The decree of distribution is a final order issued by a court of law in the context of a probate case. It is the court’s official ruling concerning the distribution of property from an estate following the death of the estate owner. In essence, it determines how the estate will be divided among the heirs or beneficiaries.
Breaking Down the Decree of Distribution
Under the decree of distribution, assets are categorised into separate divisions such as marital property, separate property, survivorship property, real estate, contents of safe deposit boxes and the like. Once the property is separated, each heir or beneficiary is entitled to a specific share based on the estate plan and the state law of the state in which the distribution takes place.
The executor’s job is to re-title the assets listed in the decree of distribution in the name of the respective beneficiaries. Banks must be informed and any necessary changes of ownership must be filed with the clerk of court.
Processing a Decree of Distribution
When a court issues a decree of distribution, it ensures that the wishes of the estate owner are honored. In some cases, this may mean that the distribution of assets among the heirs is in accordance with the will. In other cases, it may mean distributing the assets according to the state law of intestacy, which outlines the process for determining the rightful beneficiaries of an estate.
It’s important to note that the distribution of assets does not take place automatically. The executor of the estate must identify and appraise the assets, can contest any non-binding or disputed clauses in the will, and must establish the right of each heir or beneficiary to receive a share of the estate. After these steps are taken, the court can issue the decree of distribution.
The Effect of the Decree of Distribution
The effect of the decree of distribution is to officially pass ownership of the various assets in the estate from the estate owner to the beneficiaries or heirs. Once the decree is issued, it becomes a public record and the named beneficiaries can take action to secure their share of the estate. It also provides finality for the estate and allows the executor to close the estate.