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Home >> Special Situations >> Deceased Individuals
Early Inheritance
If an heir needs access to the inheritance early, should a check be written out of the deceased's account or is the issuance of a cashier's check safer? The others involved want to be sure that the receiver of this payment can't come back later and say he wasn't paid. They want to make sure they have proof.
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 When you refer to "the deceased's account," we presume you mean the account of the decedent's estate, because that's from where any payment should come. Once that account is established, or taken over by the estate, if the account once held by the decedent is converted to the ownership of the estate, it's probably preferable to pay any funds out using a check from the account rather than a cashier's check. In that way, the estate will have direct documentation of payment rather than having to go to the bank to get a copy of the cashed cashier's check.
Just be very aware that state laws will govern who is able to disburse which funds from the estate, and, more importantly, when. It may be that the probate court will permit an early payment, but don't forget that there may be creditors looking for a piece of the estate, and their claim, for taxes or debts owed, etc., is almost always superior to those of the family who are named as beneficiaries. The language of a Will usually calls first for the payment of legal obligations of the decedent and the remainder gets distributed to heirs. Whether or not the Will recites things that way, the law will provide for precedence of payment.
Published on BankingQuestions.com 8/18/08
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