Legal Question in Wills and Trusts in New York

Re: Waiting for the government

The government is not holding the money. It sounds like a tax return has been filed and the executor is waiting to see if it's approved or they may have to pay more money.

My own approach in these situations is to figure what is the absolute worst that can happen, hold a reserve and distribute. But NY may require a closing letter before distribution.

Try asking the executor for a partial distribution.

Re: Waiting for the government

You have a fundamental misunderstanding about how probate works. It is not the government that his holding your money, it is the executor. Having said that, the executor is personally liable for any taxes due from the estate if he or she pays someone else (like you) before the taxes are paid. As a result, one significant factor in the delay for probate estates in my experience can be clearing the estate and income taxes of the decedent.

If you are in dire straits, you can ask the executor, or the probate court, for a partial distribution. In the meantime, you can also ask the executor/administrator what the status is, and when distribution can be expected. If you don't get satisfactory answers, you should consult an attorney to assert your rights to information, etc.

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Re: Waiting for the government

The governement has nothing to do with the probate of an estate. Either contact the named executor or the court where the matter is pending to find out the status. Good luck.

Re: Waiting for the government

From what you describe, there were probably both Federal and State Estate/Inheritance Tax Returns filed. Businesses were evaluated and the taxing authorities are probably reviewing the valuation methods to determine accuracy. In large estates it is not unusual for the taxing authorities to take months to review the returns, and the State may wait until the IRS finalizes its review. However, in these instances, where the taxes have been paid, it is not unusual for the estate to reserve some funds to cover any anticipated tax increases. An interim distribution of the estate could be made with the remainder to be held up until the tax matters are resolved. I had a situation recently where one beneficiary needed money to buy a house and the others agreed to allow an advance to be made, even though they were not getting their equivalent share. Discuss this with the Executor.