Which statement correctly describes when extrajudicial settlement of an estate is permitted?

Which statement correctly describes when extrajudicial settlement of an estate is permitted?

• A. The decedent left no will.
• B. All debts have been paid.
• C. The decedent left no will and all debts have been paid.
• D. The decedent left a will that has been probated.

Answer: (C)

Extrajudicial settlement is a way to distribute a decedent’s estate among heirs without going through the probate process, but it can occur only under two key conditions: there is no will, and all debts and taxes have been paid or provided for. When the decedent died intestate (no will) and the estate is free of unpaid liabilities, the heirs can divide the property by a public instrument and fulfill publication and filing requirements, without court involvement. That’s why the statement that the decedent left no will and all debts have been paid describes the proper setup for an extrajudicial settlement. If there’s a will, the distribution typically proceeds through probate, not via extrajudicial settlement; and merely having no will or merely having debts paid without the other condition does not by itself authorize an extrajudicial settlement. If there is a probated will, extrajudicial settlement is not the usual route, reinforcing why the combined condition in the correct choice is essential.

Extrajudicial settlement is a way to distribute a decedent’s estate among heirs without going through the probate process, but it can occur only under two key conditions: there is no will, and all debts and taxes have been paid or provided for. When the decedent died intestate (no will) and the estate is free of unpaid liabilities, the heirs can divide the property by a public instrument and fulfill publication and filing requirements, without court involvement.

That’s why the statement that the decedent left no will and all debts have been paid describes the proper setup for an extrajudicial settlement. If there’s a will, the distribution typically proceeds through probate, not via extrajudicial settlement; and merely having no will or merely having debts paid without the other condition does not by itself authorize an extrajudicial settlement. If there is a probated will, extrajudicial settlement is not the usual route, reinforcing why the combined condition in the correct choice is essential.