/>iAs a beneficiary of an estate, you may be expecting to receive your inheritance in a timely fashion. Unfortunately, the process to properly administer an estate prior to distributions being made by an executor might take a substantial period of time. Often, the question begs what constitutes a “reasonable” period of time to receive a distribution, and further, what is the executor’s duty concerning the timing of administering an estate? Fortunately, there are two statutes that provide some guidance as to when a beneficiary can expect to receive their distribution from an estate.
In general, the duty of an executor to administer an estate is defined by N.J.S.A 3B:10-23. This statute provides in broad terms that an executor must administer and distribute an estate as expeditiously and efficiently as possible in a fashion that is consistent with the best interests of the estate. Obviously, that is a vague definition that is capable of various interpretations, and which depends entirely upon the nature of the Estate. Some estates may be relatively simply to administer and distribute whereas others can be extremely complex and require great effort to complete the process. The legislature understood the differences between simple and complex states, and hence, that is why there is broad and general statutory language.
One other statute that may provide some guidance, however, concerns an executor’s duty to account. The relevant New Jersey statute, N.J.S.A. 3B:17-2, provides that unless for special cause shown, an executor is not required to account until after the expiration of 1 year after their appointment. This statute references the executor’s duty to provide an accurate representation of the assets of liabilities of the estate to the beneficiaries of the estate. In general, no distributions can be made from an estate until such time as an accounting is prepared by an executor. As such, an executor could stretch this time period out for up to a year should they chose, however, it is hopeful that the completion of an accounting could occur prior to that time. Once the accounting is complete the executor should be a in a position to commence making at least some partial distributions.
When these two statutes are read in conjunction it is fair to reach the conclusion, that in general, distributions from an estate should commence either prior to one year after the executor is appointed or shortly thereafter. This is assuming that there is no litigation which involves the estate which could extend this time period, or perhaps, an audit from the IRS which could also affect the timetable, as well as other issues related to pending debt or liabilities that need to be resolved. Once again, although the duty to account must be completed prior to one year, the timing of the first distributions and final distributions could take longer depending upon the complexity of the estate.
If you are a beneficiary of an estate and more than a year has passed since the executor’s appointment and if you have not been provided any information, then in that event, it is suggested that you consult with competent legal counsel to explore your options. Those options might involve filing suit, or simply pushing the executor along to complete his/her duties. Whatever the decision, at times legal counsel is needed in order to move the process along.
