What must be satisfied before any distributions are made to beneficiaries?

The requirement that claims from creditors must be satisfied before any distributions are made to beneficiaries is rooted in the principle of ensuring that a decedent's debts are addressed prior to the distribution of the estate's assets. In the probate process, the personal representative (executor or administrator) is responsible for managing the estate, which includes paying off any outstanding debts and claims against the estate. This ensures that the beneficiaries receive their inheritances free from claims that could diminish their share.

When an estate is settled, it’s essential to prioritize the payment of debts to maintain fairness and legal compliance. Creditors have a right to seek payment from the estate before any distributions occur, meaning the estate must be sufficiently solvent to cover both debts and any legal fees before distributing assets to beneficiaries. This process protects the beneficiaries by ensuring that the estate is fully administered and that they don’t inherit responsibilities for outstanding claims or debts.

In contrast, the other options do not constitute prerequisites for distributing assets to beneficiaries. For example, capital gains taxes may arise upon the sale of estate assets but do not need to be satisfied prior to beneficiary distributions. Similarly, executor fees are typically paid from the estate's assets after debts are settled but they do not precede the payment of debts to creditors. Legal actions