Should an executor wait for tax clearance before making final distributions?

When preparing the return, partial distributions may be possible when the estate clearly has excess liquidity, but the executor should retain a documented reserve. When preparing the return, the amount and timing of a reserve depend on the estate's assets, filing status, open claims, and state procedure. Save the original records used to determine the tax treatment, then ask a tax professional to verify the taxpayer, the required form, the basis calculation, and the applicable deadline.