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 Alabama, a letter of testamentary is issued by a probate court when an individual has passed away leaving a valid will and appoints an executor to manage their estate. This document grants the executor the authority to act on behalf of the deceased's estate, including the collection of debts owed to the estate, payment of the estate's debts, and distribution of the remaining assets according to the will. If a person dies intestate (without a will) or the will is deemed invalid, the court may appoint an administrator to handle the estate. The administrator is tasked with similar responsibilities as an executor but must operate according to Alabama's intestate succession laws. The probate court may require the administrator to be bonded, which serves as a financial guarantee for the proper performance of their duties. The administration of the estate by the administrator may be subject to varying degrees of court supervision, depending on the specifics of the case and state law. It is important for executors and administrators in Alabama to understand their legal obligations and to comply with the probate court's requirements to ensure the estate is managed and distributed correctly.