Legal Question in Wills and Trusts in New York
Admin wants to distribute cash; is suspect of foul play
Please set me straight on this question: Can the Admin of an Estate, (who is also an heir to that Estate), make a ''partial distribution'' of assets (cash) to himself ONLY if an equal distribution is also made to the other heirs? Admin, who has kept other heirs out of loop, suddenly wants to make a substantial distribution of cash to other heirs. Other heirs feel that offer is ploy only to justify Admin having legal grounds to make distribution to himself as well. Estate not fully settled, decedent assets liquidated but no taxes paid to IRS. Assets sizeable; 1.5 Mil cash sitting in bank. Heirs feel Admin up to no good, wouldn't be offering cash unless something was in it for himself too. Claims accountant hasn't prepared estate accounting, yet has had 2 years to do so. Whats the scoop with distributions? We may retain whomever responds; I'm not necessaily looking for free advice. Replies appreciated.
3 Answers from Attorneys
Re: Admin wants to distribute cash; is suspect of foul play
It is not unusual for there to be a partial distribution of assets. An amount is generally reserved to pay taxes and the the expenses of administration, etc. You certainly may retain an attorney to protect your interests and you may also demand a formal accounting (which his increase the cost of administration).
Daniel Clement
Re: Admin wants to distribute cash; is suspect of foul play
Further information needs to be developed here to determine, among other things, the reasons why an Estate Accounting has not yet been filed, the reasons a Federal Estate tax return has not yet been filed and any applicable Estate taxes paid, and the reasons for proposing partial distributions to beneficiaries at this time. There are a number of fact-specific issues under NY law that need to be carefully considered and dealt with concerning the will and the administration of the Estate. An experienced probate/estate planning attorney should be able to handle this under NY law. Please note that my legal services are available only with a signed engagement agreement in accordance with the Code of Professional Ethics applicable to attorneys licensed in the state of NY. If I can be of any help to you or people you know, give me a call as I would be pleased to provide legal support. Sincerely, Robert Beatson, II; 8-2-2002, 11:10 a.m. EST; Law Offices of Robert Beatson, II; 9818 Glynshire Way, Potomac, MD 20854; Tel/Fax 301-340-2951; email: [email protected]; website: www.beatsonlaw.com; Licensed to practice law in DC, MD, VA, and NY.
Re: Admin wants to distribute cash; is suspect of foul play
I assume that you have described a situation where the Administrator along with others share in the residue of the estate.
Sure, he can make distributions, provided everyone, including himself, gets the proper percentage share. The Administrator should not be treated any differently from other beneficiaries for these purposes.
I'm surprised that beneficiaries would gripe at receiving a distribution merely because the Administrator is also getting his fair share.
Keep in mind that the Administrator is personally liable if he distributes too much money from the estate and consequently has not reserved enough money for the payment of taxes and debts. Of course he can try to recover any shortfall from the folks who shared in the excessive distribution, but that's not easy.
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