Detailed Answer
This explains how estate funds are distributed to a decedent’s children in Oregon after the estate’s taxes, creditor claims, and administrative expenses have been paid or otherwise resolved. This is an educational overview, not legal advice. For statute text on distribution and estate administration, see the Oregon Revised Statutes (ORS) on descent and distribution and on administration: ORS Chapter 113 and ORS Chapter 114. For practical probate information, see the Oregon Judicial Department’s probate pages: OJD — Probate.
Who controls distribution?
A personal representative (called an executor in some other states) controls the estate once appointed by the probate court. The representative collects assets, pays taxes and valid claims, and then makes the distribution to the beneficiaries in accordance with the decedent’s will. If there is no will, Oregon’s intestacy rules govern distribution to children and other heirs (see ORS Chapter 113 linked above).
Step-by-step process for distributing remaining funds to children
- Confirm appointment and authority. The court issues letters testamentary or letters of administration to the personal representative. That document is the authority to act for the estate.
- Complete claims and tax obligations. The representative must identify and pay valid creditor claims and file required tax returns (federal and Oregon). The estate must reserve funds for any pending or reasonably anticipated claims or taxes before distribution. Relevant probate rules and creditor notice procedures appear in ORS Chapter 114.
- Prepare a final accounting or proposed distribution schedule. The representative prepares an accounting showing all receipts, disbursements, fees, taxes, and remaining balance. The accounting is typically filed with the court and provided to beneficiaries.
- Resolve disputes or objections. Beneficiaries or creditors may object to the accounting or proposed distribution. The representative should wait for resolution of objections or the court’s clearance before distributing remaining assets.
- Follow the will or statute for shares. If a valid will exists, distribute according to its terms. If there is no will, distribute under Oregon’s intestacy rules. Generally, children share the estate; if a child predeceased the decedent but left descendants, those descendants typically take that child’s share by representation (see ORS Chapter 113).
- Handle minor or incapacitated beneficiaries properly. Money payable to children who are minors usually cannot be paid directly to them. The representative may: (a) deposit funds with the court under a guardian/conservator or blocked account order; (b) place funds in a custodial account under Oregon’s applicable custodial statutes; or (c) obtain court approval for another appropriate arrangement. Consult the court’s rules for required forms and procedures.
- Obtain court approval or written releases when appropriate. Many personal representatives obtain court approval of the final account and distribution, or obtain signed written releases from beneficiaries. Court approval or waivers reduce later exposure for claims against the representative.
- Make transfers and close the estate. After approval or lapse of objection opportunity, the representative distributes cash and transfers title to property as directed. Then the representative files a final accounting and a petition or notice to close the estate with the court to complete administration.
If a child predeceased the decedent
Oregon’s descent rules address representation of descendants when a child dies before the decedent. Typically, the deceased child’s descendants (the decedent’s grandchildren) take the share that child would have received, subject to ORS Chapter 113. Check the statutes for how representation and per stirpes distribution are applied: ORS Chapter 113.
Timing and common timeframes
Timing depends on the estate’s complexity and whether there are contested claims. Simple estates can distribute after a short period of creditor notice and tax filing; complex estates may take many months to more than a year. The representative should avoid premature distribution if there are unresolved creditor claims or tax issues.
Practical documents and steps the personal representative will use
- Letters testamentary or letters of administration issued by the probate court.
- Inventory and appraisal of estate assets.
- Proof of payments to creditors and tax authorities.
- Final accounting or proposed distribution schedule filed with the court.
- Receipts, releases, or court order approving the final distribution.