Beneficiary
One of the goals of estate planning is to ensure loved ones receive the inheritance intended for them. When a person dies (the decedent), the named beneficiaries in a person’s will, heirs, and other interested parties have a right to know about the death and the administration of the estate of the deceased person.
Receiving this notification can inform loved ones of their right to certain estate assets and allow them the opportunity to be involved throughout the probate case.
How long you can expect to wait before you’re notified of a family member’s death will largely depend on state law and the type of estate planning preparations your loved one put in place.
What Is Probate?
Probate is the legal process of settling the financial affairs of a deceased person. This process may be supervised by the probate court in the county where the decedent resided immediately before death, though many states allow for informal probate proceedings that have no or little involvement of the probate court to administer the decedent’s estate.
During the probate process, the last will and testament is submitted to the probate court if the testator created one. If there is no will, the deceased person is said to have died intestate, and the state’s intestate succession laws apply. These are the state’s default laws on inheritance. The family members who are most closely related to the deceased person receive their property after the case is probated.
During the probate process, the deceased person’s assets are gathered, creditor claims are paid off, and, finally, the remaining assets are distributed to the beneficiaries or heirs. The person who carries out the administration of the estate is usually referred to as an executor, if there is a last will and testament, or an administrator if there is not. The executor or administrator is a fiduciary who must put the estate’s interests ahead of their own. The executor can hire a probate lawyer to assist them with the process if they wish.
What Are Beneficiaries?
Beneficiaries are people who are specifically named to receive property after a person dies. For example, a beneficiary may be named to receive life insurance proceeds, a bank account, or a retirement account. A testator can draft a will that includes named beneficiaries to avoid the state’s intestacy laws. A beneficiary of a trust is named in the trust document to receive the income or principal from the trust assets.
What Are Heirs?
Heirs are family members of the deceased person who have a right to inherit from the decedent if they do not create a will.
Steps in the Probate Process
The steps involved in the probate process depend on many factors, including:
- What type of estate planning documents are in place
- Whether the decedent lives in a state that has adopted the Uniform Probate Code (UPC)
- Whether formal or informal probate is required
- State law that applies to the case
- What type of property the decedent owned, including real estate
- The value of probate assets
- Whether there is a will contest
While individual rules and processes may apply, the general procedure for probate includes the following steps:
Opening the Case
The probate process officially begins when the executor files a petition for probate with the probate court in the county where the deceased person lived immediately before death. The executor must file the original will; a copy of the will does not suffice. The executor would also be required to prove the validity of the will, usually either through presenting witnesses who saw the testator sign the will or provide self-proving affidavits. The executor may also have to file a death certificate with the probate court.
If there is no will, the person who wants to be named the administrator of the estate would file the petition and request to be appointed. After the executor or administrator is appointed, they will receive letters testamentary or letters of administration, which give them the legal authority to act on behalf of the estate.
The executor may be required to post a bond, but this requirement can be waived in a will. The amount of any required bond depends on the size of the estate.
Notifying Interested Parties
One of the most important jobs of the executor is to notify interested parties of the decedent’s death and the opening of the probate case. Generally, the executor is required to personally notify the following people related to the deceased person:
- Heirs
- Beneficiaries
- Known creditors
Additionally, the executor may be required to publish a notice of the probate court in a local newspaper of regular circulation.
The executor will also need to provide proof that they notified beneficiaries and made the publication.
Inventorying Assets
The executor is responsible for gathering the assets of the decedent and safeguarding them. They may also be required to prepare an inventory of the assets.
Handling Claims
The executor is responsible for receiving final bills and claims from creditors against the estate, verifying the validity of these claims, and paying on valid claims. If there is a will contest, the executor can hire a probate lawyer to help resolve the matter.
Preparing Legal Documents
The executor may be required to prepare other legal documents for the court, as required. These may be standard in every case, such as an inventory and accounting, or they may vary based on state law or the specific administration of the estate. For example, other documents may be necessary if the executor seeks to sell real estate owned by the estate.
Administering the Estate
Administering the estate of the deceased person may involve additional steps, such as:
- Appraise assets, as necessary
- Obtain an employer identification number for the estate from the IRS
- Open a bank account in the name of the estate
- File the estate tax return
- File a list of creditors’ claims that were approved and denied
Closing the Estate
The executor must officially close the estate to be relieved of their legal duty. The executor files a final accounting of what they did in their official capacity. They may also be required to:
- Mail a notice to heirs and beneficiaries of the impending closing of the estate
- File proof that they mailed the notice
- Obtain the court’s permission to distribute property to heirs or beneficiaries
- Transfer assets
Notification Rules For the Beneficiary of a Will
How long after a person dies will beneficiaries be notified depends largely on state law. Some states have adopted the Uniform Probate Code, which provides consistent guidelines across multiple jurisdictions. The states that have adopted the Uniform Probate Code include:
- Alaska
- Arizona
- Colorado
- Hawaii
- Idaho
- Maine
- Michigan
- Minnesota
- Montana
- Nebraska
- New Jersey
- New Mexico
- North Dakota
- South Carolina
- South Dakota
- Utah
In these states, notice of a petition to probate a will when a hearing is required must be provided at least 14 days before the hearing date if the will is probated with informal proceedings. This notice is only required to be given to any personal representative of the decedent who has not been terminated and to any interested party demanding notice.
For formal probate, 14 days’ notice is also required before any hearing for the petition. This notice must be provided to the following:
- The surviving spouse, children, and heirs of the decedent
- The beneficiaries of the will
- Executors named in the will
- Any personal representative of the deceased person who has not been terminated
- Other interested parties who have demanded notification
Additionally, the executor must provide notice by publication to all unknown persons and to known persons whose addresses are unknown but may have an interest in the case.
In other states, there may be different rules for notifying beneficiaries. The time limits for notifying beneficiaries is usually based on when the will is probated, not the date of the decedent’s death. For example, the California Probate Code sets a hearing date between 30 and 45 days after the petition for probate is filed. The executor must provide notice to the heirs and beneficiaries at least 15 days before that hearing.
Notification of Trust Assets
If the decedent had a living trust, the rules for notifying a beneficiary of a trust are usually different from notifying a beneficiary of a will. For example, the following timelines apply in different states:
- California Probate Code requires the trustee to send notice to trust beneficiaries and heirs within 60 days of the grantor’s death
- Massachusetts law requires the trustee to notify beneficiaries within 30 days of the grantor’s death
- Washington, D.C. law requires the trustee to notify beneficiaries within 60 days of accepting the trustee position
Notification of Life Insurance Proceeds
Outside a will or trust, there may not be laws regarding when beneficiaries must be notified, such as proceeds under a life insurance policy or in a bank account or retirement account. However, the individual contract may state when notification must be provided.
What To Do If Not Notified as a Beneficiary
Once a will is probated, it becomes a matter of public record. You can request a copy of the will from the probate court. If you find that you are named in a will as a beneficiary but you have not been notified, you might wish to contact a probate lawyer for legal advice and to learn about your legal rights.
You may have the right to file a will contest to revoke the admission of the will. You may also be able to ask the court to determine distribution rights under the will. However, there are often time limits for taking such action, so you may need to act quickly to protect your legal rights.
Trusts are privately administered, so it may be more difficult to know that you have not been notified that you are a beneficiary. However, the grantor may have let you know that you were a beneficiary, or another beneficiary (like a sibling) might mention it. Talk to an attorney from a probate law firm for legal guidance regarding your options.
Takeaway
The time limit to notify beneficiaries depends on state law and the estate planning tool used to distribute assets to loved ones.