Detailed Answer: How Tennessee Estates Distribute Remaining Funds to Children

This FAQ explains the common steps for distributing the remaining estate funds to a decedent s children in Tennessee after all taxes, valid creditor claims, administrative costs, and court fees are paid. This is general information only and not legal advice. For a binding answer about a specific estate, consult a Tennessee probate attorney.

Overview of the process

When a person dies, the estate pays taxes, funeral costs, and creditor claims before any distribution to heirs. The person named as personal representative or executor—by will or by court appointment if there is no will—collects assets, pays debts and expenses, and asks the probate court to approve a final settlement and distribution. In Tennessee the probate process and intestate succession rules control how and when children receive the remaining funds.

Step by step: From payment of debts to distribution

1. Appointment of personal representative

   The court issues letters testamentary or letters of administration to the person who will manage the estate. That person has the legal authority to collect assets and pay obligations.

2. Inventory and notice to creditors

   The personal representative locates assets, prepares an inventory, and provides required notices to creditors and potential heirs. Creditors then have a statutory period to file claims with the court or the representative.

3. Payment of taxes, claims, and expenses

   The representative pays funeral costs, administration costs, probate court costs, attorney fees approved by the court, and any valid creditor claims. If federal or state estate or income taxes are due, the representative files and pays those taxes. Tennessee currently does not impose a state estate tax, but federal estate tax and final income tax obligations may apply. Refer to the IRS for federal estate tax rules at https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax and to Tennessee resources for state rules at https://www.tn.gov/.

4. Accounting and court approval

   The personal representative prepares a final accounting showing receipts, expenses, claim payments, and the remaining distributable estate. The representative files the accounting with the probate court and gives notice to heirs and beneficiaries. Heirs can review the accounting and raise objections before distribution is approved.

5. Petition for distribution and court order

   After the accounting period ends and any disputes are resolved, the representative files a petition for distribution. The court issues an order authorizing distribution under the will or under Tennessee s intestacy rules if there is no valid will.

6. Distribution to children

   If the decedent had a valid will identifying beneficiaries, the court must follow the will s directions, absent grounds to contest it. If there is no will, Tennessee s intestate succession rules determine how children share. Typically, surviving children divide the estate equally by right of representation unless state statutes or special circumstances alter that share.

7. Receipts and final closing of the estate

   The representative obtains receipts or releases from each beneficiary after distribution, files a final report with the court if required, and closes the estate. The court then discharges the representative s duties.

How shares for children are calculated in Tennessee

When the decedent dies without a valid will, Tennessee s intestacy rules allocate the estate to heirs. In most simple cases where the decedent s only heirs are their children, those children inherit in equal shares by representation. If a child predeceased the decedent but left descendants, those descendants typically take that deceased child s share per stirpes. The precise distribution can change if a surviving spouse, nonmarital children, or adopted children are present.

To review Tennessee statutes and the exact language of intestate succession and probate matters, search the Tennessee Code on the Tennessee General Assembly site at https://www.capitol.tn.gov/ and consult the probate information pages at the Tennessee Administrative Office of the Courts: https://www.tncourts.gov/programs/self-help/probate.

Common special situations that change distribution

• If a child is under a legal guardianship, the guardian may receive funds on that child s behalf.
• If a child is disinherited by a valid will, that child may not receive a share unless the will is successfully contested.
• If there are federal estate tax liabilities or ongoing claims, distribution may be delayed until those matters resolve.
• If assets pass outside probate (for example, by joint ownership with right of survivorship, payable on death accounts, or beneficiary designations on retirement accounts), those assets generally transfer to named joint owners or beneficiaries and do not form part of the probate distributable estate.

Practical checklist for the personal representative

• Obtain certified copies of the death certificate.
• Open an estate bank account for receipts and payments.
• Publish or send required creditor notices and evaluate claims promptly.
• Keep detailed records of all transactions for the final accounting.
• File tax returns and pay any taxes before distributing assets.
• Prepare and file a petition for distribution and obtain a court order before making final distributions.
• Get written receipts or releases from each child after distribution.

Helpful Hints

• Start early: locating assets and notifying creditors takes time. Acting quickly reduces delays.
• Use a probate attorney if the estate has complex assets, disputes among heirs, or significant tax exposure. An attorney can prepare the required filings and court-ready accounting.
• Separate probate and nonprobate assets: beneficiary-designated accounts and jointly held property often transfer outside probate and can change the amount available for distribution to children.
• Keep beneficiaries informed. Clear communication reduces the risk of objections and contested accountings.
• Keep accurate, dated receipts and bank records. The court will expect a clear accounting before approving distributions.
• Search for outstanding debts and claims thoroughly. If an omitted creditor later files a valid claim after distribution, the personal representative or beneficiaries may face complications.

Where to find Tennessee law and official resources

To read Tennessee statutes and related rules, use the Tennessee General Assembly site at https://www.capitol.tn.gov/. For practical probate forms, guidance, and court contact information, see the Tennessee Administrative Office of the Courts probate resources at https://www.tncourts.gov/programs/self-help/probate.

Disclaimer

This article provides general information about Tennessee probate and distribution to children after debts and taxes are paid. It is not legal advice and does not create an attorney client relationship. For advice about a particular estate, you should contact a licensed Tennessee attorney who handles probate and estate matters.