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 North Carolina, a letter of testamentary is issued by the probate court when an individual has passed away leaving a valid will and names an executor to manage their estate. This document grants the executor legal authority to act on behalf of the deceased's estate, allowing them to collect debts owed to the estate, pay outstanding debts, and distribute assets according to the will's instructions. If a person dies intestate (without a will) or the will is deemed invalid, the court will appoint an administrator to handle the estate. The administrator is often required to post a bond as a security measure for the estate's assets. The court may issue letters of administration to the appointed administrator, which authorizes them to manage the estate's affairs, including settling debts and distributing assets in line with North Carolina's intestate succession laws. The level of court supervision over an administrator can vary, and it may be either supervised or unsupervised, with the requirement of a bond being at the court's discretion.