust. Trusts can be set up during a person’s lifetime (living trust) or created in their will (testamentary trust).

- Key takeaway: Trusts can help avoid probate, as assets held in a trust generally don’t go through the probate process.

 12. Trustee

A trustee is the person or institution responsible for managing the trust and its assets. They are legally obligated to act in the best interests of the trust’s beneficiaries and must follow the trust’s terms. Trustees can be individuals or institutions like banks or trust companies.

- Key takeaway: The trustee has the legal duty to manage the trust’s assets and ensure they are distributed according to the trust's terms.

 13. Probate Court

The probate court is the court responsible for overseeing the probate process. It handles the validation of wills, appoints personal representatives (executors or administrators), and ensures that the estate is settled in compliance with the law.

- Key takeaway: Probate courts ensure that the deceased’s estate is administered properly and in accordance with the law.

 14. Intestate Succession

Intestate succession refers to the laws that dictate how an estate will be distributed if a person dies without a will. These laws prioritize the decedent’s closest family members, such as their spouse and children, but can vary from state to state.

- Key takeaway: If someone dies intestate, the state’s intestate laws decide who inherits their estate, rather than following the decedent's personal wishes.

 15. Estate Taxes

Estate taxes are taxes levied on the value of the deceased person’s estate. In Oregon, estates valued at over $1 million are subject to state estate taxes, and the federal government also taxes estates over a certain threshold. These taxes are paid from the estate before assets are distributed to beneficiaries.

- Key takeaway: Estate taxes may need to be paid before any assets can be distributed to beneficiaries, and the tax rate depends on the value of the estate.

 16. Probate Fees

Probate fees are costs associated with the probate process, including court fees, attorney fees, and executor fees. These fees are paid from the estate and can vary based on the size and complexity of the estate.

- Key takeaway: Probate fees can reduce the amount available for beneficiaries, so understanding and planning for these costs is crucial.

 17. Asset Inventory

An asset inventory is a comprehensive list of all the deceased’s assets. The executor or administrator is responsible for gathering and valuing these assets as part of the probate process. This includes real property, bank accounts, investments, personal items, and more.

- Key takeaway: Creating a detailed inventory is one of the first steps in managing the estate and is essential for ensuring that all assets are accounted for.

 18. Claims Against the Estate

Claims against the estate refer to any debts or obligations that need to be paid before assets can be distributed to beneficiaries. These may include outstanding bills, loans, mortgages, taxes, or any other liabilities the deceased had.

- Key takeaway: Debts must be settled before the remaining estate can be distributed to beneficiaries.

 Final Thoughts

The probate process and estate administration come with a lot of specialized terminology, but understanding these terms is crucial for handling your loved one’s estate efficiently. Whether you’re serving as the executor, administrator, or just learning about the process, knowing these terms can help you navigate the legal landscape with more confidence. 

If you ever feel uncertain, it’s always a good idea to consult with one of our Certified Probate Experts to guide you through any complicated aspects of the estate.