The Independent Administration of Estates Act

Once an attorney starts to fill out a Petition for Probate, one of the first questions he or she must answer is whether to ask for authority to administer the estate under the Independent Administration of Estates Act (“IAEA”). IAEA is the shorthand for the act, and any reputable trust and estates attorney will understand what is meant by “IAEA”. Most attorneys have no idea what IAEA means.

The IAEA is a part of the California Probate Code. It can be found at Probate Code §§ 10400 to 10592. It is legislation intended to smooth the job of the executor or administrator. Authority under the IAEA allows the personal representative to take certain actions without obtaining prior court approval. Any time the personal representative has to go to the court for authority to take some action, it costs time and money, and delays distribution.

The attorney will first examine the decedent’s will, if there is one. The will often contains explicit language authorizing the executor to obtain IAEA powers. Sometimes, a will expressly denies the personal representative IAEA powers. If there is no will, or the will is silent on the topic, the attorney can still check the box for IAEA powers, and the court will review the request.

There are two levels of IAEA powers, “limited” and “full”. Full authority gives the personal representative the power to buy, sell, or borrow against real property without court approval. Limited authority does not give authority over real property; a personal representative with only limited powers will have to request court approval before moving forward with a purchase, sale, or mortgage.

Estate beneficiaries might object to the request for IAEA authority if they believe the personal representative will have conflicts of interest or should be watched more closely by the court.

Why would anyone ask for limited authority when they could have full authority? Because that person may have trouble obtaining a sufficient bond. We’ll discuss bond in a later post, but often the personal representative has to obtain a bond to cover the value of the liquid assets of the estate (cash, securities, etc.) With full IAEA powers, the court will consider the value of illiquid ("solid") assets, like real property, in determining the bond. Including the value of the real property can greatly increase the size of the bond required, so sometimes it makes sense to stick with limited IAEA powers and keep the bond value lower.

The California Petition for Probate – A Primer

One of the first documents that must be prepared and filed in any probate in California is the Petition for Probate. The Judicial Council of California has prepared a mandatory form for the Petition for Probate: DE-111.

This petition is the formal request for the court to open a probate for a particular person. This is a complicated petition that even attorneys often fill out wrong. It’s best to retain an experienced trust and probate attorney to take care of these forms for you.

The form requests a great deal of very specific information regarding the decedent: name or names the person went by; date of death; address at time of death; names of close relatives. The form also asks more complicated questions: about the decedent’s estate planning, or lack thereof; about whether a bond is required; and for the basis for priority for nomination of the personal representative. If any part of the petition is not clear, or not complete, the petition may be delayed or dismissed by the court clerks.

The key request of the petition for probate is the request for the court to appoint a particular person as the personal representative of the estate. “Personal Representative” is an umbrella term for the person who represents the estate. If the decedent had a will that nominated the personal representative, that person will be called the “Executor”. If not, then that person will be called the “Administrator”. The powers and responsibilities of the executor and administrator are the same.

Our firm handles probate proceedings all over the Bay Area: San Francisco, Alameda, Marin, San Mateo, and further afield. As Bay Area probate attorneys, we know the ins and outs of the different probate departments and their particular preferences and local forms.

The Probate Process in California – A Summary

The probate process in California can be daunting to those already dealing with the loss of a friend or family member. But with the proper guidance, any intelligent and responsible person can navigate the court system and reach the ultimate goal: the safe and efficient transfer of a decedent’s property to those entitled to it.

The process starts with getting a general sense of the property owned by the decedent. Did he or she have a house or other interest in real property? Bank and investment accounts? Life insurance policies? Usually a quick search of their financial records will turn up the evidence needed.

The quick search may also turn up a copy of the decedent’s Last Will or Revocable Trust. If they have a trust, their property might not pass through probate; otherwise, a court process is likely necessary.

With some sense of the decedent’s property and their prior estate planning, you’re ready to contact a reputable “estate” or “probate” attorney. Avoid attorneys without a clear focus in this area of law. A generalist is not the best choice here.

Your attorney will help you determine the best options to proceed with the property transfer process. Does an executor or administrator need to be appointed? What county will the probate proceeding take place in? Who has to be notified? All of these questions need to be answered before the next steps can be taken.