Sometimes, a loved one passes away with their assets tied up with banks and other agencies. However, upon attempting to recover these assets, the banks may ask you for letters of administration. At this point, many people ask themselves exactly what are letters of administration? However, they should also ask, do I really need letters of administration in California probate?
Often, clients contact our office because the bank has requested letters of administration (letters) before releasing a decedent’s funds. However, many people do not realize that they may not actually need letters. Instead, they may be able to use another type of proceeding or legal documentation. In fact, getting letters of administration for a very small estate is usually completely unnecessary.
Alternatives to Probate
First, in order to recognize when you do and don’t require letters, you must understand the California probate process. Luckily, California is one of many states that offers a variety of alternatives to settle an estate. For example, large estates over $166,250 often require a full probate to transfer assets to the decedent’s beneficiaries. On the other hand, there are alternative proceedings for smaller estates with personal and/or real property valued under $166,250. More specifically, these alternative proceedings are called “small estate administration”.
California courts have rules to determine if an estate is eligible for small estate administration or a small estate affidavit. These rules depend on the type of assets the decedent owned and whether they exceed a specified threshold value. For example, California’s small estate administration requires that a decedent’s estate not exceed $166,250 in value and that more than 40 days have passed since the date of death.
How Probate Alternatives Affect Letters of Administration
Often, bank employees do not know the legal requirements to settle estates. Unfortunately, banks provide their employees with manuals, policies, and guidelines with a “one size fits all” mentality. Therefore, bank employees are not trained in the various nuances of California probate law. As a result, when they access their reference materials to determine how to deal with bank accounts with a deceased owner, they simply find instructions to ask for letters of administration or a court order. However, in reality, letters of administration are not always necessary or legally required to settle a decedent’s estate.
Therefore, everyone should educate themselves on these two important facts about settling an estate in California:
- The court only issues letters of administration in California’s full probate administration process.
- In many situations, an alternative small estate probate proceeding or non-court affidavit is the proper procedure for distributing bank funds.
What to Say When the Bank Asks For Letters
If the bank is requiring letters of administration to release funds, you need to assess whether this, in fact, is the only way to obtain them. To do this, consider the total value of the estate and what options California law offers to settle an estate of this value. Do NOT assume the bank employee understands California probate law. Unfortunately, you may need to educate the bank on your rights to settle the estate.
How to Get Letters of Administration and Other Legal Documents
That said, if you really do need letters of administration, contact A People’s Choice for low-cost, professional assistance. Alternatively, if you need help completing the necessary documentation for one of the alternative small estate administration proceedings, A People’s Choice can also help! Ultimately, if you are unsure what your options are, we will be happy to direct you to legal resources that will answer your questions. Call us at 800-747-2780 today to learn more.
My sister lived and died in another country. She had an account with Bank of America with a very small balance which I’ve already claimed via the small estate affidavit. She has no assets in the United States, but I do need the bank statements for the past 4 years. The bank is asking for a court order which seems ridiculous since I am not planning to open Probate. Is there another legal way to get these statements from the bank?
Hello Marcos, usually probate is the only way to get such a court order, but I would seek legal advice. You can call the office on 800-747-2780 if you need help with the paperwork.
My friend was appointed Administrator of her mother’s estate after she passed away without a will. My friend went to Wells Fargo with the Letter of Administration from the court & death cert to open an estate checking and gain access to her mom’s existing bank accounts there. The bank refused to help her and said she needs the court order and that it was a California law that every bank will require. The bank employee put the “Legal Dept” on speaker phone, so my friend heard them say she needed a court order. The attorney knew she was taking the letter to the bank for that purpose and did not say she needed the full court order. We googled it and it seems to say you need the Letter to access financial accounts. So is Wells Fargo just making their own rules and basically being a bully? Wells Fargo does hold the mortgage on two homes and we suspect they want the court order to be sure the debts to them are listed. Which they will be once the Inventory & Appraisal phase of this is done.
If she was appointed an administrator of an estate she should have both letters and a court order.
The bank says they require a letter of administration. I understand that you cannot get this unless you open probate. My father had a TOD on his home, so we are now the legal owners of the house. The home is in the process of being sold. I have a notarized will naming me as the executor but the bank refuses to take that as proof. I don’t want to go to court and open probate just to get the letter of administration for the bank. What do I do now?
If the property transferred by way of a TOD I doubt you will be able to close on a sale. Title companies typically refuse to provide title insurance for 3 years following TOD transfers.
The court is not accepting calls so how do I proceed with closing out my Father’s passing? I’m in Las Vegas but my sister lives in Vallejo.
if you need help completing a probate matter I would recommend that you give our office a call at 800-747-2780
Have a situation where CA resident dies in CA but his employers credit union is in MD. The CU mgr states that a court letter of administration or probate court letter stamped us required in MD to get the $10k from the savings acct.
Are there different laws in what is required by each state under Small Estate. Or is this just another case where a bank employee doesn’t understand?
It is hard to say. Every state has different laws that control the probate process and what needs to be done. Some states do require Letters be issued by the Domicile state of the decedent, even in small estate matters.
How much do I need to pay to get a Letter from Administration?
“Letters” are just part office full probate process. It’s not the final end to the means.. Give us a call at 805-648-5540.
If a deceased left a Trust instead of a Will, do I still need probate? State is CA, estate value is less than $75,000. Thank you
If the assets are all in the name of the trust you probably just need to administer the trust with the proper paperwork. We can prepare the required paperwork if you need help.
What do you recommend when the bank is insistent on the letter of admin, despite that it is clear that the affidavit of small estate should suffice? We have checks made out to “the estate of…” and want to open an estate act to deposit. They will not allow the act without the letter. Is there a certain person to contact at a bank? We have been told by the teller and manager and both said they consulted with their “legal dept”? Thanks
Our package includes added info and statutory info that helps the banking institution understand this process. You can always hire an attorney to write a threatening letter as well.
My sister was able to get and sign checks of $5,000 to her shelf / & $700 pluse$300 more that she says was for a lawyer so this all happened the day after my mother passed away is this legal
Your sister may have been a signer on tour mother’s bank account. Obviously if you think she has done something illegally, you should talk to an attorney to get legal advice.