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When Can an Estate Executor Start Paying the Heirs of an Estate?

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Estate Executor Calculator
Gilbert Arizona estate planning attorney

BY: Jake Carlson

Jake Carlson is an estate planning attorney, recognized business leader, inspiring presenter, and popular podcast host. He is personable and connects immediately with others. A natural storyteller, he loves listening to your story and exploring what matters most to you.

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I have settled my mother's estate and sent the final accounting paperwork to my three siblings. Two have signed off on the bond paperwork but my one brother is nitpicking the statements, asking for invoices for the lawyer, the CPA, etc. Can I send the other two their share of the inheritance or do I need to wait until everyone signs off?

An estate executor or executrix is the person who has been named to administer the estate of a deceased person.

The estate executor is appointed by the testator of the will (the person who makes the will) or by a court, when there was no prior appointment (and the individual dies intestate).

As the estate executor, you take a chance in distributing the estate before everyone has approved a final accounting and signed a Refunding Bond and Release.

This means that the heirs accept their distribution and release the executor from any claims concerning his or her administration of the estate.

Nj.comโ€™s recent article entitled โ€œCan I distribute inheritances now or do I have to wait?โ€ says that if one of the beneficiaries doesnโ€™t accept the executorโ€™s form of accounting and his or her purported share, the executor will need to bring an action in court seeking its approval of a formal accounting and release as executor.

This process can be very expensive and, if there is no misfeasance by the executor found by the court, the expenses are usually paid for from estate funds. This reduces the total pay-out to heirs. As a result, it reduces all the beneficiariesโ€™ distributive shares.

An estate executor has a fiduciary duty to the beneficiaries of the estate, which means he or she must manage the estate as if it were their own and manage the assets prudently. Thus, an executor canโ€™t do anything that intentionally harms the interests of the beneficiaries.

If the executor decides to pay some beneficiaries before all of the named beneficiaries agree to the distributions, he or she may not have the funds to bring the formal accounting action in court.

Itโ€™s usually a best practice to wait until everyone approves the accounting and provides the necessary paperwork, before making any distributions to any heirs.

Reference:nj.com (May 8, 2020) โ€œCan I distribute inheritances now or do I have to wait?โ€

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