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 Nebraska, 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. When a person dies with a valid will, the named executor must apply to the probate court for the letter of testamentary to gain the legal authority to act on behalf of the estate. This includes settling debts, collecting amounts owed to the estate, and distributing assets to the beneficiaries as specified in the will. If a person dies intestate (without a will) or the will is deemed invalid, the court will appoint an administrator and issue letters of administration, which serve a similar function to the letter of testamentary but are governed by the state's intestate succession laws. In Nebraska, the administration of an estate can be either supervised or unsupervised by the probate court, and the administrator may be required to post a bond, depending on the court's discretion and the specifics of the estate. The process is outlined in the Nebraska Revised Statutes, and individuals seeking to act as executors or administrators should consult with an attorney to navigate the probate process and ensure compliance with state laws.