Limited Authority and Full Authority Explained
What Each Allows, What Each Restricts, and Why the Difference Matters
Limited Authority and Full Authority are not interchangeable labels. They represent two distinct levels of court permission, each with specific consequences.
Limited Authority allows a Personal Representative to act, but only with continued court oversight. This typically includes mandatory court confirmation for real estate sales, extended timelines, and additional buyer uncertainty.
Full Authority allows broader discretion once statutory requirements are satisfied. Sales may proceed without confirmation, pricing stabilizes, and transactions more closely resemble non-probate sales.
Limited Authority exists for protection, not punishment. It is commonly imposed when notice requirements are incomplete, beneficiaries have objections, or documentation requires closer review.
Full Authority does not eliminate fiduciary responsibility. It increases the oversight, shifting from court supervision to fiduciary compliance.
Problems arise when estates behave as if Full Authority exists while Limited Authority is still in place. Buyers hesitate, escrow slows, and courts reject actions taken prematurely.
This distinction matters because authority affects pricing, buyer confidence, timing, and exposure. Treating the two as equivalent is one of the most common probate mistakes.
Probate authority rules evolve. Advice based on past experiences may no longer reflect current court expectations, disclosure standards, or buyer behavior.
Clarity here is not optional. It determines outcomes.