Beneficiaries are an important part of an estate because of the rights they retain. Because of these rights, a beneficiary can make life difficult for an executor. Therefore, it’s important for an executor to know the beneficiaries and to understand their rights.

 

The Characteristics of Beneficiaries

An executor doesn’t need to have each beneficiary of an estate submit to a drug test. However, the executor should know who the beneficiaries are by reading the will. After identifying the beneficiaries, the executor should then use recall, or, observe the actions of each beneficiary. For instance, if the spouse of a beneficiary is asking, “When do I get my stuff?” at the funeral, the executor should take note of that behavior. Although the spouse is not a beneficiary, and has no right to the estate, the spouse could turn the beneficiary into a nuisance for the estate.

Another possibility is that two beneficiaries are in a  dispute over property left in the will. The executor needs to take note of that behavior as well.

Finally, if an executor observes a beneficiary estimating the worth of the estate, that beneficiary could be a problem for the executor. The greedy beneficiary doesn’t figure in the taxes and other expenses of the estate. Therefore, when they get their actual distribution, it’s usually not what they expect.

So, for these reasons, it’s good for the executor to anticipate future problems that each beneficiary could cause.

The Rights of Beneficiaries

A few rights the beneficiaries have that can cause problems for the executor are the following:

1) A beneficiary is entitled to know that a will names them as beneficiary and the inheritance assigned to them.

2) A beneficiary can contest the will.

3) A beneficiary can petition the probate court to remove the executor.

To appease the beneficiaries and avoid any problems, an executor should plan to communicate with each beneficiary regularly. Keep them in the loop as to where the administration stands and how it is progressing. This method of appeasement worked in the estate I managed regarding a belligerent beneficiary. Basically, I communicated with each beneficiary on a monthly basis. This kept the squabbling down to a level that allowed me to move the estate settlement forward.

Conclusion

As executor, identify each beneficiary in the estate, understand their rights, and communicate with them regularly. By doing so, an executor can appease a belligerent beneficiary, and plan for a smooth administration.

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