When a family member or loved one passes away in Louisiana, their estate will go through the succession process.
The succession process sometimes involves the appointing of an administrator. This is an individual responsible for managing the succession process, which includes identifying assets and creditor claims, paying debts and distributing the remaining assets.
There are three different types of successions in Louisiana
The first is a succession without administration.
A succession without administration is appropriate in a situation where all heirs agree on how assets should be distributed. In this case, the heirs can take possession of assets without the necessity of appointing an administrator and going through the succession process.
The second is a succession with full administration. This succession occurs when heirs do not agree on the administration of the estate. A full succession usually involves an administrator.
The third is independent administration. This is somewhat like a succession with full administration because it involves the identification of assets and creditors, paying debts and distribution of assets to heirs.
However, the main difference between independent administration and succession with full administration is that independent administration does not require court approval before taking each step.
Steps in the independent administration process
Your loved one may have appointed an administrator in their will. If not, independent administration involves the appointment of an administrator by the court. Once the administrator is appointed, the court issues letters of independent executorship or letters of independent administration.
The independent administrator can then begin the succession process and take each step without court approval.
There are benefits to independent administration. Since there is less court involvement, the process generally goes quicker, resulting in heirs receiving assets sooner. Independent administration can also recue the estate’s succession costs.
You may not always know if independent administration is right for your situation. Sometimes your loved one may have specified exactly what type of succession process they wanted followed in their will.
If they did not, you should choose the option that you believe is in the best interests of all heirs and would respect your loved one’s wishes. Generally, when all heirs agree to independent administration, a court cannot prevent it.
Can I change to independent administration?
Succession may start as a succession with full administration and be changed to independent administration if all heirs agree. This sometimes happens if the full administration process becomes lengthy or cumbersome due to waiting for court approval.
One of the best ways to reduce the chance of conflicts in the succession process is to create an estate plan that specifies the type of succession you want after you pass away. If you are helping a loved one, such as an elderly parent, to create an estate plan, you can encourage them to consider the type of succession they believe is best.
Although succession without administration or independent administration is meant for situations with little to no conflicts, unexpected issues or problems can arise throughout the administration process. Having guidance when this happens can help you resolve the problems efficiently and keep relationships between heirs intact.