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How are shares computed for dividing estate?

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CASchneier

Junior Member
What is the name of your state (only U.S. law)? New York
I am the executor of my father's will. After paying funeral costs, legal expenses, and taxes there is $600K in financial accounts (the probate part of the estate). In addition, there was a $180K life insurance policy with his two surviving daughters named as beneficiaries (non-probate part of the estate). The will states that 1/3 of the residuary estate be left to his surviving spouse, and 2/3 of the residuary to his daughters, to be split in equal shares. Is the residuary estate considered the probate part of the estate, OR the probate plus non-probate part of he estate? So when dividing the estate in thirds, does the surviving spouse get $200K (1/3 of the probate part of the estate), and the daughters $290K each ($200K probate estate plus half the insurance payout of $90K)? OR is the residuary estate the entire probate plus non-probate estate, in which case the surviving spouse and daughters get $260K each ($200K probate estate plus 1/3 of insurance payout of $60K)?
 


justalayman

Senior Member
the non-probate assets are not part of the estate and as such, are not used in the computation of the division of the estate. When dividing the estate assets, ignore any outside assets.

so, in your situation, the $600k is split $200/$400 with the $200 going to the wife and the $400 being split between the daughters so each actually ends up with $200k.

You should have nothing to do with the insurance. A claim is filed and the insurance company will write the check out to the beneficiaries listed on the policy.
 

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