Can an executor advance money to beneficiaries?

Asked by: Moises Konopelski DVM  |  Last update: March 14, 2025
Score: 4.3/5 (24 votes)

In many cases of estate administration, the executor or administrator or preliminary appointee may voluntarily make an advance distribution to a person who is in need. This tends to be a common occurrence when all of the interested parties are cooperative and there is no contentious estate litigation occurring.

How long can an executor advance money to beneficiaries?

There's no standard deadline for paying beneficiaries of a will, but estates complete the probate process in six to nine months on average. Probate laws vary by state, and many states don't set a deadline at all for executors to pay the beneficiaries of a will.

Can an executor take beneficiary money?

However, an executor cannot withhold money simply at their own discretion or for personal reasons. Executors have a fiduciary duty to act in the best interests of the estate and its beneficiaries, so any withholding must be justifiable and transparent.

Can an executor withdraw money?

There is no law that prohibits an executor from asking the bank for the money. The executor's get their legal authority from being named in the will, not from probate. It is not illegal for the executor to ask the bank for the money, but there is no legal obligation on the bank to provide it prior to probate.

Who has more power, a beneficiary or executor?

While beneficiaries can often disagree with an executor's decisions, unless the executor clearly violates the terms of the will or breaches their fiduciary duty, there is typically nothing a beneficiary can do about it.

Can an executor withhold money from a beneficiary?

22 related questions found

Can executor screw over beneficiary?

Executors are bound to the terms of the will, which means they are not permitted to change beneficiaries. The beneficiaries who were named by the decedent will remain beneficiaries so long as the portions of the will in which they appear are not invalidated through a successful will contest.

How long can an executor withhold money from a beneficiary?

Q: Can an Executor Withhold Money From a Beneficiary in California? A: Executors do not have the authority to act outside the guidelines stipulated in the will. An executor cannot withhold money from a beneficiary unless they are directed to do so through a will or another court-enforceable document.

Can executor borrow money from estate?

If the money is intended for the executor's personal use, the answer is a very firm “no!” That would be a breach of the executor's fiduciary duty and should be grounds for the executor being removed by the court.

How long can an executor take to settle an estate?

In California, executors are generally expected to finalize probate proceedings within one year of their appointment. However, if a federal estate tax return is necessary, the law extends this timeframe to 18 months, allowing additional time to adequately manage and settle the estate's affairs.

Can an executor distribute funds?

No, an executor cannot decide who inherits from your will. Their job is to follow your wishes and distribute your estate to the beneficiaries according to the terms of your will. Executors manage the assets, pay debts, and keep records, but ultimately act as a facilitator to ensure your will is carried out.

Can an executor challenge a beneficiary?

Legally, an executor may overrule beneficiaries when required by court orders; however, beneficiaries have the right to challenge executor decisions if they believe he/she is violating will stipulations, providing checks and balances during estate administration.

Can an executor decide who gets what?

While executors have discretion in some areas, your core decision-making is bounded by: The deceased's will. You must follow their distribution wishes rather than diverging based on your own judgments.

How much does it cost to change executors on a will?

Lawyers can charge a wide range of fees, but it's pretty common for the cost to be anywhere between $100 - $500.

Can an executor keep all the money?

An executor of a will cannot take everything unless they are the will's sole beneficiary. An executor is a fiduciary to the estate beneficiaries, not necessarily a beneficiary. Serving as an executor only entitles someone to receive an executor fee.

How do beneficiaries receive their money from a will?

If there is a will, it's submitted to the probate court, where it is reviewed. After that, the court will typically authorize the executor of the will to transfer the assets to the beneficiaries as stated in the will.

Does an executor have to show accounting to beneficiaries?

As an executor, you must provide a formal accounting at least once a year, but beneficiaries can request an informal probate accounting in California at any time. When they do, you must produce it.

Can an executor give advance money to beneficiaries?

Yes. My experience has been that you must give every beneficiary the same amount of advance. Yes, they MUST sign the Receipt, Release and Indemnity.

Can you sue an executor for taking too long?

If the executor fails to meet their legal obligations, a beneficiary can sue them for breach of fiduciary duty. If there are multiple beneficiaries, all must agree on whether to sue an executor.

How much power does an executor of a will have?

While California law grants executors considerable authority in managing estate assets, the powers of an executor of a will are limited by the fiduciary duties owed to the estate and its beneficiaries. This means that executors are legally required to act in the best interests of the estate and its beneficiaries.

Can executor withdraw money?

In the absence of probate, financial institutions often have stringent policies to prevent unauthorized access to funds. It's important to note that executors may still be able to access funds from the deceased's account for immediate and necessary expenses.

What can an executor pay themselves?

California has one of the most detailed schemes, which provides that the executor fee is four percent of the first $100,000 of the estate, three percent of the next $100,000, two percent of the next $800,000, one percent on the next $9 million, one-half of one percent on the next $15 million, and a “reasonable amount" ...

Does executor become responsible for debt?

The answer is basically that your debts become your estate's responsibility when you die. The executor you name in your will becomes responsible for settling your estate, which includes settling your debts. Keep good records of your assets and debts so your executor will have an easier time handling them when you die.

Can a beneficiary override an executor?

Technically, yes, but it's not easy. Beneficiaries need strong grounds, such as the executor not following the will or aren't capable of performing duties to override them. Otherwise, it is generally impossible to override an executor, as they have more authority in estate matters.

Who holds an executor accountable?

Executors who violate their duty may face legal action by beneficiaries or creditors, although they cannot be held accountable for a decline in asset value unless it resulted from their unreasonable actions.

Can an executor withdraw money from deceased bank account?

An executor/administrator of an estate can only withdraw money from a deceased person's bank account if the account does not have a designated beneficiary or joint owner and is not being disposed of by the deceased person's trust.