5 Important Beneficiary Rights to Know

A lot of things can happen when an executor or administrator of an estate begins the process of asset distribution—asset mismanagement, distribution delays, and lack of communication among them. As a beneficiary of a trust or an estate, you are entitled to certain rights. Knowing these beneficiary rights will help set appropriate boundaries and expectations, ensuring proper administration of the estate.

Beneficiary Rights to Notification

When a will is in place, you have a right to be notified when the will has been entered into probate, as well as the right to know who has been appointed to manage the estate.

Beneficiary Rights to Information

As a beneficiary, you have the right to always know what is happening with the estate. This means you have a right to receive copies of the will or trust, ask about your inheritance (and whether assets must be sold to pay off debts), and request periodic statements of account (including detailed reports on assets, liabilities, income, expenses, and requests for compensation).

Beneficiary Rights to Timely Distribution & Fair Treatment

Executors or administrators have a fiduciary duty to act in the best interest of the beneficiaries. Unless a will or trust says otherwise (and taking the complexity of the estate into consideration), completing probate or distribution of assets should not take years upon years, nor should it exhibit preferential treatment.

As a beneficiary, you have the right to expect fair and unbiased asset distribution within a reasonable amount of time. In most states, this means up to twelve months.

Beneficiary Rights to Contest a Will

After a will has been entered into probate, you have the right to contest the will if you feel it was drafted through undue influence or fraud, especially if it was improperly witnessed or the designated signee lacked the mental capacity to know what they were signing. In most states, you have up to 120 days to contest the will once you are informed of probate.

Beneficiary Rights to Hold Trustees Accountable and Remove an Executor

At any point in time, if you feel an executor or administrator is mishandling the estate, you have a right to petition the court for a remedy, which may include suing the executor or administrator and asking for removal.

Be careful, though, because the court will only remove an executor or administrator if you have a valid reason to believe they are managing the estate in bad faith. This may include stealing, selling property below market value, failing to keep records, or other acts of misconduct. Other valid reasons may include a lack of mental or physical capacity or conviction of a crime. What the court won’t do is remove an executer simply because you didn’t like a decision they made.

For more information on your rights as a beneficiary and for real-life case studies, download Your Guide to Beneficiary Rights.

Tags: accountability, beneficiary, fair treatment, Fiduciary, Probate, rights, timely distribution, Trusts, Wills
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