Estate administration is the legal process by which property interests are passed from a decedent to his/her beneficiaries or heirs. This is sometimes referred to as the “probate” process.

An “estate” is composed of any and all property interests owned by the decedent at death. Property interests can include tangible property — property which you can touch or hold — such as real estate or personal effects and household goods. Property can also be intangible. Intangible property is an interest that you really can’t touch or feel — the property is represented by a physical item — such as a stock certificate.

In this process an individual is appointed by a court to follow the directives of the decedent’s Last Will and Testament. In the event there is no will, the individual is charged with distributing the decedent’s property according to statute. This is called the law of intestate succession.

Trust administration is similar to estate administration. The key distinction is that, in a trust administration, a trust — not a Last Will and Testament — governs the administration and distribution of the property. The person charged with carrying out the terms of the trust is called the trustee. This person is not appointed by a court — this person is appointed by the person making the trust. Typically this is done through a Revocable Living Trust. This mechanism avoids the probate process.

Common task of both trust and estate administration includes gathering the decedent’s property, determining the value of that property and paying inheritance tax. All of this must be done before the next generation can receive their inheritance.