If you have recently lost a loved one and you have been named in their will as an heir, you may be wondering when you will be receiving money. When assets are distributed to heirs depends on the type of assets held, as some assets do not go through probate. In any case, once the three-month will contest waiting period is over, partial distributions can be made. Creditors have twelve months to file against the estate for bills that are due, so final distributions are not done until one year after the will has been probated.
Life Insurance Policies Don't Go Through Probate
Life insurance policies go directly to the beneficiary named on the policy. To cash out the policy, either the beneficiary or the executor of the estate can fill out the forms supplied by the insurance company. How long it takes to receive this money will depend on how much time it takes for the company to process the application. These benefits are typically paid out quickly, as long as the beneficiary or the executor knows that the policy exists in the first place.
Bank Accounts and CD's May Have a Named Beneficiary
Some people name a beneficiary on their bank accounts or certificates of deposit (CD's) that become the primary owner of said bank accounts immediately upon death. This money also does not go through probate, but only if another person or beneficiary is named on the account.
The Estate Value Is Assessed by the Executor
The executor of the estate will collect any bank account information, property information, insurance properties, stocks, bonds, jewelry, and other valuable property, making an inventory of all property that was not specifically willed to someone. The executor is responsible for selling off any real estate, and in the end a final cash total is left for the heirs. If you inherited a percentage of the estate, you will receive your final disbursement right after the twelve month period for creditors has passed.
Depending on the value of the estate, you may see a disbursement of funds after the first three months, at nine months and then a final disbursement at the twelve month mark.
A solid estate plan allows those that have a high number of assets to give away their money as they see fit. It's possible that a sizable part of the estate does not go through probate, because it was left directly to named beneficiaries. It is also a possibility that all assets from the estate go through probate, if the deceased never named anyone specifically on any accounts. For more information, contact a firm such as Davis & Mathis.Share