Partial distribution of inheritance

D

David_Dublin

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Wondering if anyone can advise on this. I'm executor for an estate and I want find out if it would be ok to distribute "partial" inheritance to a beneficiary now (50k, below the beneficiaries CAT threshold), and later to distribute the remainder of their inheritance (circa 200k) when the estate will be fully settled and all fees & other beneficiaries are paid in circa Setpember this year. The sum the beneficiary will receive later will be circa 200k, and will bring them over their CAT threshold.

There is a lot more than the 50k currently in cash in lawyers client account, a few hundred thousand euro. The reason I mention this is that there's no risk of the estate running short of cash to prevent payment to other beneficiaries, paying fees etc.

Obviously it is simpler to leave everything until a single point in time and pay all fees/beneficiaries at that time, and the lawyer may prefer this - for a number of reasons. If I was to do this it would be with the knowledge of the other beneficiaries of the estate, so nothing underhand.

I am trying to understand if this is something that can be done by law, or is not done by convention etc, before I chat to the lawyer about this.
 
Has probate been granted?

If so, I presume you can. For example, cash could be distributed before a property is sold.

If not, no you can't.

Brendan
 
I don't see any reason why not but I am not a lawyer.

I have acted as Executor twice and got rid of the specific amounts first and as soon as probate was granted.

Brendan
 
As the executor you can start to distribute the estate once you have the grant of probate. If you are a child of the deceased and you give one sibling €50K now but the other siblings nothing it might be odd, but if you gave them all€50K each now it may look better all around.

There is nothing you can do about their CAT threshold, they are either over or under depending on their individual circumstances, so this should not be taken into account by you. Remember as the executor the solicitor is acting on your instructions. He will probably point out pitfalls and advantages of any course of action which would be prudent of him.
 
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