Short answer

After the estate pays administration costs, taxes, and valid creditor claims, the personal representative (executor/administrator) either follows the decedent’s will or, if there is no valid will, distributes the remaining assets to heirs under North Dakota intestacy rules. When the decedent’s children are the heirs, the estate generally passes to them (or to their descendants by representation) in shares determined by the probate court and North Dakota law. The personal representative must first obtain court approval (or follow small‑estate procedures, when available) before making final distributions.

Detailed answer — step‑by‑step process under North Dakota law

1. Confirm the legal framework

Decide whether the estate is being administered under a will (testate) or without a will (intestate). If there is a will, the personal representative must follow its plain terms, subject to court supervision and any applicable claims or family allowances. If there is no will, North Dakota intestacy rules apply. You can review North Dakota probate statutes at the North Dakota Century Code, Title 30.1 (Estates and Trusts): https://www.legis.nd.gov/cencode/titles/title-30-1.

2. Gather assets, value the estate, and maintain records

The personal representative collects the decedent’s assets, prepares an inventory and appraisement if the court requires it, and places funds in an estate account. Keep clear, dated records of receipts, payments, and asset valuations. These records support the final accounting the court will review before distribution.

3. Provide notice and resolve creditor claims

The personal representative must give notice to known creditors and publish notice to unknown creditors as required by North Dakota probate rules. Known valid claims and allowed expenses are paid from estate funds in priority order. Only creditors with allowed claims may be paid by the estate. The court supervises or reviews claim handling in a formal administration.

4. Pay taxes and administrative expenses

Pay any federal estate tax, income tax, and any state taxes owed by the estate, plus administration costs (attorney fees if approved, court costs, appraisal fees, funeral expenses, and other allowed expenses). Consult the IRS for federal estate tax guidance: https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax. For state tax questions, check the North Dakota Office of State Tax Commissioner.

5. Determine the distributable estate (the residue)

After paying taxes, claims, and administrative expenses, the remaining property is the residuary estate. This is what will be distributed to beneficiaries under the will or to heirs under intestacy.

6. Apply the will or intestacy rules

If a valid will names the children as beneficiaries or gives the residue to them, distribute according to the will (subject to court review). If there is no will, North Dakota intestacy rules determine shares. Generally:

• If the decedent is survived only by children (and no spouse), the residuary estate is divided among those children.
• If a child predeceased the decedent but left descendants (grandchildren of the decedent), those descendants typically take that child’s share by representation (often called per stirpes distribution) so the branch receives the deceased child’s portion.

Because probate distribution rules and family allowances can be technical, review the relevant North Dakota probate statutes at the link above or consult a North Dakota probate attorney to confirm shares and representation rules.

7. Secure court approval or follow small‑estate procedures

In a formal probate, the personal representative files a final accounting and petition for distribution. The court reviews the account, may hold a hearing, and issues an order approving distribution. For small estates, North Dakota provides simplified transfer options in certain circumstances; these can allow heirs to obtain assets without full probate. See local court forms and the North Dakota courts website for self‑help probate information: https://www.ndcourts.gov/.

8. Transfer assets to children

Once the court approves distribution (or a small‑estate procedure allows transfer), the personal representative distributes assets. Typical actions include:

• Issuing estate‑checks payable to each child or directly transferring funds to heirs’ bank accounts.
• Preparing and recording deeds to transfer real property titles to heirs (deeds must follow local recording requirements).
• Transferring stocks, bonds, and accounts using transfer forms, affidavits, or letters testamentary/administration issued by the court.
• If a beneficiary is a minor or incapacitated, creating a guardian/conservatorship or placing funds in a court‑approved guardianship, custodial account, or testamentary trust until the child reaches majority or as directed by the will or court.

9. Close the estate

After the distributions, the personal representative files a final report or account showing how funds were handled and proving assets were distributed according to the court order or applicable small‑estate procedure. The court then discharges the personal representative.

Example

Hypothetical: A parent dies in North Dakota leaving three children and no spouse. The estate, after paying validated claims, taxes, and expenses, has $120,000 in the residuary. Under the will (if the will leaves the residue to the children) or under intestacy rules (if there is no will), each child would normally receive $40,000 (one‑third) unless a child predeceased the parent. If one child predeceased but left two children, those two grandchildren would share that deceased child’s $40,000 (typically $20,000 each) by representation.

When distribution can be complicated

Common complications include:

• Disputed creditor claims or creditor litigation.
• Competing heirs or will contests.
• Assets that require special transfer procedures (retirement accounts, jointly held property, life insurance with designated beneficiaries).
• Minors, incapacitated heirs, or heirs who live out of state or overseas.

When complications exist, the personal representative should not distribute assets until the court approves the final accounting or until the representative has appropriate releases or waivers from interested parties.

Helpful hints

• Keep detailed records: receipts, invoices, bank statements, and a full inventory of assets help the final accounting and reduce dispute risk.
• Communicate early with heirs: explain the timetable, what must be paid first, and likely timing for distributions.
• Get tax clearance or advice: determine whether federal estate tax, estate income tax, or state tax obligations apply before distribution.
• Use the probate court’s guidance: courts often provide forms and checklists for final accounting and distribution—visit the North Dakota Courts site: https://www.ndcourts.gov/.
• Consider small‑estate procedures for modest estates: North Dakota law may allow simplified transfers that avoid full probate in some cases; check the statutes and court rules.
• When heirs include minors or persons with disabilities, consider a trust, guardianship, or court‑approved custodial account to protect funds and comply with legal requirements.
• Consult a North Dakota probate attorney for complex situations: contested claims, unclear title to assets, family disputes, or potential tax problems.