A will has to go through the probate process before beneficiaries can receive shares of a decedent’s estate. The probate process can take a few months up to several years, depending on how big the estate is. Estimating how long it takes for the executor to pay beneficiaries depends on how quickly the executor files the will with the probate court and how long it takes to inventory the estate’s assets and pay the estate’s bills.
The executor of a will is a person who has the legal authority to represent a deceased person’s estate and distribute assets to their beneficiaries. This article explains the steps executors must take to pay beneficiaries, the key factors that influence how long estate administration takes, and what happens if an executor takes too long or doesn’t fulfill their duties.
How long does probate take?
There is no set deadline for how long probate takes. The length of time for paying beneficiaries of a probate estate depends on several factors, such as when the executor files the will with the probate court, estate expenses and assets, and estate tax liability. That being said, the probate process typically takes anywhere from six months to a year or more.
How long the estate administration process takes depends on:
- How quickly the will is filed with the probate court. The length of time before the will is filed depends on who has the will, how long it takes to find the will, and timeframes dictated by state probate laws.
- The value of the estate and the estate’s assets. The value of the estate and estate assets (such as bank accounts, stocks and bonds, and real estate) can affect the estate settlement timeline. Larger estates that have lots of assets will likely take longer to settle than smaller estates.
- Estate debts and creditors. Estate expenses need to be paid off before an executor can distribute the remaining assets to beneficiaries.
- Estate taxes. The executor must apply for an employer identification number (EIN) for the estate, file tax returns, and pay any taxes owed. Any money or property the decedent owned when they died may be subject to federal estate tax.
- Location. Probate laws vary by state. Some states have a required waiting period during which creditors can submit claims. The executor cannot distribute assets until after the creditor claim period has passed.
- Whether the will is contested. There are several reasons why a will may be challenged, including if the decedent has multiple wills naming different beneficiaries, if beneficiaries believe the most recent will isn’t valid, or if family members have been left out of the will. Contesting a will can be a lengthy (and expensive) process.
The estate administration process often involves several tasks that an executor must perform before they can pay beneficiaries.
4 executor steps to pay beneficiaries
There are a few steps an executor must take before paying beneficiaries, including filing a petition, identifying the decedent’s assets, and paying all the debts.
Step 1. File a petition for probate
The first step an executor must take is to ask the court to officially name them as executor or personal representative. If the decedent dies without a will, an interested party can petition the court to request to be designated as the administrator of the estate.
Petition requirements vary by location, but petitions typically include:
- The decedent’s death certificate
- The decedent’s Social Security number and address
- The will
- The names and addresses of any surviving family members
- The names and addresses of beneficiaries
Once the executor has completed the petition, they can file it at the probate court in the county where the decedent was residing when they died.
Step 2. Determine all assets
The executor will need to provide the court with a list of the decedent’s assets–including tangible personal property, real estate, business interests, and stocks and bonds–and may need to have assets appraised.
Step 3. Pay bills and taxes
An executor must notify creditors to let them know the estate is being probated. Debts and taxes must be settled before beneficiaries can get paid. The executor may need to open a temporary estate bank account to centralize funds and pay any outstanding debts.
Depending on the size and complexity of the estate, the process of consolidating funds, notifying creditors, and paying debts and taxes can significantly delay the probate proceedings.
Step 4. Pay beneficiaries of the estate
The final step in the probate process is paying beneficiaries. After debts and taxes have been paid and disputes have been resolved, the executor can pay the beneficiaries and settle the estate.
Key factors influencing the estate settlement timeline
The probate process can drag on due to a range of factors, including state laws, the extent of the decedent’s assets, outstanding debts, tax obligations, legal challenges, and disputes among beneficiaries and heirs.
State laws
According to the IRS, it typically takes around 30 to 90 days after a person dies for a probate proceeding to be opened, only after which the executor can begin the process of inventorying assets and paying debts.
Due to varying state laws, there is no standard timeline for how long executors have to pay beneficiaries.
