What is required in a Supervised Administration?

In a Supervised Administration, court approval is indeed essential before the disposition of any estate property. This process ensures that all actions taken regarding the estate are monitored and validated by the court, providing a layer of protection for all parties involved, including creditors and heirs. By requiring court approval for transactions involving estate property, it helps prevent possible mismanagement or impropriety, ensuring that distributions to beneficiaries and the handling of debts are carried out appropriately under the supervision of the judicial system.

While the other options touch on aspects of estate management, they don't align with the specific requirements of Supervised Administration. For example, while debts need to be addressed, it's not a universal rule that they must be paid before disbursing assets in this context, as various situations may allow assets to be disbursed while still managing outstanding debts. Similarly, there is no requirement for the estate to be sold at public auction, and a Supervised Administration entails a formal probate process, contrary to the notion that no formal process is needed.