When you’ve been entrusted as the executor or trustee of a will or trust, ensuring assets reach their designated beneficiaries is paramount. However, situations arise where locating a beneficiary becomes challenging, often due to estrangement or outdated contact information. As a fiduciary, what steps should you take when faced with this scenario?
Your duty as a fiduciary requires reasonable diligence in locating missing beneficiaries. This involves initial efforts such as calling their last known phone number and sending notices to their last known address. If these steps prove futile, further measures are necessary. Reach out to mutual acquaintances, explore social media and people-search sites, publish notices in newspapers, and review property records. The extent of your search efforts should align with the value of the assets involved.
For substantial assets, additional steps may include engaging a private investigator or utilizing heir search services. These services employ specialists, like forensic genealogists, who delve into comprehensive searches across jurisdictions and databases to trace beneficiaries. They not only locate beneficiaries but also verify their identity, ensuring rightful distribution and safeguarding against fraudulent claims.
In instances where exhaustive searches yield no results, seeking court approval for a preliminary distribution to located beneficiaries may be necessary. The court typically mandates holding the missing beneficiary’s share in trust for a specified period to allow potential claims. Indemnity insurance can mitigate risks should a missing beneficiary surface post-distribution.
Navigating these complexities can be daunting. Hiring a knowledgeable attorney experienced in estate and trust administration can streamline the process. Legal professionals understand the nuances of state laws, expedite court petitions, and manage expectations of beneficiaries awaiting distribution.
At Cheever Law, APC, we don’t just draft documents; we ensure you make informed and empowered decisions about life and death for yourself and the people you love, starting with a valuable and educational Life & Legacy Planning Session. This will allow you to get more financially organized and make the best choices for the people you love. If you have already completed your estate plan, we will review that plan at your Life & Legacy Planning Session to ensure that it will work the way you intend and address any holes or gaps that may be present if circumstances have changed since you executed your plan.
To learn more about our one-of-a-kind systems and services, contact us or schedule a no-obligation 15-minute introductory phone call today.