More details to this question:
I have been asked to sign an interim distribution proposal after a year in informal probate. There seems to be an article of Maine law concerning a "10 day rule"? "As required by Maine law, in the event that any additional expenses, taxes and other debts are found to be due and payable by the Estate or the Personal Representative after this distribution, or it is found that such asset distributed to the undersigned must be abated to satisfy such other expenses, taxes and debts, the undersigned agrees to return to the Personal Representative the proportionate share of such expenses, taxes or debts or the amount to be abated represented by such distribution within ten (10) days of notification to me of such amounts due and to indemnify and hold said Personal Representative harmless from any such expense, tax, debt or abatement." Since I don't know if the taxes since 2013 have been paid perhaps I should wait to see a copy of the 2016 tax return before signing? Is this standard?
1 ANSWER
Maryellen Sullivan
Hi - Yes, this is standard. It is the personal representative's way of providing benefiiciaries with some funds before the estate is closed while ensuring that he or she will not be held personally responsible if some taxes or other expenses end up being more than than the amount of estate assets remaining. If you don't sign, you just won't get the interim distribution - so you would wait until the estate is ready to close after the 2016 tax return has been prepared (and whatever other actions are necessary) and then get a disbursement. If the possibility of having to return some of the disbursed funds is not worth it to you, then don't take the interim distribution but otherwise it sounds fine from what you have described.
Answered on Feb 25th, 2017 at 5:23 PM