Partial Distribution of Estate Property

When an estate is in administration but is not at a point where it can be closed, there are sometimes reasons that arise for the administrator to distribute some of the estate property. Typically this issue arises if the executor or administrator is in the process of selling or collecting estate property, and the estate has enough liquid assets to support a partial distribution.

 

The executor, administrator, a beneficiary, or an heir may file an application for partial distribution with the court. The partial distribution allows one or all of the beneficiaries/heirs to receive some property from the estate, usually in the form of a cash distribution.

 

The application must provide:

  • The name of the estate,
  • The names of the individuals who are entitled to receive estate property, and
  • The reasons for the distribution of estate property.

 

All interested parties (usually the other beneficiaries/heirs but also including any creditors of the estate) must receive personal citation. If the applicant is requesting a distribution to one of the heirs but not all of the beneficiaries/heirs, that individual must have a refunding bond to guarantee the amount of the distribution; however, the other beneficiaries/heirs can waive the requirement of the refunding bond.