Detailed Answer — How the Personal Representative Distributes Remaining Estate Funds to the Decedent’s Children in Virginia
Disclaimer: This is general information and not legal advice. Laws vary by situation. Consult a Virginia probate attorney for guidance specific to your case.
When a decedent’s debts, taxes, and administration expenses are paid, the personal representative (also called the executor or administrator) follows a process under Virginia law to distribute the remaining estate assets to the heirs or beneficiaries. The exact steps depend on whether the decedent left a valid will or died intestate (without a will). The legal framework for wills, probate, and intestate succession in Virginia is in Title 64.2 of the Code of Virginia. See Virginia Code, Title 64.2: https://law.lis.virginia.gov/vacode/title64.2/ and the intestate succession chapter: https://law.lis.virginia.gov/vacode/title64.2/chapter2/.
- Personal representative appointment and authority. If the decedent left a will, the nominated personal representative files the will for probate with the circuit court in the county where the decedent lived. If there is no will, the court appoints an administrator. The court issues letters testamentary or letters of administration that give legal authority to collect assets, pay bills, and make distributions. The probate rules and duties are governed by Title 64.2.
- Inventory and asset collection. The personal representative locates, secures, and values estate assets (bank accounts, investments, real property, personal property). They usually obtain a federal employer identification number (EIN) for the estate and place estate funds in an estate account to keep them separate from personal funds.
- Notification and claims. The personal representative notifies known creditors and may be required to publish a notice to unknown creditors, depending on the circumstances. Valid creditor claims must be evaluated and paid from estate assets before distribution. Keep documentation of every claim paid or rejected.
- Paying taxes and administrative expenses. The representative prepares and files the decedent’s final personal income tax returns (federal and Virginia) and any required fiduciary (estate) income tax returns (e.g., IRS Form 1041) for the estate while it is open. If the estate must file a federal estate tax return, that filing and payment occur before distributions that would affect the tax basis. For federal estate and fiduciary tax filing guidance see the IRS: https://www.irs.gov/forms-pubs/about-form-1041. For Virginia tax information, see the Virginia Department of Taxation: https://www.tax.virginia.gov/.
- Accounting and court approval (when required). Many personal representatives prepare a final accounting showing receipts, expenses, claims paid, taxes paid, and the remaining balance. The representative files the accounting with the probate court, or requests the court’s order approving a proposed distribution. In some estates—particularly those with disputes or when the will requires court supervision—the court must approve the accounting and distribution before funds are released. See Virginia probate statutes in Title 64.2: https://law.lis.virginia.gov/vacode/title64.2/.
- Identifying heirs and determining shares. If there is a valid will, distribute according to the will’s terms after the estate has enough liquidity to satisfy the bequests. If there is no will, Virginia’s intestate succession rules control who inherits and in what shares. The intestacy provisions are in Title 64.2, Chapter 2: https://law.lis.virginia.gov/vacode/title64.2/chapter2/. Typical issues the representative resolves include whether children are biological, adopted, or posthumously born, and whether any children predeceased the decedent leaving their own descendants who might take by representation.
- Secure releases and receipts. Before making distributions, the representative often requires heirs to sign receipts and releases acknowledging their share and releasing the representative from further liability for distributing those funds. If heirs sign a written agreement or court order approves a distribution plan, the representative distributes assets accordingly.
- Make distributions and close the estate. The representative disburses funds (checks, wire transfers, or transfers of titled property) to children or their representatives per the will or intestacy plan, documents the transfers, and files a final statement with the court to close the estate. The court may issue a formal order discharging the personal representative from further duties once it is satisfied the estate was properly administered.
Illustrative hypothetical (simple example)
Suppose Mary dies leaving a $200,000 estate, two adult children, no surviving spouse, and no will. The court appoints an administrator. The administrator collects the assets, pays $10,000 in funeral and administration costs, pays $5,000 in valid creditor claims, and files all required tax returns (no federal estate tax applies). The remaining balance ($200,000 − $10,000 − $5,000 = $185,000) becomes distributable. Under Virginia intestacy rules (see Title 64.2, Chapter 2), the administrator identifies the two children as heirs, prepares an accounting, obtains a court order or written releases if needed, and divides the $185,000 between the two children per the applicable intestacy shares (in this simple fact pattern, typically equally). The administrator documents the distributions, collects signed receipts, and files the final accounting with the court.
When disputes or complications arise
If heirs dispute the accounting, the validity of the will, creditor claims, or tax liabilities, the personal representative should seek guidance from the circuit court or a probate attorney. Common complications include unclear beneficiary designations, contested paternity/adoption issues, claims by creditors, or allegations of mismanagement by the representative.
Helpful Hints
- Hire a probate attorney early if the estate has significant assets, disputes, or complex tax issues. A lawyer helps with court filings, notices, and the final accounting.
- Obtain an EIN for the estate and open a separate estate bank account to keep funds separate and simplify accounting.
- Keep meticulous records of every asset, bill paid, claim, and tax filing; courts expect clear documentation.
- Use certified mail or other trackable delivery when giving notices or sending releases to heirs and creditors.
- Verify heir identities and relationships with birth, marriage, and adoption records before distributing funds.
- If children are minors, trusts or guardianships may be necessary to hold their share—discuss options with an attorney.
- Understand timing: routine estates can take several months; complex or contested estates may take a year or longer.
For primary legal text on wills, probate, and intestacy in Virginia consult Title 64.2 of the Code of Virginia: https://law.lis.virginia.gov/vacode/title64.2/. For tax filing resources see the Virginia Department of Taxation (https://www.tax.virginia.gov/) and the IRS fiduciary forms page (https://www.irs.gov/forms-pubs/about-form-1041).
Again: This information is educational only and is not legal advice. A Virginia probate attorney can explain how the rules apply to your specific facts and can prepare the necessary court filings and distribution documents.