Detailed Answer

When all taxes, creditor claims, and estate administration expenses are paid, distributing the remaining funds to the decedent’s children in Delaware follows a predictable legal and procedural path. Below is a clear, step-by-step explanation of how that distribution normally works, what documents and filings are needed, and where Delaware law controls the process.

Step 1 — Confirm who takes: will vs. intestacy

First, determine whether the decedent left a valid will. If there is a valid will, the will controls who receives the residual estate (the money and property left after specific gifts, taxes, and expenses). If there is no will (intestate), Delaware’s statutes in Title 12 of the Delaware Code govern who inherits. For practical purposes: if the decedent’s heirs are the children, they are typically the primary beneficiaries under Delaware intestacy rules.

Step 2 — Personal representative authority and final accounting

The personal representative (executor named in the will or an administrator appointed by the court) must complete administration tasks before distribution. These typically include:

Inventorying all estate assets;
Notifying known creditors and publishing required notices;
Collecting assets and resolving outstanding claims;
Paying or reserving for taxes (federal and any state tax issues) and administration expenses;
Preparing a final accounting that shows money in and out and the balance available for distribution.

The Register of Wills or the probate court may require the representative to file a final account and obtain court approval (depending on whether the estate is supervised or unsupervised). See the Delaware Register of Wills for local filing procedures and forms: courts.delaware.gov/register-of-wills.

Step 3 — Calculate the distributable estate

From the estate’s total assets subtract:

Valid creditor claims;
Administration costs (attorney, executor fees if allowed, appraisal, funeral expenses, etc.);
Taxes (federal estate tax if applicable; state tax and final income taxes). If tax liabilities remain uncertain, the personal representative may set aside a reserve or obtain a tax clearance from state and federal agencies before distributing.

The result is the distributable balance.

Step 4 — Follow the will or statutes for division among children

– If the will specifies distribution to the children, follow the will’s directions exactly (e.g., equal shares, specific shares to particular children, or a trust for children).
– If no will exists, Delaware law under Title 12 determines inheritance. In most intestacy situations where the decedent’s children are the decedent’s only descendants, the distributable estate passes to those children. The method of distribution (equal shares, representation for predeceased children, etc.) is governed by the statutes and by established probate practice.

Step 5 — Obtain releases and receipts

Before making distributions, the personal representative typically asks beneficiaries to sign receipts or releases. These documents acknowledge the beneficiaries received their share and protect the personal representative from future claims. If the estate is supervised by the court, the court may require formal receipts or release filings.

Step 6 — Make distributions and close the estate

After distributing the funds in accordance with the will or intestacy rules, the personal representative files final accountings and receipts with the Register of Wills or probate court (if required). The representative then petitions for discharge or final order closing the estate. Once discharged, the representative is usually relieved of further liability for estate matters (subject to any reservations specified in the court order).

Practical and procedural points under Delaware law

Supervised vs. unsupervised administration: Delaware permits both. Supervised estates involve more court steps and approvals; unsupervised estates are often quicker but still require notification and record keeping. See the Register of Wills for county-specific practice: Delaware Register of Wills.
Estate and inheritance taxes: Delaware’s state tax rules and possible federal estate tax obligations can affect the distributable amount. Consult the Delaware Division of Revenue and the IRS for tax filing and payment requirements: revenue.delaware.gov and irs.gov/estate-and-gift-taxes.
Minor children and special circumstances: If a child is a minor, incapacitated, or under a guardianship, distribution may require a guardianship, trust, or court supervision to protect that child’s share.
Predeceased child with descendants: When a child predeceased the decedent but left children of their own, rules in Title 12 and probate practice determine whether those grandchildren step into the deceased child’s share (representation). For details, consult Title 12: Delaware Code, Title 12.

When you should get a lawyer

Consider hiring an attorney if you face any of these situations: disputed wills, creditor lawsuits, complex tax issues, children with special needs, assets in multiple states, or when the estate is supervised and court approval of distributions is required. An attorney helps ensure compliance with Delaware statutory rules and can prepare and file final accountings and petitions to close the estate.

Helpful Hints

Locate the will and death certificate immediately. The will determines distribution if valid.
Keep detailed records of every transaction — deposits, disbursements, bills paid, and communications with beneficiaries.
Publish required creditor notices and handle claims promptly to avoid future liability.
Obtain written receipts from children/beneficiaries when you distribute funds.
When in doubt about tax exposure, obtain a tax clearance or set aside reserves until tax obligations are confirmed.
Check the Delaware Register of Wills website for county forms, filing fees, and local practice: courts.delaware.gov/register-of-wills.
If a child is a minor or incapacitated, delay outright distribution until you have a lawful plan (guardianship, trust, or court order).

Disclaimer: This article explains general Delaware probate practice and law. It is educational only and not legal advice. For guidance about a specific estate or disputed matter, consult a licensed Delaware attorney.