At CM Lawyers, we’ve helped hundreds of families—just like Waverley’s—navigate the complexities of estate administration in NSW. Sometimes a little help, sooner, can change everything.
When Waverley lost her father unexpectedly, she was not only grieving but facing a stack of bills and financial stress.
“The waiting was the hardest. Knowing Dad had provided for us, but not knowing when—or if—we’d actually see any of it. It just felt endless.”
That’s when she first heard about an interim distribution—a partial inheritance payout before the probate process in NSW is complete.
“It felt like a breath of fresh air... a way to get some relief without waiting for everything to be finalised.”
But interim distributions are not as simple as just receiving money—they come with legal risks and responsibilities, especially for the executor in NSW probate.
Distributing assets can take months, sometimes years. If the executor is unprepared or if disputes arise, delays grow longer.
“You expect the process to just… work,” Waverley recalls. “But when delays happened, it felt like our lives were stuck in limbo.”
For families counting on inheritance, an interim distribution can be the bridge that gets them through.
In NSW, executors are expected to finalise estates within 12 months—commonly called “the executor’s year.” This timeline is a safeguard for beneficiaries. Delays often come from:
Locating assets
Paying debts and taxes (and understanding what are the tax implications of probate)
Managing disputes
Ensuring fair distribution
During this period, an interim distribution may be possible, but it must be approached with legal caution.
If an estate is dragging on, a beneficiary can ask the executor for a partial payment.
“I was nervous about asking,” Waverley admits. “But our solicitor said it’s fairly normal in cases where people need help now.”
An executor must ensure that enough funds remain to cover debts, taxes, and other beneficiaries before making a payment.
Anyone named in the will can request it—but they’re most common for those in urgent need. According to the Wills Act 2000 (NSW), if someone was financially dependent on the deceased, they may be eligible for a maintenance distribution within 30 days.
These payments come from the beneficiary’s share—not the general estate.
Sometimes, the executor in NSW probate arranges a partial payment to one or more beneficiaries while awaiting final distribution.
“At first, I thought everyone would get paid at once. But when the solicitor explained it, I realised how the law balances fairness with practicality,” Waverley says.
Before any distribution happens, the executor must:
Handle debts and liabilities
Fulfil tax and reporting obligations
Verify the validity of all claims
Australian law prevents early payouts until these duties are complete—except in specific, court-accepted cases.
Under Section 92 of the Probate and Administration Act 1898 (NSW):
But even when the law is clear, disputes can make things messy. Executors must also be mindful of when is Probate Notices are required in NSW, as failing to meet notice obligations can expose them to legal risks. That’s why executors must be cautious and well-advised.
Executors in NSW carry real legal risk when issuing early payouts:
Potential Creditors: Unknown debts may surface after an interim distribution, making the executor personally liable. That’s why publishing a notice to creditors in the Government Gazette and waiting 30 days is often recommended.
Family Provision Claims: Relatives (such as children, partners, or parents) may lodge claims under the Succession Act NSW, potentially months after probate begins.
Tax Debts: Estate tax obligations aren’t always clear until every asset is accounted for. Miscalculations can leave executors out of pocket.
“Knowing all this, I was grateful our executor was cautious and transparent,” Waverley says.
Only if absolutely certain the estate has enough funds left. Executors should:
Communicate clearly with all beneficiaries
Obtain written consent from non-receiving parties
Calculate payouts conservatively
Keep reserves for unknown liabilities
If there’s any uncertainty, the Supreme Court of NSW can approve the interim payment—especially useful in complex or disputed estates.
“When the court backed our executor’s plan, it gave everyone peace of mind,” Waverley recalls.
Plan carefully and get legal advice early
Communicate every decision
Interim distributions are not final—stay flexible
Court involvement can help protect everyone
While interim distributions carry risk, they can be a vital support tool when managed properly. For many beneficiaries navigating probate in NSW, it may be the financial relief they need to keep moving forward—if done with care, clarity, and professional guidance.
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