Can Beneficiaries Demand Cash Instead of Property: Understanding In-Kind Distributions in Florida Probate
In-kind distributions allow beneficiaries to receive estate assets rather than having those assets sold and the proceeds divided. For example, if a decedent’s estate includes real estate, securities, business interests, or other property, beneficiaries receive it in its existing form. Florida law generally favors distributing assets in mind, but a decedent’s will may give the executor discretion over how assets are divided. A recent Florida appellate decision shows why discretion matters when beneficiaries want cash instead.
What’s an In-Kind Distribution?
An in-kind distribution means the beneficiary receives property instead of its cash equivalent. For instance, an estate holding shares in closely held companies may distribute those shares directly rather than sell them. Section 733.810 of the Florida statutes supports this approach, stating that estate assets generally “shall be distributed in kind” subject to specified exceptions, such as a general power of sale, a contrary intention in the will or trust, or another provision of the Probate code.
Real Case Example: Hinson v. Hinson
The 2025 court decision in Hinson v. In Re: John A. Hinson illustrates these rules. John Hinson died in 2021, naming his wife, Jeanie Hinson, as personal representative. In the will, she was given direction over estate property. Specifically, she was allowed to make a distribution in money or in kind or partly in money and partly in kind. The will allocated 95% residuary share to Mrs. Hinson, 3% to the secretary, and 2% to a friend of Mr. Hinson.
The estate’s assets included interests in a closely held Georgia partnership and stock in several closely held Florida corporations. Mrs. Hinson petitioned the probate court to distribute those interests in kind and proportionally to the beneficiaries, arguing that this would avoid multiple appraisals, valuations, and disputed and unnecessary expenses. But the minority beneficiaries wanted formal valuation and cash instead. The probate court agreed with the minority beneficiaries and ordered cash distributions. Mrs. Hinson appealed, arguing that the probate court’s decision conflicted with both the terms of the will and Florida law.
On Appeal, the Third District Court reversed the lower court’s decision. It held that the will gave Mrs. Hinson discretion to distribute the assets in kind and that Florida law favored that. The court also considered Mrs. Hinson’s fiduciary duties as the personal representative and found no prejudice or inequity sufficient to override her express discretion. If cash distributions were to be denied, that would shift appraisal, valuation, and sale costs to the estate.
This case makes important points.
- A beneficiary doesn’t automatically have a right to demand cash simply because they prefer cash.
- When a will clearly gives discretionary authority for in-kind distributions, a probate court cannot substitute its judgment for the personal representative’s reasonable exercise of that discretion.
- As a beneficiary, before challenging a proposed distribution, it’s important to review the will, Florida’s statutory rules, and fiduciary duties.
- Florida law favors in-kind distributions to preserve the nature of estate assets.
Contact Valero Law for Legal Help
If you are facing a dispute over an estate distribution in Florida, contact our Miami probate and estate litigation lawyer today by calling 305-607-7011 to discuss your options. We serve clients in Davie, Coconut Grove, Broward County, and Miami-Dade County.
Source:
scholar.google.com/scholar_case?case=2413804020348145645&q=Hinson+v.+In+Re:+John+A.+Hinson+&hl=en&as_sdt=4,10
