Legal Definitions - family allowance

A family allowance is a legal provision that allows a surviving spouse, minor children, and sometimes dependent adult children or parents, to receive immediate financial support from a deceased person's estate. This support is provided during the period between the death and the final distribution of the estate's assets.

The primary purpose of a family allowance is to prevent financial hardship for the deceased's immediate family while the legal process of settling the estate (known as probate) unfolds. State laws determine the specific amount and eligibility criteria for a family allowance, and it typically takes precedence over other claims against the estate, including the provisions of a will.

Here are some examples illustrating how a family allowance might apply:

• Example 1: Sudden Loss of a Primary Earner

  Mark, a father of two young children, was the sole income provider for his family. He passed away unexpectedly without significant liquid assets readily available. His wife, Sarah, suddenly faces immediate expenses like the mortgage, utility bills, and groceries, but Mark's bank accounts are frozen as part of his estate. A family allowance would allow Sarah to access a portion of Mark's estate to cover these essential living costs for herself and their children while the probate process is underway, which could take several months.

• Example 2: Estate with Complex Assets and Debts

  Eleanor passed away, leaving behind a substantial estate that included a small business, several investment properties, and a complex portfolio of stocks. She also had some outstanding business debts. Her husband, David, and their college-aged daughter, who lived at home and relied on Eleanor's financial support, are now without her income. Because of the complexity of the assets and the need to settle debts, the estate's distribution is expected to take over a year. A family allowance would provide David and his daughter with regular funds from the estate to maintain their household and cover the daughter's educational expenses during this extended period, ensuring they are not left without financial means while the estate is meticulously managed.

• Example 3: Will with Delayed Bequests

  Robert passed away, leaving a will that bequeathed his entire estate to his three adult children, with specific instructions for selling his home and distributing the proceeds equally. However, the process of selling the home and liquidating other assets is taking longer than anticipated due to market conditions and legal requirements. One of Robert's children, Lisa, had been living with him and was financially dependent on his support. While Lisa will eventually inherit a significant sum, she needs immediate funds for rent and living expenses as she transitions. A family allowance could be granted to Lisa, providing her with a temporary financial bridge from the estate to cover her immediate needs until the assets are sold and the bequests from the will can be fully distributed.