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 Maryland, a letter of testamentary is a legal document issued by the Orphans' Court, which is the state's probate court. This document grants the executor named in a deceased person's will the authority to administer the decedent's estate. The executor's duties include collecting debts owed to the estate, paying the estate's debts, and distributing the remaining assets according to the will. If a person dies intestate (without a will) or the will is deemed invalid, the court will appoint an administrator to manage the estate. The administrator is tasked with similar responsibilities as an executor but must distribute the assets according to Maryland's intestate succession laws. The Orphans' Court may require the administrator to post a bond as a security for the estate's assets. The administration of the estate by the executor or administrator may be supervised by the court, and the need for a bond and level of supervision can vary depending on the specifics of the estate and the court's discretion.