Can an inheritance be paid out in installments?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can an inheritance be paid out in installments?
We are at the point of “final disbursement” of my mother’s estate to 4 surviving adult children. Approximately $40,000 total will be divided evenly providing $10,000 per heir. One of the surviving adult children has limited income and is receiving rental subsidies in low-income housing. If the full $10,000 is disbursed to this person this year it will impact their subsidy. Is it possible for the Executor (brother) to simply disburse the $10,000 in 2 or 3 payments, 1 per year for 2 or 3 years? Are there any special provision that needs to be set up or do just need to show that the accounting has been done properly? This seems like a simple workable solution.
Asked on October 27, 2012 under Estate Planning, Florida
Answers:
MD, Member, California Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
It does not need to be paid out altogether but your brother as executor should consider whether a trust could be created for one sibling wherein disbursements can only be accessed tax free one time a year for a limited amount. The executor could simply disburse over a time period but make sure the accountings are accurate for the estate and the sibling beneficiary because otherwise it could have negative tax implications.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.