QUESTION
Is it illegal for an executor to take a distribution from an estate before all debt are paid?
Asked on Apr 29th, 2015 on Estate Litigation - New Jersey
More details to this question:
I am a co executor and co beneficiary of an estate. The other executor wants to take a personal distribution as they are a beneficiary of this estate. I do not want them to do so as there are debts to the IRS to be paid. Is it illegal to take a distribution before debts are satisfied?
1 ANSWER
2 Awards
It is not illegal, bu it might not be a good idea. If there is more than neough assets, and the debt is small you can make a partial distribution, but the risk is that the monies distributed are needed to pay estate debt.
Answered on May 07th, 2015 at 9:54 AM
Diana L. Anderson, Certified Elder Law Attorney This response is not legal advice and does not establish any form of attorney/client relationship