OT: Question on disbursing funds from an estate account.

[DJ Spanky]

I'm doing a disbursement to my brothers from my mom's estate - does it matter what type of check I use? In other words, can I just send a check from the estate account or should I use a certified or bank check? Thanks!

 

[MCY]

I'm doing a disbursement to my brothers from my mom's estate - does it matter what type of check I use? In other words, can I just send a check from the estate account or should I use a certified or bank check? Thanks!

Regular check should be fine. Just wrapping up liquidating an estate and that is what I did.

 

[CharlieCPA]

I'm doing a disbursement to my brothers from my mom's estate - does it matter what type of check I use? In other words, can I just send a check from the estate account or should I use a certified or bank check? Thanks!

A regular check from the estate account will work just fine.

 

[mdk01]

Regular check.

 

[Ole Cabbagehead]

I'm doing a disbursement to my brothers from my mom's estate - does it matter what type of check I use? In other words, can I just send a check from the estate account or should I use a certified or bank check? Thanks!

You should use the check book issued for the estate account. No need for guaranteed funds. They will just call you if they bounce!

The more important thing is that you should really have all beneficiaries sign a document known as a "waiver, release and refunding bond". You may think you don't need it, but you should know that if certain things are screwed up, the executor can be liable. To guard against that, he beneficiaries typically sign a document waiving any potential claims, releasing the executor from any liability, and agreeing to refund any assets received from the estate in the event a creditor surfaces later on.

 

[CharlieCPA]

You should use the check book issued for the estate account. No need for guaranteed funds. They will just call you if they bounce!

The more important thing is that you should really have all beneficiaries sign a document known as a "waiver, release and refunding bond". You may think you don't need it, but you should know that if certain things are screwed up, the executor can be liable. To guard against that, he beneficiaries typically sign a document waiving any potential claims, releasing the executor from any liability, and agreeing to refund any assets received from the estate in the event a creditor surfaces later on.

Excellent idea!

 

[suggakane]

You should use the check book issued for the estate account. No need for guaranteed funds. They will just call you if they bounce!

The more important thing is that you should really have all beneficiaries sign a document known as a "waiver, release and refunding bond". You may think you don't need it, but you should know that if certain things are screwed up, the executor can be liable. To guard against that, he beneficiaries typically sign a document waiving any potential claims, releasing the executor from any liability, and agreeing to refund any assets received from the estate in the event a creditor surfaces later on.

exactly what I did with my fathers estate.

 

[_dave_]

I'm doing a disbursement to my brothers from my mom's estate - does it matter what type of check I use? In other words, can I just send a check from the estate account or should I use a certified or bank check? Thanks!

Just in case, you should test it out by sending me a check for the balance of the fund. If it goes through then you should go ahead and disburse to your brothers.

 

[Ole Cabbagehead]

exactly what I did with my fathers estate.

Good job. There are more pitfalls than people think. Executor can even be held personally liable to a creditor he didn't know about. People always assume because they aren't worried about family suing them they are in the clear, but its not always the case.

 

[DHajekRC84]

You should use the check book issued for the estate account. No need for guaranteed funds. They will just call you if they bounce!

The more important thing is that you should really have all beneficiaries sign a document known as a "waiver, release and refunding bond". You may think you don't need it, but you should know that if certain things are screwed up, the executor can be liable. To guard against that, he beneficiaries typically sign a document waiving any potential claims, releasing the executor from any liability, and agreeing to refund any assets received from the estate in the event a creditor surfaces later on.

not only that but you are required to show each of them how the funds were allocated in a formal or informal way. These release form also serves to document that. In Middlesex county (where my Aunt's estate was probated) I believe you are actually required to file these forms with the County Surrogate along with the Tax Liability release form from the State after they get their cut and say ok to let everyone else get theirs.