For example, in Virginia, executors are not required to pay beneficiaries until at least six months after they have been qualified. However, the executor should pay beneficiaries within one year to avoid accruing interest.
In Florida, the executor must wait at least three months after publishing a notice to creditors before they can close the estate.
Complexity and size of the estate
Due to its complexity, a large estate with lots of assets, substantial debt, or property in multiple states can take longer to settle than a smaller estate with limited assets.
Debts and taxes
Executors must pay all debts and taxes–and may have to leave the estate open for creditor claims for a period of time–before they can distribute assets to the beneficiaries.
Legal disputes and family dynamics
Legal disputes may arise if the decedent had multiple wills, the decedent left a family member out of a will, or if an interested party believes the will was made under suspicious circumstances.
For instance, an interested party may challenge a will if they believe:
- The decedent made the most recent will under duress
- The will was forged
- The decedent was not of sound mind when they created the new will
Another factor that can come into play and lengthen the duration of probate is family dynamics. If the spouse or children of a decedent believe the will does not adequately provide for their needs, they may contest the will.
Determining the validity of a will can significantly extend the probate process.
Our step-by-step online tool helps you make key decisions with confidence, at your pace.
What if the executor takes too long or fails in their duties?
An executor has a fiduciary duty to represent the estate and to act in the best interest of its beneficiaries. There are a few actions you can take if an executor fails to meet their obligations or unnecessarily delays the probate process.
Request estate accounting
Unless potential beneficiaries waive the requirement, executors must keep them informed about:
- Bills that have been paid
- Assets that have been dispersed
- The status of the estate’s property
Interested parties can request estate accounting to get an idea of where the estate stands and the activities that have taken place. They can also question an estate accounting they have received by filing a petition with the court.
Petition the probate court
If the executor does not file required estate accounting or otherwise neglects to act in the best interests of beneficiaries, an interested party can file a petition with the court to request the removal of the executor.
The court will set a date for a hearing and decide whether the petition is warranted. If the court finds that the executor breached their fiduciary duty, the executor may face:
- Reduced compensation
- Removal as executor
- Penalties and other sanctions
- Criminal prosecution
Require a transaction reversal or fine
In the event that an executor behaves unethically, you may be able to fine them or have the executor return assets or reverse transactions.
Pursue criminal prosecution
You can take legal action against an executor if you believe they intentionally delayed the probate process or acted outside of the best interests of the estate and its beneficiaries.
Remember that a lengthy probate process is normal. It doesn’t necessarily mean the executor engaged in deliberate misconduct.
If you are a beneficiary who believes the executor is not meeting their responsibilities and is unsure of which action to take, your best bet is to seek legal advice from a probate attorney who offers comprehensive estate administration services.
FAQs
What if beneficiaries need money quickly?
Beneficiaries typically have to wait until the executor has determined that the estate has sufficient assets to pay creditors and taxes.
However, if the estate is large enough and the jurisdiction’s estate law allows it, the executor may be able to distribute assets before the probate process ends.
Conditions may apply if a beneficiary gets paid early. For example, in Virginia, the executor may require beneficiaries to sign a refunding bond, which requires the beneficiary to refund a portion of the distribution if it is later needed to pay future claims against the estate.
Can an executor withhold money from a beneficiary?
There are a few circumstances where an executor can withhold money from a beneficiary, including:
- When the estate has unpaid debts
- If the estate has unpaid estate taxes
- In situations involving probate disputes
What happens if the estate lacks sufficient funds to cover debts?
If a decedent has more debt than assets, that means their estate is insolvent. Beneficiaries to an insolvent estate may only receive part of their inheritance or may not receive a distribution from the estate at all.
One potential exception is if the decedent has a living spouse or dependent children, in which case the executor may be able to set aside an allowance for the surviving family members.
Does the executor get paid before they have to pay the beneficiaries?
An estate executor may be able to request compensation for out-of-pocket expenses and payment for performing executor services. Depending on the state, the executor may be able to receive payment for executor services before distributing assets to the beneficiaries.
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