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  1. #1
    Join Date
    Feb 2008
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    2

    Default Early Distribution From Estate

    My sole surviving parent recently passed away (2 months ago) leaving my sibling and I roughly $1.5m in stocks and misc. We are the only two heirs and my sibling is the executor.

    My question is how to obtain early distribution. Taxes have been filed and we are waiting for the IRS to respond. We anticipate very minor tax obligations from that filing.

    What is required to to accelerate this process? My urgency is not the need for money, but is based on the current stock market situation and not being able to control the assets while they waste in limbo.

    Is there an option for distributing the main percentage and keeping a partial fund for taxes or bills that might come later? Is this commonplace? Should we get attorney's involved or do this ourselves?

    Thank you

  2. #2
    Join Date
    Sep 2005
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    Default Re: Early Distribution From Estate

    Laws are different in each state.

    It's a shame your parents didn't create a trust, so that you would receive the stocks without going through probate.

    Generally speaking, you would petition the court for a partial distribution after documenting that the estate will still have ample resources to pay all of its debts and obligations.

    You have to be careful hiring a lawyer, as in some states the lawyer will get a percentage of the estate as a fee. It sounds like this is a pretty simple estate, so that would likely be disproportionate to the work involved. If that's the case in your state you may wish to hire a lawyer on an hourly basis to consult with the executor, as opposed to being the lawyer for the estate, or hire an accountant to assist with tax returns and financial paperwork.

    Really, though, with two heirs and with one of you as executor, you should work to wrap up the estate as quickly as possible so that the estate is settled and you no longer have to deal with these issues.

  3. #3
    Join Date
    Feb 2008
    Posts
    2

    Default Re: Early Distribution From Estate

    Quote Quoting Mr. Knowitall
    View Post
    Laws are different in each state.

    It's a shame your parents didn't create a trust, so that you would receive the stocks without going through probate.

    Generally speaking, you would petition the court for a partial distribution after documenting that the estate will still have ample resources to pay all of its debts and obligations.

    You have to be careful hiring a lawyer, as in some states the lawyer will get a percentage of the estate as a fee. It sounds like this is a pretty simple estate, so that would likely be disproportionate to the work involved. If that's the case in your state you may wish to hire a lawyer on an hourly basis to consult with the executor, as opposed to being the lawyer for the estate, or hire an accountant to assist with tax returns and financial paperwork.

    Really, though, with two heirs and with one of you as executor, you should work to wrap up the estate as quickly as possible so that the estate is settled and you no longer have to deal with these issues.
    It is in a trust form. My sibling is the executor. No probate required. The attorney that was hired by my sibling wants to wait until all IRS forms are complete and until they have heard back from the IRS giving the "all clear". I find this to be annoying.

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