The final stage in the life of an estate is the distribution phase. For most people, this occurs soon after the property owner's death, in accordance with the decedent's will (or, in the absence of a valid will, the state's intestacy laws). For the most affluent, though, the distribution phase can extend for years. Only certain "laws against perpetuity" prevent estates from living on indefinitely; these laws generally limit the continuation of an estate trust to some period of time (21 years is common) beyond the death of the youngest living heir at the time of the estate owner's death.
If the property owner is married, the distribution phase takes on a higher level of importance and complexity. The unlimited marital deduction, for example, makes it possible for a married couple to defer estate taxation until the death of a surviving spouse, but the deduction is available only to those who actively seek it through pre-death planning.
Planning responsibilities during this stage may include:
- Overseeing distribution of life insurance proceeds,
and working with the client's estate planning team to make sure proceeds are distributed in accordance with estate plans.
- Working with heirs
to determine life insurance and other financial needs arising from receipt of estate assets.
