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Early distribution of funds?

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Impatient Inlaw

Junior Member
What is the name of your state? Illinois

My mother-in-law died last year without leaving a will. She left behind mutual funds and a house. Since then the house has been sold and all the mutual funds have been cashed. My sister-in-law, the estate administrator, has put all the funds into what she calls "a special account". She said she would cut checks to all the siblings (including my husband) when the "lawyer says it's ok". Apparently she's waiting for the court to officially close the probate or something? In the process of finalizing the probate, the lawyer dug up some stocks my mother-in-law had that no one knew about, so now we have to wait for those to be sold before the lawyer can go back to court to have a judge sign off on everything.

My question is, is there any legal reason why we can't get a share of the money NOW? The estate/special account has more than enough money to cover the estate's bills, so I'm really unsure why we can all get at least a small portion of what we're owed. I'm really confused as to how this all works and she wont talk to me and the probate lawyer doesn't return anyone's calls.
 


seniorjudge

Senior Member
Q: My question is, is there any legal reason why we can't get a share of the money NOW?

A: Yes. "The estate/special account has more than enough money to cover the estate's bills, so I'm really unsure why we can all get at least a small portion of what we're owed." Until those bills are paid, the cookie jar stays closed.
 

Impatient Inlaw

Junior Member
Ok, because what I was reading was that as long as there were enough funds to pay what the estate owes distribution times were arbitrary. Is that only when there's a will in place?

It's extremely frustrating to not know what's going on. The administrator is painfully vague saying things like "oh, it'll be a few more weeks" since last April everytime we ask for an update.
 

seniorjudge

Senior Member
Q: Ok, because what I was reading was that as long as there were enough funds to pay what the estate owes distribution times were arbitrary. Is that only when there's a will in place?

A: Will or no will, it makes no difference. The creditors must be determined and must be paid before the heirs.


Q: It's extremely frustrating to not know what's going on. The administrator is painfully vague saying things like "oh, it'll be a few more weeks" since last April everytime we ask for an update.

A: Get a full copy of the file from the courthouse; that should answer some questions.
 

tadpole

Junior Member
Ga. tadpole, feels your frustration

Get this, we have 2 executor's over dad's will written in 1987, he died 1990.
Executor can't give accountability other executor can't be found didn't know where dad's cd's had gone. One was in his name, the other in joint with mom's name and his name. But shouldn't the one in Dad's name been honored. This executor stated she got her inheritance early. Well someone has wiped out the three banks of dad's cd's. Sounds like something crooked to me. Dad's will stated his widow would be entitled to interest only.
Upon her death all the rest and residue would go in equal shares to 5 children. All his biological children, 2 from prior marriage, other from his second marriage. Dad was trying
to take care of all his assets. Thinking mostly of mom he left all her all rights to home, auto's, tractors, savings accts, checking account and she was to draw interest from cd's. She and one daughter has hide remaining monies and her new will and she almost died a couple of months back, frustrated that dad's will has not been carried out according to his distribution of estate. PS: Sharing your frustrations and hoping the Lord will fight for both you and me. Trusting in God.
 

peppylady

Member
Florida tadpole feels it too!

How about a Personal Representative trying to sue you because you are getting more than the other siblings? That is what is happening to me now. He thinks it unfair I should get more. Totally sick of the whole thing.
I pray each day the PR (My brother) comes to his senses and stops spending the estates money on this frivolous lawsuit.
God Bless you too.
 

dmode101

Member
Impatient Inlaw said:
What is the name of your state? Illinois

My mother-in-law died last year without leaving a will. She left behind mutual funds and a house. Since then the house has been sold and all the mutual funds have been cashed. My sister-in-law, the estate administrator, has put all the funds into what she calls "a special account". She said she would cut checks to all the siblings (including my husband) when the "lawyer says it's ok". Apparently she's waiting for the court to officially close the probate or something? In the process of finalizing the probate, the lawyer dug up some stocks my mother-in-law had that no one knew about, so now we have to wait for those to be sold before the lawyer can go back to court to have a judge sign off on everything.

My question is, is there any legal reason why we can't get a share of the money NOW? The estate/special account has more than enough money to cover the estate's bills, so I'm really unsure why we can all get at least a small portion of what we're owed. I'm really confused as to how this all works and she wont talk to me and the probate lawyer doesn't return anyone's calls.
If the Estate properly publlished and notified known creditors, then claims are cut off 6 months after first publication date. Once that has paassed, the estate should know what all its liabilities and should be able to reasonably estimate remaining expenses. Unless there is some dispute, there is then (probably) no good reason for the executor not to make partial distributions.
 

Impatient Inlaw

Junior Member
dmode101 said:
If the Estate properly publlished and notified known creditors, then claims are cut off 6 months after first publication date. Once that has paassed, the estate should know what all its liabilities and should be able to reasonably estimate remaining expenses. Unless there is some dispute, there is then (probably) no good reason for the executor not to make partial distributions.
Thank you! From what I know, the estate was made public in April of last year and all debts have since been accounted for (we got a print out of who was owed what last fall). All we're waiting for now is all the newly found assets to be collected. That's why I find it so strange that no one can get any checks yet. I don't know if they have to collect all the new assets, get a final number then re-publish the estate and re-wait for creditors? I hope not because that will push this thing back even further.

Good luck to everyone else going through a rough time!
 

Dandy Don

Senior Member
Impatient, the reason that early distribution can not be made is that there are tax implications for the stock. I know it seems a bit unfair to make the beneficiaries wait so long but that's how it is.

tadpole, you should be consulting with a local probate attorney to find out what options you have for investigating the early cashing in of the CD's--this is possibly abuse of POA (if the executor had in fact been granted POA by the decedent and if the executor used the POA to submit a beneficiary change designation form to the bank or if he/she used the POA to cash the CD in before or after it's maturity date--the POA expired at the same time the death occurred so if it was cashed in after death that is technically theft from an estate). Usually the bank will not release information to anyone besides the executor, so I'm wondering if your attorney would have to file a lawsuit against the bank to get information about what actually happened. Please mention the name and city state of the bank (I can look up the bank official name to see if it has an FSB--federal savings bank---after its name--if it does, if you wanted to you could request a bank examiner to look at the CD records to see what actually happened and you would not then need the services of an attorney). You also need to consider in the near future hiring a PI to locate the "missing" executor--this is very suspicious--implication is possibly that the executor got away with stealing from the estate. And you need to look at the probate file to see if this executor posted an executor's bond or whether the will has specific language that exempted the executor from getting a bond. If a bond was purchased that might be an aveune to pursue a claim for any monies stolen from the estate.

DANDY DON IN OKLAHOMA ([email protected])
 

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