Where's My Inheritance?

You have been named as a beneficiary in the estate plan of a family member who has recently passed away. You may have been wondering how long it will take for you to receive your inheritance.

The short answer: It depends.

The wheels of estate administration turn slowly and there are a number of factors that affect how much time it will take before estate assets can be distributed to the beneficiaries. Distributing inheritances is among the last of the tasks of estate administration, as there are many other responsibilities that take priority. Only after all the probate requirements have been satisfied can the personal representative distribute the remaining assets (residue) to the beneficiaries.  In the world of estate administration, beneficiaries are at the back of the line, not the front.

If probate is not required (small estate value and no real property in the probate estate), the process may be resolved as quickly as within a few months. But if the estate is subject to the probate process, it may take a year or more for administration to be completed.

The personal representative must be appointed by the court and then must administer the estate: collecting and securing the estate property, determining asset values, contacting creditors and paying off all valid debts, filing and paying taxes, handling any disputes that may arise, and providing accountings to the court. All of this must be completed before any inheritances are distributed.

Other factors may complicate and lengthen the administration process. Dealing with the decedent's real property, business holdings, or out of state property, are just a few issues that can prolong the process. If anyone should contest the Will, that can drag out the administration, sometimes by several years.

Some estates may become insolvent, meaning that the assets are insufficient to pay debts and taxes, leaving nothing for the beneficiaries.

If you are counting on that inheritance from a family member, it is important to understand that the administration process takes time--a lot of time. Be patient, Grasshopper.