A beneficiary who is appointed the executor or trustee has the authority to dispose of property and distribute the trust or estate’s assets. Other beneficiaries often challenge these actions. One such case is resulting in heated litigation over millions of dollars in estate assets around the Napa area.
Can an estate beneficiary challenge the accountings of an executor?
If errors or red flags are discovered upon inspection, estate beneficiaries are entitled to challenge the accountings in court. Suppose it comes to light that an executor or administrator caused financial harm to the estate, estate beneficiaries are entitled to not only petition to have the executor or administrator removed but surcharged as well.
How can beneficiaries get around the will laws?
HOWEVER, THERE IS A WAY FOR BENEFICIARIES TO GET AROUND THE LAWS! Interestingly N.J.S.A. §3B:23-9, allows beneficiaries of an estate to come to a written agreement between themselves to alter the distribution of an estate. This agreement like any other contract can dictate a different means of distributing the estate from what the will provides.
Can a beneficiary of an estate alter the distribution of estate?
HOWEVER, THERE IS A WAY FOR BENEFICIARIES TO GET AROUND THE LAWS! Interestingly N.J.S.A. §3B:23-9, allows beneficiaries of an estate to come to a written agreement between themselves to alter the distribution of an estate.
Can a beneficiary have a say in estate administration?
If estate beneficiaries want to have a say in estate-related decisions, it is essential for them to play an active role in administration and stay apprised of what is happening at every step of the process. Can a Beneficiary Sue the Executor?
What can override a beneficiary?
An executor can override the wishes of these beneficiaries due to their legal duty. However, the beneficiary of a Will is very different than an individual named in a beneficiary designation of an asset held by a financial company.
Can a beneficiary decline part of an inheritance?
A qualified disclaimer can be useful in cases where someone has not set up an exemption trust prior to their death. The qualified disclaimer enables the beneficiary to refuse part or all of the assets, rather than to receive them.
Can a beneficiary be changed after death?
Can a Beneficiary Be Changed After Death? A beneficiary cannot be changed after the death of an insured. When the insured dies, the interest in the life insurance proceeds immediately transfers to the primary beneficiary named on the policy and only that designated person has the right to collect the proceeds.
How long does an executor have to settle an estate in New Jersey?
New Jersey estates cannot settle any sooner than six months from the date a will enters probate. The decedent's creditors have this long to make claims against the estate for payment.
Do all beneficiaries have to agree?
Usually beneficiaries will be asked to agree to the executor's accounting before receiving their final share of the estate. If beneficiaries do not agree with the accounting, they can force the executor to pass the accounts to the court.
How do you deal with a belligerent beneficiary?
How to Handle a Belligerent BeneficiaryA Demanding Beneficiary becomes Belligerent.Communicate with all the Beneficiaries.Have all Complaints go to the Executor.Treat all Beneficiaries Fairly.Executor Confidence is Crucial to Thwart Threats.Remain Resolute against Harassment.Conclusion.
Can you challenge a beneficiary?
Generally speaking, yes. If someone else believes that the policyholder's choice of beneficiary should not be honored then they can raise a claim to dispute it. This, however, can be a lengthy and time-consuming process that involves hiring an attorney and contesting the beneficiary in court.
Can family contest life insurance beneficiary?
The beneficiaries designated in your life insurance policy can be disputed in court after you pass away. These conflicts usually happen when you fail to properly update your beneficiaries after major life events like marriage, divorce, and having or adopting children.
Does a beneficiary have to share with siblings?
The law doesn't require estate beneficiaries to share their inheritance with siblings or other family members. This means that if a beneficiary receives the entire estate, then they are legally allowed to keep it all for themselves without having to distribute any of it amongst their siblings.
How much does an executor of an estate get paid in New Jersey?
New Jersey's executor fee is set by statute. It is 5 percent of the first $200,000 of assets taken in by the executor, 3.5 percent of the next $800,000 of assets and 2 percent on anything in excess of $1 million, said Yake Hauptman, an estate planning attorney with Hauptman and Hauptman in Livingston.
Does an executor have to show accounting to beneficiaries in New Jersey?
I mentioned that you can legally close an estate without an accounting to beneficiaries. New Jersey probate law allows beneficiaries, however, the right to demand an accounting regarding the affairs and transactions of the estate.
What does an executor have to disclose to beneficiaries?
An executor must disclose to the beneficiaries all actions he has taken for the estate. Receipts for bill payments and the sale of real estate or other property must be listed. Distributions of money or property made to beneficiaries must specify dollar amounts and identify the property and beneficiaries involved.
What happens if someone doesn't want their inheritance?
If you refuse to accept an inheritance, you will not be responsible for inheritance taxes, but you'll have no say in who receives the assets in your place. The bequest passes either to the contingent beneficiary listed in the will or, if that person died without a will, according to your state's laws of intestacy.
What happens when you reject an inheritance?
If you disclaim an inheritance it will stay as part of the deceased's estate and will be re-distributed. The problem with this is that you have no control over where the asset goes. It could pass to someone who you would prefer not to receive it.
How do you deal with unequal inheritance?
1. Be Honest. If you choose to leave unequal inheritance for your children, one of the best ways to avoid hurt feelings and resentment among your children is to have an open and honest conversation with them about why you made your decision.
Can a beneficiary disclaim an interest in a trust?
Additionally, a disclaimer must be filed with the trustee or individual responsible for making distributions. A disclaimer can't be made after a beneficiary has accepted the interest she sought to disclaim. Under IRC Section 2511(a), a gift tax is imposed on a transfer in trust.
Michael S. Haber
My colleagues give you good advice. I just want to make two points: (1) It sounds as though the beneficiary is actually focusing on an accounting proceeding, rather than reopening the estate.
