A letter of testamentary—also known as letters testamentary—is a written order from a probate court approving the appointment of an executor under a will and authorizing the executor to administer the will and the decedent’s estate—including collecting amounts due to the estate, paying any outstanding debts of the estate, and distributing the assets of the estate in accordance with the provisions of the will.

Banks, brokerages, and mortgage and title companies rely on the court-ordered authority of the executor—as demonstrated by a letter of testamentary—when transferring ownership and control of assets in the testator’s estate.

When a deceased person (decedent) dies without a will (intestate) or the decedent’s will is found to be invalid by the probate court, the court may appoint an administrator to manage the estate, assets, and liabilities of the decedent. The administrator must be qualified or approved by the court and in some instances may be required to post a bond to secure the assets of the estate.

Upon appointment of an administrator by the probate court the court may issue letters of administration that authorize the administrator to administer the decedent’s estate by collecting amounts due to the estate, paying any outstanding debts of the estate, and distributing the assets of the estate in accordance with the state’s intestate succession laws.

Laws and procedures vary from state to state but an administrator—and the administrator’s administration of the estate—may be supervised or unsupervised by the probate court and may be with or without a bond required from the administrator.

In Iowa, a letter of testamentary is a legal document issued by a probate court that authorizes an executor to manage and distribute a deceased person's estate according to the terms of the will. This document is necessary for the executor to perform duties such as collecting debts owed to the estate, paying the estate's debts, and distributing assets to the beneficiaries. If a person dies intestate (without a valid will) or the will is deemed invalid, the court will appoint an administrator to handle the estate. The administrator is typically required to be qualified and may need to post a bond. The court may issue letters of administration, which grant the administrator similar powers to those of an executor, to manage the estate in accordance with Iowa's intestate succession laws. The administration of the estate by an administrator may be subject to varying degrees of court supervision and may or may not require a bond, depending on the specific circumstances and the discretion of the probate court.