Inheritance Distribution

Before any distribution is attempted debts must be settled and taxes paid. You do not want to be in a position where you have to pay debts and tax bills yourself because not enough money from the estate was kept back to cover them!

Following the payment of both debts and taxes, the remainder of the estate can then be distributed to the beneficiaries according to the will or distributed according to the law if there is no will (Rules of Intestacy).

Where there is a will – if several beneficiaries are specified, it is incredibly important legally to ensure that each one receives the correct inheritance as per the will writer’s wishes. If one or more of the beneficiaries is a child then their portion of the inheritance must either be kept in a trust by the executor until the child or children reach 18 or the parent/guardian of the child/children accepts the inheritance on their behalf. The will must specify this if it is the latter of the two scenarios.

In the absence of a will (or if the will is invalid) – the court will distribute the deceased’s assets according to the rules of the state where they were resident. These are known as the Rules of Intestacy. In short, the rules specify that the estate distribution prioritises family members first (co-habitees who are unmarried are not included in intestacy provisions). This can be a long and complicated process taking several months, potentially even years.

Executors are fully responsible for the distribution of the deceased’s estate therefore can be personally liable for any mistakes made during the process. It is just one of the many reasons why we recommend seeking professional advice before starting the probate process.