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 Arkansas, a letter of testamentary is issued by a probate court to authorize an executor to manage and distribute a deceased person's estate according to their will. This document is essential for executors to conduct financial transactions on behalf of the estate, such as transferring assets and paying debts. If a person dies intestate (without a valid will), the court appoints an administrator and issues letters of administration, granting similar powers to manage the estate in line with Arkansas's intestate succession laws. The process of estate administration may be supervised or unsupervised by the court, and the administrator may be required to post a bond, depending on the circumstances and the court's discretion. Arkansas statutes outline the specific procedures and requirements for obtaining these letters and administering an estate, whether testate or intestate.