Distribution

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Latest post 08-26-2006 4:30 PM by Anon00. 7 replies.
  • 08-20-2006 12:55 PM

    Question [=?] Distribution

    I'm sorry I can't remember if I asked this before.

    A probate lawyer had drawn up a Will for my parents. In the will she states the bank account numbers and the beginning balance of the account and who it should go to.

    Just because the Will states the initial amount does not mean that beneficiary will ge the starting amount, it could decrease or increase, am I correct, thanks?

    If I lump all the monie together and pay the debts how would I distribute the money? Or is it better I take half of the debts from one beneficiary's account and the other half from the other beneficiary's account.

    Thanks.
  • 08-22-2006 1:31 PM In reply to

    re: Distribution

    "Just because the Will states the initial amount does not mean that beneficiary will ge the starting amount, it could decrease or increase, am I correct, thanks?"

    Of course. The accounts belong to the person(s) named on them and can be closed out before death as well. Will's terms are only relevant if the accounts still exist at time of death (and nothing's changed in regard to, say, the owner of the account(s) having named a pay-on-death beneficiary).

    "If I lump all the monie together and pay the debts how would I distribute the money? Or is it better I take half of the debts from one beneficiary's account and the other half from the other beneficiary's account."

    Sounds like this will was worded oddly. Unless the accounts had a pay-on-death beneficiary, the administrator should transfer the monies into an estate account. As for the matter of in what order the bequests should be made, that's a state-specific question. It may be that the bequests should be paid in order of appearance in the will, if the money doesn't need to go toward estate debt.

    You need to consult with a local estate-probate attorney.

  • 08-22-2006 8:18 PM In reply to

    re: Distribution

    Yes, you are correct. The amounts stated could increase or decrease depending on the circumstances after the will was drafted.

    As to debts, these must be paid pro rata from the share of all beneficiaries, and an executor cannot favor one over another by reducing the share of one to pay debt.

    Sharon M. Siegel, Esq.

    Siegel & Siegel, P.C.

    Phone: 212-721-5300

    email: sieglaw@optonline.net

    website: www.siegelandsiegel.com

  • 08-23-2006 10:22 AM In reply to

    • Drew
      Consumer
    • Top 10 Contributor
    • Joined on 03-30-2000
    • PA
    • Posts 49,110

    re: Distribution

    There is a little bit of room as to the details--if the will reads that X gets $1,112.10 now in account # 23456 its possible that a specific bequest is not subject to pro rata expenses but it comes from the remaindermans take. I don't think that how your stuff reads--but its important to review the technical details with state specific counsel--at least before you make final distributions.



  • 08-26-2006 4:27 PM In reply to

    Question [=?] re: Distribution

    Thank you.

    I'm sorry, I don't understand what 'pro rata' means.

    The executor isn't going to favor one beneficiary over the other. The debts will be deducted equally from all beneficiaries. Is this what you mean by pro rata?

  • 08-26-2006 4:29 PM In reply to

    Feedback [*=*] re: Distribution

    Thanks for the reply.

    I suppose this would be a question for all executors. If bank accounts are left to beneficiaries named in the Will, lumping the accounts together to pay for debts may result in unfair distributions?

    Just wondering how most executors go about doing this.
  • 08-26-2006 4:30 PM In reply to

    Feedback [*=*] re: Distribution

    OK, thanks. I'm going to review the Will.
  • 09-09-2006 12:51 PM In reply to

    Feedback [*=*] re: Distribution

    I'm sorry, just wanted to update.

    I looked over the Will carefully and NO the probate lawyer did not write the beginning balances of the accounts.

    There are also two accounts with the same amount left to two different beneficiaries, so I think the fair thing to do, when the time comes, is split the debts in half and take out from each account the cost of debt, executor fees I would think would come from the beneficiaries's accounts and not the beneficiary who is also the executor?, etc.

    Thanks for all your info...
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