Ideally, no distributions to the beneficiaries under the will should be make until the estate is closed and closing letters received from the Internal Revenue Service and the State Tax Commission if estate tax returns were filed. This is not always possible, particularly in light of the fact that it generally takes a minimum of nine months to get a closing letter from the IRS. Beneficiaries are usually not that patient. The earliest an executor can close an estate is after the time to probate claims has expired and no claims have been probated. This is generally possible in estates that dont require estate tax returns, particularly when surviving spouse is the sole beneficiary.
After the time for probating claims against the estate has expired and estate taxes have been paid, a partial distribution to the beneficiaries may be in order, particularly if there are no unpaid claims outstanding against the estate and the closing attorney is comfortable that the estate tax return will be accepted by the IRS as filed. In any event the executor and closing attorney should hold back enough cash from the distribution to pay for the remaining expenses of administration and to pay for any estate taxes that may be assessed by the IRS.
The South Dakota Petition for Partial and Early Distribution of Estate is a legal document that allows an interested party, typically a beneficiary or personal representative, to request a portion of the estate be distributed before the probate process is completed. This petition can be useful in situations where there is an immediate need for funds or assets to be distributed, such as paying off debts, covering medical expenses, or addressing other urgent financial matters. The process of filing a South Dakota Petition for Partial and Early Distribution of Estate begins with completing the necessary forms, which may vary depending on the specific circumstances. Some common types of petitions in this category include: 1. Petition for Partial Distribution to Service Creditors: This type of petition is filed when there are outstanding debts that need to be satisfied promptly. It allows for the payment of creditors from the estate's assets, ensuring that financial obligations are fulfilled in a timely manner. 2. Petition for Partial Distribution for Funeral and Burial Expenses: In cases where the deceased individual has left behind unpaid funeral or burial costs, this petition can be used to request early distribution of estate funds to cover these expenses. It alleviates the burden on the family to come up with immediate funds for honoring their loved one's final arrangements. 3. Petition for Partial Distribution for Family Maintenance Allowance: Under South Dakota law, a surviving spouse and minor children are entitled to a family maintenance allowance, which covers basic living expenses for a specific period after the decedent's death. By filing this petition, the surviving spouse or guardian can request an early distribution of estate assets to fulfill this entitlement. 4. Petition for Partial Distribution for Estate Taxes: This type of petition addresses the payment of estate taxes owed to the Internal Revenue Service (IRS). By filing this petition, the personal representative can request the release of a portion of the estate's assets to cover these tax obligations and prevent any penalties or interest from accruing. When filing a South Dakota Petition for Partial and Early Distribution of Estate, it is crucial to follow the specific guidelines and procedures outlined by the state's probate court. Consulting an experienced attorney can help ensure that the petition is prepared accurately, using the appropriate forms and language, and increases the chances of a successful outcome.
