When beneficiaries named in an estate know they will receive a portion of the decedent’s property, they get anxious. In most common estates, beneficiaries are unaware of the following factors that determine the length of time it will take the executor to distribute property:
• Executor responsibility – The priority for any executor is to pay the expenses and the taxes of the estate. Also, the executor must provide the probate court with an Inventory of Assets as depicted in the article Understanding the Task in Front of You. The Inventory must include the values of all property owned by the decedent, including assets with designated beneficiaries, to determine if the gross value of the estate meets the threshold for filing estate taxes.
• How the beneficiaries are to receive property – Either through the will or directly from the decedent’s assets as a designated beneficiary. • Estate Law is state specific – Estate law is different in most states. Therefore, how long it takes to administer an estate will depend on the location of the estate and the estate laws of that specific state. So, the beneficiaries need to know that the location of the estate and how they receive property of the estate affects when the executor can distribute the decedent’s property. Beneficiaries Named in a Will Beneficiaries named in a will must understand that the executor controls the decedent’s property throughout the estate administration. Also, the beneficiaries aren’t guaranteed the property listed in the will. If the expenses and taxes of the estate exceed the assets of the estate, the executor needs to use abatement rules to reduce the bequest left to beneficiaries to cover the estate liabilities. So, until the executor pays the expenses and taxes of the estate, only then will the executor distribute the property, or what’s left, to the beneficiaries named in the will. However, the distribution rules aren’t set in stone. If the estate is well-funded and the executor feels confident that the estate has more than enough assets to cover the liabilities of the estate, then the executor could distribute property early if the probate court allows in some states. Conversely, if the solvency …show more content…
The beneficiary knows that the assets are not the property of the estate. Therefore, these beneficiaries feel they should receive the property immediately after the death of the decedent. The beneficiaries overlook that there is a process an executor needs to follow before distributing property set forth by estate law. In most states, the probate court dictates that the executor must complete an Inventory of Assets that includes all the property and associated values of the decedent. Furthermore, estate law allows the executor time to complete this inventory. For instance, in Massachusetts, estate law gives the executor three months from the date of appointment to complete the inventory. If the estate involves property located out of state or other complications, estate law will grant the executor more time. However, as mentioned in the article Setting up the Formal Probate Process Part 1, in common estates, executors can complete the inventory before submitting the will to the probate court. As a result, soon after submitting the paperwork to the probate court, the executor can distribute the property to the beneficiaries. So, designated beneficiaries may only have to wait a month depending on the complexity of the
• Executor responsibility – The priority for any executor is to pay the expenses and the taxes of the estate. Also, the executor must provide the probate court with an Inventory of Assets as depicted in the article Understanding the Task in Front of You. The Inventory must include the values of all property owned by the decedent, including assets with designated beneficiaries, to determine if the gross value of the estate meets the threshold for filing estate taxes.
• How the beneficiaries are to receive property – Either through the will or directly from the decedent’s assets as a designated beneficiary. • Estate Law is state specific – Estate law is different in most states. Therefore, how long it takes to administer an estate will depend on the location of the estate and the estate laws of that specific state. So, the beneficiaries need to know that the location of the estate and how they receive property of the estate affects when the executor can distribute the decedent’s property. Beneficiaries Named in a Will Beneficiaries named in a will must understand that the executor controls the decedent’s property throughout the estate administration. Also, the beneficiaries aren’t guaranteed the property listed in the will. If the expenses and taxes of the estate exceed the assets of the estate, the executor needs to use abatement rules to reduce the bequest left to beneficiaries to cover the estate liabilities. So, until the executor pays the expenses and taxes of the estate, only then will the executor distribute the property, or what’s left, to the beneficiaries named in the will. However, the distribution rules aren’t set in stone. If the estate is well-funded and the executor feels confident that the estate has more than enough assets to cover the liabilities of the estate, then the executor could distribute property early if the probate court allows in some states. Conversely, if the solvency …show more content…
The beneficiary knows that the assets are not the property of the estate. Therefore, these beneficiaries feel they should receive the property immediately after the death of the decedent. The beneficiaries overlook that there is a process an executor needs to follow before distributing property set forth by estate law. In most states, the probate court dictates that the executor must complete an Inventory of Assets that includes all the property and associated values of the decedent. Furthermore, estate law allows the executor time to complete this inventory. For instance, in Massachusetts, estate law gives the executor three months from the date of appointment to complete the inventory. If the estate involves property located out of state or other complications, estate law will grant the executor more time. However, as mentioned in the article Setting up the Formal Probate Process Part 1, in common estates, executors can complete the inventory before submitting the will to the probate court. As a result, soon after submitting the paperwork to the probate court, the executor can distribute the property to the beneficiaries. So, designated beneficiaries may only have to wait a month depending on the complexity of the