In November of 2020 a dispersement was made to all receiving parties of the estate. Additional monies were held as "reserve". How long must the executor hold onto these funds? Is there a time limit that applies once the initial estate has been settled? State of NJ.
This is at the executor’s discretion
The estate cannot be finalised until all debts and taxes have been identified and paid which may require waiting to file tax returns and waiting for their assessment. Which may mean the estate earns income in the next year, incurring taxes, requires g new returns a year later. And so on.
A year or two can be considered typical. 5 years not unusual in complex estates or there there are disputes.