Probate Terms Explained

Executor vs. administrator vs. personal representative

The personal representative is the umbrella term for the person the court empowers to run an estate. An executor is the personal representative named in a valid will. An administrator is the personal representative appointed by the court when there is no will, or when the named executor cannot serve. Same duties, different titles, same fiduciary obligations.

Letters testamentary vs. letters of administration

Letters are the court-issued documents that prove who has authority over the estate. Letters testamentary go to an executor appointed under a will. Letters of administration go to an administrator appointed without a will. Banks, title companies, and the county recorder ask to see them.

Probate referee

A probate referee is a court-appointed appraiser who values the assets of a California estate for the inventory and appraisal the court files. The referee’s valuations help set the estate’s gross value, which drives which probate routes may be available.

Inventory and appraisal

The inventory and appraisal is the court-filed document that lists the estate’s assets and their values. In California it must be filed within four months of the personal representative’s appointment (Probate Code 8800), and a probate referee typically supplies the values.

Step-up in basis

Step-up in basis refers to Internal Revenue Code Section 1014: inherited property generally gets a new cost basis equal to its fair market value on the date of death, which can reduce or eliminate capital gain on a later sale near that value. Confirm the numbers for a specific estate with a tax professional.

Court confirmation of sale

Court confirmation of sale is the hearing at which a judge approves an estate’s sale of real property, reviewing the offer, the appraisal, and the paperwork. Qualified buyers may place higher bids at the hearing. Sales conducted under full IAEA authority generally do not require confirmation.

Independent Administration of Estates Act (IAEA)

The Independent Administration of Estates Act lets a personal representative handle many estate steps, including some sales, without going back to court for individual approval. It grants either full or limited authority; only full authority allows sales without court confirmation. It does not avoid probate: the estate still runs, just with fewer hearings.

Probate estate and gross value

The probate estate is the property the decedent owned that must pass through probate. It generally excludes property held in joint tenancy, in a funded living trust, or by beneficiary designation. Gross value is the value of the estate before debts and expenses are subtracted; California’s small-estate thresholds apply to gross value.

Small estate affidavit

A small estate affidavit is a sworn document that lets a successor collect personal property of a qualifying estate without court probate, when the value falls at or below the current threshold and any waiting period has passed. It applies to personal property only and does not by itself transfer real estate.

Petition to determine succession to real property

A petition to determine succession to real property is a court petition that can transfer a deceased person’s California primary residence to its successors without full probate, when the property qualifies by type and value. It runs under Probate Code sections 13150 through 13157 and has its own waiting period and limits.

Beneficiary designation

A beneficiary designation is a name on a financial account, life insurance policy, retirement plan, or transfer-on-death instrument that receives that asset directly at death. Because the asset passes by the designation, it generally bypasses probate.

Joint tenancy

Joint tenancy is a way of holding title with a right of survivorship: when one owner dies, the surviving joint tenants automatically take the deceased owner’s share, typically outside probate. The survivor should confirm the deed’s actual wording, because joint tenancy and tenants in common are different arrangements.

Living trust (funded vs. unfunded)

A living trust is a trust created during life, usually revocable, into which the grantor transfers ownership of assets. Funded means the assets, including the house, have actually been retitled into the trust’s name. Unfunded means the trust exists but property was never transferred into it, so that property may still go through probate.

These definitions are general information, not legal or tax advice. Terms and thresholds change as the law changes, so confirm anything that matters for your family with a qualified California probate attorney and your tax professional.