When someone passes away and has written a last will and testament, their estate executor will distribute the deceased person’s assets to their beneficiaries. An executor has many responsibilities and must follow state laws. These responsibilities and other factors can affect the estate distribution timeline and determine how long it takes for the executor to pay the beneficiaries. Understanding these factors can help beneficiaries determine whether the executor is acting in a timely manner.

What tasks must an executor complete before paying the beneficiaries?

In addition to naming a guardian if you have minor children and determining how your assets will be distributed, you will also name an executor in your will. This is the person you entrust with managing your estate and distributing your assets.

File paperwork

After a person dies, their executor will file the will in probate court and complete forms that initiate the probate process. If the deceased person’s assets are not held in a trust, the executor must wait for the probate court to authorize them to handle the estate.

After the executor is authorized to begin work on settling the estate, they will open an estate bank account and access the deceased person’s funds.

Inventory assets

Before distributing assets, an executor must inventory the deceased person’s assets. Property and homes may need to be appraised to determine their fair market value. It is important to determine the total value of an estate to determine whether any state or federal estate taxes are due.

Pay creditors

Before any assets can be distributed to the beneficiaries, the executor must pay creditors. The executor notifies any known creditors of the death to allow them time to invoice the estate. The executor will also place a notice of death, so any unknown potential creditors can also make a claim against the estate.

Depending on state law, creditors may have between three and six months to make their claims. If their claims are denied, claimants are also given time to contest a denied claim. This necessary step slows the probate process and delays asset distribution to the beneficiaries.

The executor pays funeral and burial costs, attorney’s fees, estate administration fees, and taxes. Executors should keep detailed records of the total value of the estate and debts paid. In some cases, assets must be sold in order to pay the decedent’s debts.

Pay beneficiaries

After all debts are settled, the executor will ask the probate court for permission to distribute the assets. The executor has a fiduciary responsibility to follow the instructions in the will and act in the beneficiaries’ best interests, but they must also follow the laws and instructions from the probate court.

What is the expected timeframe for paying the beneficiaries?

After paying the decedent’s debts, inventorying the estate, and getting consent from the probate court, the executor can begin distributing the decedent’s assets. The complexity of an estate, state and federal law, and administrative challenges can all impact how long it takes for the executor to distribute assets.

Asset distribution may go smoothly, but there may also be disputes that slow the process. If beneficiaries dispute how the assets should be distributed, the executor will need time to obtain legal advice and negotiate between the disputing parties and may even need the courts’ help in settling the dispute.

Once the executor has a clear plan for distributing the assets, they may take a staged approach. For example, the executor may choose to distribute specific bequests first while they wait for titles to real estate and property to be transferred to their new owners.

The timeframe for paying the beneficiaries may vary from months to years, depending on how long it takes executors to complete all the necessary tasks involved in settling an estate.

What if you need money more quickly?

The surviving spouse and minor children of a decedent may need money quickly, especially if the decedent was financially supporting them. Many states automatically allow the executor to provide a family allowance to the surviving spouse and minor children. If not, state law may allow the surviving spouse to petition the probate court for a family allowance.

A family allowance is released before debts are paid. A family allowance decreases the value of the estate, and the amount available for distribution may be capped under state law.

Whether you are an executor or beneficiary of an estate, it is a good idea to consult with an estate attorney throughout the probate process. Beneficiaries have recourse if they believe the executor is not distributing the estate assets in a timely manner or not effectively communicating their progress in fulfilling their duties.

A Katzner Law Group attorney can provide valuable guidance on responsibilities, timelines, and legal requirements when distributing an estate. Armed with knowledge of the probate process, you can be assured of a more efficient transfer of assets from the decedent to the beneficiaries.

You can schedule a call with us or reach us directly at 855.631.3457 to learn more about how to best plan today to protect those most important to you.