When you name a beneficiary, you naturally assume they will always be easy to find and contact. Years later, however, they may move, change their name, or lose touch with the family.
When an executor discovers that a named beneficiary cannot be located, they cannot simply ignore the person’s inheritance. The executor must follow the will and applicable probate laws while protecting the beneficiaries’ interests.
This can put the estate administration on hold, particularly when the missing beneficiary is entitled to a substantial share. So, what options does an executor have? And what measures can be taken to prevent improper distribution of property?
The Executor Begins With a Thorough Search
In most cases, the search is guided by information already available to the family and executor. This includes old addresses, telephone numbers, email addresses, employment information, correspondence, and other records that can provide useful leads.
The executor can also speak with relatives, friends, former colleagues, or other people who may know the beneficiary’s whereabouts. The extent of the search will depend on the circumstances, including the value of the inheritance and the information available.
While at it, the executor will keep detailed records of the search, such as who was contacted, when contact was attempted, what information was discovered, and what additional steps were taken. This documentation proves that they made a genuine effort to find the beneficiary.
The Inheritance is Protected During the Search
A missing beneficiary’s share does not automatically become available to the other beneficiaries. Distributing those assets prematurely could create legal problems if the beneficiary later appears and asserts their right to the inheritance.
Depending on the circumstances and applicable state law, the executor may need to keep the beneficiary’s share separate or seek instructions from the probate court.
Court Guidance May Be Necessary
If reasonable efforts fail to locate the beneficiary, the executor may seek direction from the probate court. The ruling often depends on the jurisdiction, the estate documents, the value of the beneficiary’s interest, and the steps already taken to find them.
Better Estate Planning Can Prevent Future Complications
While no estate plan can guarantee that every beneficiary will remain easy to locate, good planning can give an executor better information to work with. That means if the beneficiary’s contact information is current, administration will be easier.
It is also important to review wills, trusts, and beneficiary designations because assets like retirement accounts and life insurance policies often pass under beneficiary designations instead of the will. This process can therefore identify outdated information and ensure your estate plan reflects your intentions.
At Michael F. Kanzer & Associates, P.C., we can help you create and update your estate plan. Whether you want to review beneficiary designations, address changing family circumstances, or create a will from scratch, our team will provide legal guidance to ensure everything is carried out according to your wishes and complies with applicable laws. Contact us today to discuss your needs and learn more about our services.