What is the legal term for a distribution of assets before the estate is settled?

The term "interim distribution" refers to the distribution of assets from an estate to beneficiaries before the estate is fully settled. This kind of distribution can occur when the estate's executor or administrator determines that certain assets can be safely given to beneficiaries without jeopardizing the estate's financial obligations or the final settlement process. This is particularly relevant when there are sufficient liquid funds to cover debts and expenses, enabling the executor to provide partial distributions to beneficiaries while the estate administration continues.

The nature of interim distributions is often governed by the jurisdiction’s probate laws, ensuring they are managed properly to avoid conflicts or financial shortcomings later on. This mechanism helps reduce the waiting period for beneficiaries to receive their inheritance, fostering a more efficient and satisfactory estate administration process.