Legal Definitions - full value

The term fully administered refers to a formal declaration made by the individual responsible for managing a deceased person's estate, known as the executor (if there is a will) or administrator (if there is no will).

When an estate is declared fully administered, it means that the executor or administrator asserts to the court that they have:

• Collected all of the deceased person's assets.
• Paid all legitimate debts, taxes, and expenses of the estate.
• Distributed any remaining assets to the rightful beneficiaries or heirs according to the will or applicable law.

Essentially, this declaration signifies that the estate no longer holds any assets from which a new or previously unknown claim could be satisfied, and the executor or administrator has completed their duties.

Here are some examples to illustrate this concept:

• Example 1: Closing a straightforward estate
  After Mr. Henderson passed away, his daughter, acting as the executor, meticulously paid off his mortgage, settled his credit card debts, filed his final tax returns, and distributed the remaining funds from his bank accounts and the sale of his car to the beneficiaries named in his will. Once all these steps were completed and documented, she filed a formal plea with the probate court stating that the estate was fully administered. This declaration allowed the court to formally close the estate, confirming that all assets had been legally handled and distributed.

• Example 2: Responding to a late claim
  The executor of Ms. Chen's estate had diligently managed all affairs, paid all known creditors, and distributed the inheritance to her children. Six months after the estate was formally closed by the court, a distant relative emerged with a handwritten note claiming Ms. Chen owed them a significant sum from a decade ago. The executor responded to this new claim by asserting that the estate was already fully administered. This meant there were no longer any assets within the estate to satisfy this late claim, as all funds had been legally disbursed to the beneficiaries.

• Example 3: Protecting the administrator from future liability
  When Mr. Davies died without a will, his brother was appointed as the administrator of his estate. The brother carefully identified all assets, paid off all known debts, and distributed the remaining funds to Mr. Davies' legal heirs. To ensure he wouldn't be personally held responsible if an unknown creditor appeared years later, the brother formally declared to the court that the estate was fully administered. This legal step provided him with protection, confirming that he had fulfilled his obligations and the estate no longer held assets to cover any new, unforeseen liabilities.