How Missouri Estates Distribute Remaining Funds to the Decedent’s Children After Taxes, Claims, and Expenses Are Settled

This FAQ explains, in plain language, how the remaining money in an estate is distributed to a decedent’s children under Missouri law after the estate pays taxes, creditor claims, and administration expenses. This is a general overview only and is not legal advice.

Detailed answer — step-by-step process

1. Who controls distribution: the personal representative (executor/administrator)

The person appointed by the probate court to manage the estate — commonly called a personal representative, executor (if named in a will), or administrator (if no will) — is responsible for finishing the estate administration and distributing remaining assets to beneficiaries. The personal representative acts under court supervision and must follow the will’s instructions when there is one, or Missouri’s intestacy rules when there is no valid will (see Missouri statutes on probate and descent and distribution listed below).

2. Confirm all claims, taxes, and expenses are resolved

Before any distribution, the estate must pay valid creditor claims, funeral costs, administration expenses, and any required taxes. That typically includes:

• Notifying creditors and allowing the statutory claim period to run;
• Paying outstanding bills and creditor claims that the personal representative determines are valid or approved by the court;
• Filing and paying final income tax returns for the decedent (and for the estate if required) and filing any federal estate tax return if the estate meets federal filing thresholds;
• Paying the costs of administration (attorney fees, bond premiums if required, appraisal fees, court costs, etc.).

Only after these obligations are satisfied (or properly reserved for) does the estate move to distribution.

3. Final accounting and petition for distribution

The personal representative generally prepares a final accounting showing receipts, payments, and remaining assets. The representative files a petition for distribution (sometimes called a petition for final settlement) asking the probate court to approve the accounting and authorize distribution of remaining assets. The court may require notice to heirs, beneficiaries, and creditors and may set a hearing.

4. Distribution follows the will or Missouri intestacy law

If the decedent left a valid will, distribution follows the will’s terms unless a court modifies the distribution for legal reasons. If there is no will, Missouri’s statutes govern how the estate passes to heirs. See Missouri rules on descent and distribution here: Mo. Rev. Stat. Chapter 474 — Descent and Distribution. For probate and administration procedure, see: Mo. Rev. Stat. Chapter 473.

5. How children typically share the estate

When children are the beneficiaries, their shares depend on the will language or, if intestate, on the statutory distribution scheme. Key points to understand:

• If a will specifies exact shares for each child, the personal representative pays each child according to the will.
• Under intestacy statutes, the estate is divided among heirs according to the relationships defined by statute. Where children inherit under intestacy, the estate typically passes to the decedent’s children (and descendants of any deceased child) in shares determined by Missouri law. See Chapter 474 linked above for the statutory rules that apply to your situation.
• If a child predeceased the decedent but left children (the decedent’s grandchildren), those grandchildren usually take the deceased child’s share by representation (commonly called “per stirpes” distribution). The exact method depends on the statute and the family facts.

6. Practical steps to complete distribution

1. Obtain a court order approving the final accounting and authorizing distribution (the probate court usually issues a formal order or decree).
2. Prepare distribution documents: checks, deeds, stock transfers, or assignment forms. For real property, a deed signed by the personal representative (often in the form ordered by the court) is recorded in the county where the property is located.
3. Collect signed receipts and releases from beneficiaries when they accept their share to protect the personal representative from future claims.
4. If a beneficiary is a minor or incapacitated, the court may require appointment of a guardian or conservator or require that the funds be paid into a blocked account or to a custodian under the Uniform Transfers to Minors Act until the child reaches majority.
5. File a final report and petition for discharge with the probate court to close the estate and secure the personal representative’s release from further liability.

7. Special situations to watch for

• If the estate owns jointly held property or has beneficiary designations (life insurance, retirement accounts), those assets may pass outside probate to named survivors and not be part of the probate distribution. The personal representative will not be able to distribute those assets unless they are part of the probate estate.
• If assets are insufficient to pay all debts, the personal representative follows statutory priority rules to pay claims and distributions may be reduced or eliminated.
• If a child disputes the accounting, claims undue influence, or contends the will is invalid, distribution can be delayed pending resolution of contested issues in court.

Helpful Hints

• Keep detailed records. Receipts, invoices, bank statements, and the estate accounting are crucial for court approval and to avoid personal liability.
• Give timely notice. Follow Missouri rules for creditor notice and notice to heirs and beneficiaries — failing to provide required notice can delay distribution and create legal exposure.
• Confirm beneficiary status and family relationships. If a child has predeceased the decedent, document any surviving descendants to determine share allocations under Missouri law.
• Check non‑probate assets. Review beneficiary designations on retirement accounts, life insurance policies, joint tenancy deeds, and payable‑on‑death accounts before distributing probate assets.
• If a beneficiary is a minor, expect extra steps. The court often requires a guardian/conservator or court‑approved trust arrangement to protect the minor’s share.
• Consider tax filings early. Coordinate with an accountant about final income tax returns and any required estate tax filing (federal) so there are no surprises before distribution.
• Get court approval before distributing. Even if beneficiaries agree, a court order or written beneficiary receipts reduce the risk of later claims against the personal representative.

Where to read the law and find court forms

Key Missouri statutes and resources:

• Descent and Distribution (Missouri Revised Statutes, Chapter 474): https://revisor.mo.gov/main/OneChapter.aspx?chapter=474
• Probate and administration procedures (Missouri Revised Statutes, Chapter 473): https://revisor.mo.gov/main/OneChapter.aspx?chapter=473
• Missouri Courts — probate information and local forms (varies by county): visit the Missouri Courts website for probate resources specific to your county: https://www.courts.mo.gov

When to get a lawyer

You should consider hiring a probate attorney if the estate is large, the family situation is complex, property titles must be cleared or transferred, there are disputes among heirs, tax issues arise, or you want help preparing the final accounting and court papers. An attorney can help ensure distributions comply with Missouri law and reduce personal exposure for the personal representative.

Disclaimer: This article is informational only and does not constitute legal advice. For guidance specific to your situation, consult a licensed Missouri attorney.