Winding up an Estate

2010

Does an estate have to be entirely completed before any monies can be distributed to the beneficiaries.

For instance if a person is left a set amount of money and that money is available, can that money be given out.

Or does every thing else have to be completed, such as a property in the process of being sold.

Tuesday_Tenor

The Executor has the power to make interim payments to beneficiarires before the estate is fully wound up. The use of this power is entirely at their own discretion.

Where an estate is going to take a long time to administer (e.g. sale of property) but there are sufficient cash assets as well, it is quite common to make such interim payments.

Two things for the executor to be aware of:
1) They must be cautious, and be 100% certain that there will be sufficient funds left in the estate, after such payments, to cope with all likely outgoings: inheritance tax (if applicable), expenses on house insurance/utilities until sold, any interim payments due to solicitors etc.
If they get this wrong they might have to personally bear such payments until more assets are received into the estate from the sale of the property.

2) They would be well-advised to be fair to all beneficiaries. It might not be fair to distribute specific cash bequests made in the will while making the 'residual beneficiary' wait, with no interim payment, until the property is sold. I guess it depends on the circumstances, and ultimately the decision is entirely at the Executor's discretion.