Skip to Content

We are a Veteran Owned Business, providing 20% discounts for Veterans, First Responders, Elementary and High School teachers. Please contact us to set up a phone or Zoom meeting. Taking care of you and your family, It's What We Do!

What are the consequences of making an at risk distribution?

Posted on Mon Jun 29, 2015, on Estate Litigation

From our “Ask a Question” mailbag: At Risk Contribution Consequences in Chester County, PA

Most Recently Updated July 15, 2018.

“I am the executor of my Mother’s estate in Chester County, Pennsylvania. I have advertised the estate and paid all the valid creditors, but a neighbor of my mother has made a claim for a five-figure sum of money that has no validity. Can I make distribution without paying him?”

At Risk Contribution Consequences in Chester County

The quick answer is yes, but the right answer is that you should not.

At Risk Contribution Consequences in Chester County

As the executor, you are free to make “at risk” distributions, meaning a distribution that may put you personally at risk. Any experienced Chester County probate lawyer should advise you that ignoring your mother’s neighbor could put yourself at risk. Remember, even when your attorney’s asking you to slow down or take a few extra steps, they’re trying to prevent you from causing yourself more problems later on. You might be motivated to close out your duties quickly, but that neighbor could make some major hassles for you—even if their claim’s not valid.

Pennsylvania is Creditor Friendly

To begin with, Pennsylvania is a rather creditor-friendly state. If the executor knows of a creditor’s claim made within the one-year period after properly advertising the estate, the executor must address that claim. If you do not, and if you distribute all the assets, the creditor can petition to force you to account and explain why he was not paid.

Even if you convince the judge that the claim is invalid, you will still have to pay for your time in court. As you have already distributed all the funds, those costs will likely come out of your own pocket. Worse, if the judge finds the claim valid, you could be paying for all the court time plus paying the cash claim yourself.

File a Formal Accounting

Instead, you are free to have an attorney experienced in Orphans’ Court litigation file a Formal Account with the Chester County Orphans’ Court. In this accounting your attorney will explain that there is a claim and you question its validity. You will then have a hearing where the judge will listen to both sides and make a ruling. If you follow the ruling, then you (and your personal property) are protected.

Further Estate Litigation Questions?

The at risk contribution is only one of many Estate Litigation issues our firm addresses. Consequently, if you want to learn more, please read my more detailed article, Trust and Estate Litigation All You Need to Know.

In Conclusion: At Risk Contribution Consequences in Chester County

I hope that this article was helpful in explaining consequences of an at risk contribution. Further, I included links to even more detailed information on my website. Therefore, please contact me and let me know how I did. Certainly, your comments and questions are welcome!

Let our Litigation Lawyers help walk you through what can be a confusing process. To begin with, call to speak to one of our experienced Litigation Attorneys.  By all means, our lawyers are ready to answer your questions. In fact, feel free to contact our office for a free consultation. Ultimately our goal is to put our 25 years of estate litigation experience to work for you.

Wills, Trusts, Probate, and Estate Litigation It’s All We Do!

Tags:

Chester County, creditor claims, Duties and Responsibilities, Estate Litigation, Estate Litigation Attorney, Estate Litigation Lawyer, Fiduciary Duty, Formal Accounting, Pennsylvania

Peter KlenkPeter Klenk

What Our clients are saying

Klenk Law Logo
Stars

Chris B.

AWESOME LAWYER! Peter Klenk is an exceptional attorney and a very nice person! Today I spoke with Peter about estate planning and was impressed with by his professionalism, cordiality, and attention to detail. I highly recommend Klenk Law for probates, wills, trusts, and other issues germane to estate planning!

Klenk Law Logo
Stars

Klenk Law is an exceptional practice. Their fine lawyers and staff team up to produce excellent results for their clients. They excel at explaining the often cryptic laws and policies that govern estate planning right down to the complexities of the various "trust" frameworks. Peter himself manages each client together with his great team, and he has a rare quality to be both a walking encyclopedia of planning minutia and also one of the most likable lawyers I have ever had the pleasure of dealing with. He is truly generous in intellect and in his personal approach to getting the "big picture" for complex family structures. I trust him implicitly to help me make the right choices for the future. In short, Klenk Law is a gem of a firm.

Klenk Law Logo
Stars

Andrea Wilson

Peter is excellent. I had a very complicated situation with my parents' estate planning and potential Medicaid needs. Peter was very knowledgeable in estate planning matters, able to define the best solution for the situation. Additionally, he was congenial and able to communicate effectively to my senior citizen parents the benefits of estate planning. He earned my trust, and more importantly, my parents' trust in a 45 mins consultation period. Highly recommend Peter. He is very easy to work with.

Klenk Law Logo
Stars

Dylan Small

Peter provided outstanding advice and preparation of a will and trusts.

Klenk Law Logo
Stars

Stephen T.

Peter and his staff handled all of our needs in a very professional and timely matter.

Let us put our expertise to work for you.

Free consultation within 24 hours.