Detailed Answer

Disclaimer: This is general information, not legal advice. I am not a lawyer. For advice about a specific estate, consult a New York-licensed attorney or the Surrogate’s Court.

Overview — what happens before distribution

Before any remaining estate funds can go to the decedent’s children, the personal representative (called an executor if there is a will, or an administrator if appointed by the court) must complete a set of tasks required by New York law. These tasks protect the representative from personal liability and ensure the distribution is lawful and final.

Step-by-step process under New York law

1. Appointment of the personal representative.

   If the decedent left a valid will, the executor named in the will seeks letters testamentary from the Surrogate’s Court. If there is no will, a close relative petitions for letters of administration. The Surrogate’s Court oversees estate administration under the Surrogate’s Court Procedure Act (SCPA) and the Estates, Powers & Trusts Law (EPTL). See SCPA and EPTL for the statutory framework: SCPA (New York), EPTL (New York).

2. Inventory and notice to creditors.

   The representative locates assets, prepares an inventory, and gives notice to known creditors and, in many cases, provides public notice so unknown creditors can present claims. The estate must reserve funds for valid claims and known expenses before distribution.

3. Pay administrative expenses, valid creditors, and taxes.

   The executor pays funeral costs, administrative expenses, attorney fees (if allowed), valid creditor claims, and required taxes (federal and New York). Where required, the estate files federal estate tax returns (IRS Form 706 when applicable: irs.gov Form 706) and New York estate tax returns or other state filings (see New York State Department of Taxation and Finance estate tax guidance: NY Dept. of Taxation & Finance — Estate Tax).

4. Resolve disputes and claims.

   If a claim or tax issue is disputed, the representative should seek court direction. The Surrogate’s Court can allow or disallow claims and resolve contested matters. Do not distribute estate funds while credible unresolved claims remain.

5. Prepare a proposed final accounting (if required).

   Many estates require the executor to prepare an accounting showing all receipts, disbursements, reserves, and the proposed distribution. The accounting may be submitted to the Surrogate’s Court and provided to interested parties for review. The court will settle the account if it is correct.

6. Obtain court approval or follow the will’s directions.

   If the estate was administered informally and beneficiaries agree, distributions can often proceed after claims and tax obligations are addressed. For many estates, the executor will obtain a court order or a decree of distribution before transferring major assets or large sums. Where there is a valid will, distributions follow the will’s terms once debts and taxes are paid and the court issues the necessary letters or decree.

7. Special rules for minors and incapacitated beneficiaries.

   If a child beneficiary is a minor or legally incapacitated, the Surrogate’s Court often requires protections before funds are released. Typical options include appointing a guardian or conservator, creating a trust for the child, or depositing funds into a blocked or restricted account under court supervision. Do not distribute directly to a minor without court approval or a guardian’s authority.

8. Prepare releases and make distributions.

   Once the court approves the accounting or the executor reasonably believes the estate’s obligations are satisfied, the executor pays the remaining funds to the children according to the will or New York intestacy law. If there is no will, distribution follows EPTL rules for intestacy (generally children take in equal shares, subject to representation if a child predeceased the decedent): see EPTL § 4-1.1 and related sections. Obtain signed receipts or releases from beneficiaries. Keep detailed records.

9. Close the estate in court (if required).

   After distribution, the executor files a final accounting or a petition to settle the account and obtain a discharge from the Surrogate’s Court. A court discharge or decree protects the executor from later claims.

How shares are calculated for children

If the decedent left a will, the will controls the shares. If the will gives the estate to “my children” without further direction, the children usually split the residue equally, but the will’s exact language matters.

If there is no will (intestate succession), New York’s Estates, Powers & Trusts Law governs distribution. Generally, surviving children inherit the decedent’s intestate share in equal parts, and descendants of a deceased child may take by representation under the statute. For the governing rules see EPTL Article 4: EPTL Article 4 (Intestate Succession). For precise application to a particular family, consult an attorney because representation and per stirpes/per capita calculations can change outcomes.

Common pitfalls to avoid

• Distributing before tax returns and creditor claims are resolved.
• Sending money directly to minor beneficiaries without court-approved protections.
• Failing to obtain receipts/releases or a court discharge for final distribution.
• Ignoring state and federal filing requirements — this can create personal liability for the representative.

Where to find the statutes and forms

• SCPA (Surrogate’s Court Procedure Act): https://www.nysenate.gov/legislation/laws/SCPA
• EPTL (Estates, Powers & Trusts Law): https://www.nysenate.gov/legislation/laws/EPTL
• New York State estate tax information and forms: https://www.tax.ny.gov/forms/estate.htm
• Federal estate tax (IRS Form 706): https://www.irs.gov/forms-pubs/about-form-706

Final takeaway

Distributing remaining estate funds to children in New York requires careful completion of administrative tasks: appointment of the representative, notice to creditors, payment of expenses and taxes, possible court accounting and approval, and careful handling where beneficiaries are minors or incapacitated. Follow EPTL and SCPA rules, obtain receipts or a court discharge, and when in doubt, consult a New York probate attorney to avoid personal liability.

Helpful Hints

• Keep complete records: bank statements, paid invoices, receipts, tax filings, and court papers.
• Do not distribute until you are confident (or the court has found) that creditor claims and taxes are resolved.
• If beneficiaries agree, a short written release signed by all adult beneficiaries can reduce later disputes — but a court discharge is stronger protection.
• For minors, ask the court about blocked accounts or appointing a trustee rather than paying funds directly.
• File any required estate tax returns early; unresolved tax audits can hold up distributions later.
• When the will’s language is unclear or family relationships are complex, get an attorney’s review before distribution.
• Use the Surrogate’s Court clerk’s office for local procedural guidance and required forms for accounting and final discharge.