After a loved one’s death, it is normal for the beneficiaries to expect to receive their inheritance shortly thereafter. However, probate can take several months or longer, leaving families uncertain about when estate assets will become available.
In the Golden State, executors must follow specific legal procedures before distributing property to beneficiaries. Although probate usually involves settling an estate before distributing remaining assets, certain circumstances may allow for earlier distributions.
When can an executor make early distributions?
California law allows executors to make preliminary distributions before probate is completed. However, they must ensure that sufficient estate assets remain to cover outstanding debts, taxes and administration expenses.
Under California Probate Code Section 11620, an interested person may petition the court for a preliminary distribution of estate property. The court considers whether the distribution would interfere with the proper administration of the estate or prejudice creditors and other interested parties.
In some circumstances, executors may also distribute certain assets without a court order if they have the necessary authority and comply with applicable legal requirements. However, having authority to administer an estate does not automatically permit unrestricted distributions.
Risks of distributing estate assets too early
Premature distributions can create financial and legal complications, especially when an estate has unresolved debts or disputed assets. Executors have a fiduciary duty to protect estate property and act in the interests of beneficiaries and creditors.
If an executor distributes assets without retaining enough funds to satisfy estate obligations, they may face personal liability for resulting losses. Beneficiaries could also be required to return property or funds improperly distributed.
Before making an early distribution, executors should carefully assess an estate’s financial position and determine whether court approval is necessary. A legal practitioner can help to evaluate distribution requests, address outstanding obligations and help ensure compliance with state probate requirements accordingly.
