How to Distribute a Decedent’s Assets

If you're an estate’s administrator, you’re responsible for distributing the decedent’s property if the decedent bequeaths specific assets to beneficiaries. Before you distribute the assets, you should review the will’s bequests and devises carefully. Be sure to follow the appropriate steps for distributing both tangible and intangible assets.

Preparing to distribute assets to beneficiaries

• If the property named in a specific bequest or devise is no longer owned by the decedent at death, it has no effect. As the lawyers say, it's considered adeemed. The heir, or legatee, receives nothing, unless state law provides otherwise.

Distributing the decedent's assets

• Have the recipient date and sign a receipt for the property.
• If the distribution completely fulfills the bequest or devise, obtain the beneficiary’s signature on an assent to the allowance of your accounts as executor.

Handling tangible property

• Personal property (bequests— gifts under the will of personal property) can be distributed after:
  • You’ve been appointed as executor
  • The property has been appraised
  • The date for filing of claims has passed
  • You’ve made sure that you have adequate funds to pay all estate expenses
  • You’ve checked the estate and income tax consequences
  • In some states, the title to real estate passes automatically to the heirs upon the decedent’s death. You don't need to take any formal action.
  • In many other states, real estate held in the decedent’s name alone appears on the estate inventory and must pass through probate in the same way as any other probate property.
  • In some states, to distribute specifically devised real property, you specifically petition the court for approval of distribution of the real property and get a court order allowing the distribution and including the property description.

  Handling intangible property

  Intangible property is property that has no value in and of itself but is the evidence of value. You can distribute intangibles the same as tangibles. But bearer bonds may require re-registration in the beneficiary’s name.

  To have stocks and bonds re-registered in a beneficiary’s name, either send or take the following for each security either to the transfer agent or to a bank or brokerage firm:

  • The bond or stock certificate
  • A form entitled “Assignment Separate from Certificate” with your signature guaranteed
  • A certified copy of your Letters of Authority as Executor obtained from the court
  • Depending on the transfer agent and your decedent’s state of domicile, you may also need an affidavit of domicile, a waiver of state taxes (from your state taxing authority), and certified copies of the decedent’s death certificate and will

  If you’re re-registering physical stock and bond certificates, the new certificates in the beneficiary’s name should be returned to you. Send the new certificates to the beneficiary along with a receipt for the beneficiary to sign and return in a postage-paid return-address envelope.

  Fulfilling bequest of specific dollar amount

  To fulfill a bequest of a specific dollar amount — known as a pecuniary bequest — write a check on the estate’s checking account at the same time you distribute tangible personal property.

  About This Article

  This article can be found in the category: