When a resident of Louisiana dies with assets in their name, there is likely a Succession necessary. Financial accounts are likely frozen, real estate cannot be sold or transferred, and other estate settlement issues need to be addressed.
The simplest of Successions are handled without an administration. Let's say Husband died and the only asset in his name is the home he owns with Wife. Wife has no interest in an immediate sale of the home. This Succession, perhaps, can be completed without an administration. The attorney prepares the pleadings petitioning the judge to order that the home be transferred to Wife.
In many cases, however, an Administration is necessary because things need to be handled prior to the conclusion of the Succession. When an administration occurs, a judge either confirms the executor that was named in the will, or the judge appoints an Administrator of a Succession when no Will existed. The following are four reasons why an administration may be necessary as part of completing a Louisiana Succession:
(1) Need Access To Funds. When someone dies, often their accounts are frozen. When an executor is confirmed, or an administrator is appointed, on the front end of the Succession, that person can establish an estate account and move funds from frozen accounts into the estate account. This is often a necessary step if bills need to be paid, or the Succession incurs expenses, or mortgages or car notes must be paid, while the Succession is taking place.
(2) Best For One Person To Handle Financial Issues. Without an administration, it can be cumbersome for the family to wait for months or longer to share in the inheritance, only to be asked to give some of their inheritance back to cover Succession debts or expenses. It is often easier for an executor or administrator to be confirmed or appointed, and then that person can take care of all Succession related debts, expenses, or other matters, and then disburse remaining funds or assets to the several heirs at the conclusion of the Succession.
(3) Funds Payable To Estate. Sometimes a deceased person is entitled to funds. Perhaps the deceased is entitled to a tax refund from the IRS or the state. Or perhaps the deceased is entitled to a refund for funds advanced to a nursing home or assisted living facility. The funds will be remitted to the deceased person's estate. When a check is payable to estate, no individual can deposit that check. It must be deposited into an Estate account. The only way to create an estate account is to administer a Succession, have an executor confirmed or administrator appointed, and then have that person open an estate account.
(4) Succession Assets Need To Be Sold. It is not uncommon for a Succession to need to sell a vehicle of the deceased, a piece of real estate, an investment, or some other asset in the name of the deceased. Sure, you could wait months or years until the Succession is complete, and then transfer the vehicle to the five heirs, and then have the five heirs each individually do all of the paperwork to sell the vehicle. But it may be easier, on the front end, to have an executor confirmed or an administrator appointed, and then have that one person transact the Succession asset by himself or herself, and simply deposit the sale proceeds in the estate account for later distribution to the heirs.
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