What’s the Next Step in Probate Administration After Liquidating Stock Holding?
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Question:
My deceased brother had $100,000 in UPS stock. As the administrator of his estate, I liquidated the stock and placed the proceeds in an account for distribution to the heirs. What would be the next steps?
Response:
If all the estate bills have been paid, simply to distribute the funds to the heirs. You may want to hold back a small “closing reserve” to cover any anticipated or unanticipated future expenses that may come up, such as paying an accountant to prepare a tax return for the estate. Once all such bills have been paid, you can then disburse any funds still remaining in the closing reserve.
We also generally ask those receiving distributions to sign a receipt and release indicating that they have received the funds and have no further claim on the estate. But the reality is that they are entitled to the distribution whether or not they sign the release and the cleared check is sufficient proof that they received it. It’s just that we and our clients feel a bit better having received the release.
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