Finalizing the Estate after Debts paid, house sold and assets ready to be divided

Finalizing the Estate after Debts paid, house sold and assets ready to be divided

     After all tax returns filled, debts and expenses paid and real estate sold, the Executor should get ready to distribute they assets. The taxes have been paid and the executor has received tax clearances from the IRS and the state. But first they either need Court approval or in many states simply approval from all of the beneficiaries. 

         When such a formal proceeding is not required in your state, it is nevertheless good practice to require all beneficiaries to sign a document, prepared by an attorney, in which they approve of your actions as fiduciary and acknowledge receipt of assets due them. This protects the fiduciary from later claims by a beneficiary. A final income tax return must be filed and a reserve kept back for any tax that may be due.

     Below are the forms used in New Jersey so all the beneficiaries can approve can receive money without court approval. The beneficiary will eventually be requested to sign a Release and Refunding Bond. If they have evidence of misappropriation, they may consider asking the executor for an informal accounting prior to signing the Release and Refunding bond. If they have concern regarding the handling of an estate, the beneficiary should schedule an appointment to consult an estate administration attorney.