QUESTION
How is distribution of estate assets done?
Asked on Oct 30th, 2011 on Estate Planning - New York
More details to this question:
The Executor (now removed by the court) gave away $40,000 cash from the residuary estate, that was to pay all expenses of the estate, to non-beneficiaries before the debts of the estate were vacated. She then claimed the estate to be bankrupt and that she could do whatever she wanted with this money because she was to inherit the residuary estate after all estate expenses were paid. What is NY state law regarding distribution of estate assets. How are they to be distributed and when?
1 ANSWER
Theodore W. Robinson
First, all debts of the estate must be paid, then all specific bequests must be paid, then all residuary money may be distributed according to the dictates of the Will. If the Executrix gave away theresiduary money first, thinking it was going to be hers anyway and there was not enough to pay the previous debts and specific bequests, then she is personally responsible forany losses to any specific bequests or debts. Speak to a local estate lawyer for further information and details.
Answered on Nov 02nd, 2011 at 1:49 PM