Legal Question in Wills and Trusts in Pennsylvania

It is possible to do a partial distribution but keep some funds in the estate account before the entire estate is settled. You should have legal advice about preparing an account, and a Receipt, Release and Refunding Agreement, so that if additional estate/inheritance taxes are due, you will be able to have the beneficiaries give back the proportionate share of the unpaid taxes.

After you complete sale of the other assets, you should prepare a final account and a Receipt, Release and Refunding Agreement. It is always possible that the Inheritance Tax Division of the Department of Revenue will claim that additional taxes are due.

THIS RESPONSE IS NOT LEGAL ADVICE, SINCE I DO NOT HAVE ALL OF THE INFORMATION THAT WOULD BE REQUIRED, AND I DO NOT HAVE A REPRESENTATION AGREEMENT WITH YOU.

* If the answers to your question confirm that you have a valid issue or worthwhile claim, your next step should almost always be to establish a dialog with a lawyer who can provide specific advice to you. Contact a lawyer in your county or township.

* Another reason for contacting a lawyer is that it is often impossible to give a good answer in the Internet Q&A format without having more information. The unique circumstances of your situation and things that you may not have thought to mention in your question may completely change the answer. If you want to be sure that you have a complete answer to your question and an understanding of what that answer means, establish a connection with a lawyer who practices in the area of your concern.

You can do a partial distribution, but it depends on what other outstanding obligations there are before any money is distributed. Most executors get a release/receipt if they make an early distribution.

Any distributions made before the final account are at risk. That means that if any additional monies are owed, the executor will then have to go back to the beneficiaries to reclaim the property. That can be very awkward. The executor can also be held personally liable for causing any loss to the estate. That is why an executor who does make an early distribution will get a receipt/release and an agreement by the beneficiary to return the money or items if required.

If you do not already have an attorney to help administer the estate, you should consider getting one.