Douglas C Martinson II
Without knowing all the facts, it would be difficult for a beneficiary to come back at this late of date and get the estate re-opened absent fraud or concealment and even then it would be difficult since so much time has passed. I would rely on tour attorney's advice in this matter. More
Carrie S. Schormann
Generally, a beneficiary has a period of time to contest estate administration matters. However, that period of time is typically shortened when the court has closed the estate (which appears to have been 2 years ago). Once the estate is closed, and all statutes of limitations have run, the beneficiary is out of luck...
What happens if an agreement between beneficiaries is valid?
If the agreement between beneficiaries is legally valid, the law states that the executor of the estate is bound by its terms. The single case to address this issue is the, Matter of Liss’ Will, which decided that an executor has no power to bring a lawsuit contesting the validity of an agreement between beneficiaries, and he/she must follow the agreement. Of course, while the law makes it clear that the executor is bound to the exact terms of the agreement made between beneficiaries, he/she still has a fiduciary duty to pay death and inheritance taxes, debts to creditors and other obligations of the estate. If the agreement proposes to distribute property that frustrates the rights of third parties, the executor may refuse to comply.
What is the first stipulation for modifying a will?
The first stipulation is that when beneficiaries propose an agreement to modify a Will or the distribution formula of an intestate estate to the executor or administrator the beneficiaries must each be competent, meaning he or she must be of “sound mind” and understanding of the proposed agreement. The law presumes that those who enter into a contract are competent when they make an agreement. Since the law governing consensual agreements modifying a Last Will or Trust has not been the subject of much litigation (or legal discussion), the courts have not analyzed many of these agreements to determine if they are enforceable and because these agreements involve the probate of a will, they can be challenged by interested parties as being the product of undue influence, fraud, or coercion. This hasn’t happened yet, but it would be interesting to see if a court would apply the same legal reasoning it uses to decide a probate litigation case. I suspect they would.
What is probated by surrogate?
Unless a Last Will is the subject of litigation challenging it because of claims of undue influence or a failure to meet the formalities of content and/or execution required by law, a will probated by the Surrogate is intended to assure the transfer of a person’s assets to his/her named beneficiaries. Should there be no will, then the laws of intestacy govern. I have discussed these laws at length elsewhere on this site. HOWEVER, THERE IS A WAY FOR BENEFICIARIES TO GET AROUND THE LAWS! Interestingly N.J.S.A. §3B:23-9, allows beneficiaries of an estate to come to a written agreement between themselves to alter the distribution of an estate. This agreement like any other contract can dictate a different means of distributing the estate from what the will provides. It can even supersede the direct distribution of assets under the Last Will (or no Last Will), subject to some stipulations, and conditions precedent.
Is an estate agreement subject to the executor's obligation?
Finally, and most importantly, for those beneficiaries and potential beneficiaries who are not a party to the agreement, the law also provides that the agreement is subject to the executor’s obligation to provide for beneficiaries who may lawfully be entitled to the estate in the future.
Probate Complications Caused By Multiple Beneficiaries
For many people who make wills, the most important provision is identifying the beneficiaries who will inherit financial assets, real estate, and sentimental personal property. These generous testators often want to leave something for everyone.
Common Problems For Heirs
Testators commonly identify many different heirs in a will, but at times, these numbers can become unwieldy. Such is the case in the recent passing of Frasier star John Mahoney. The Daily Mail reports that a will submitted to the probate court identifies 38 potential beneficiaries of Mahoney’s estimated $5 million estate.
Beneficiaries Who Control the Estate
One of the most complicated estate issues arises when one beneficiary is also in a position to control estate assets. A beneficiary who is appointed the executor or trustee has the authority to dispose of property and distribute the trust or estate’s assets. Other beneficiaries often challenge these actions.
Effective Litigation to Protect the Rights of Legal Heirs
Despite complications, legal heirs do have the right to enforce their inheritance rights in state probate courts.The probate litigation attorneys at Hackard Law have decades of experience in effectively challenging improper estate planning documents or estate administration, and helping heirs explore their legal options to determine the best method of asserting their legal rights.
What happens if you are named as a beneficiary of an estate?
As an estate beneficiary, you have certain rights. If you take the time to understand them, you will be better equipped to recognize violations of your beneficiary rights, as well as recognize when there is a need to retain the help of a lawyer to sue the executor of the estate.
Who is entitled to bring an action against a decedent?
Estate beneficiaries, just like executors and administrators, are entitled to bring an action if they believe the decedent’s property was damaged or unlawfully taken.
What Is an Estate Beneficiary?
An estate beneficiary is someone who stands to inherit a decedent’s assets; they are generally designated through a will. A trust beneficiary is someone who stands to inherit trust assets; they are designated through a trust.
Why is it important for estate beneficiaries to examine the accountings?
Estates can be complex, and as a result, so can estate accountings, which is why it’s crucial for estate beneficiaries to thoroughly examine the provided accountings for both errors and red flags (i.e., signs of financial misconduct or mismanagement of estate assets). If errors or red flags are discovered upon inspection, estate beneficiaries are entitled to challenge the accountings in court. Suppose it comes to light that an executor or administrator caused financial harm to the estate, estate beneficiaries are entitled to not only petition to have the executor or administrator removed but surcharged as well.
Why do you sue an executor?
Examples of valid reasons for suing an executor of an estate include: Executor failed to provide accountings to estate beneficiaries.
Why are estate beneficiaries important?
Estate beneficiaries have important rights to not only protect against inheritance theft but also to ensure that the worth of the estate is not compromised before the executor or administrator is permitted to distribute assets.
Why do we need a small estate affidavit in California?
Because the probate process is also expensive and burdensome for the courts, the California Legislature has created mechanisms by which probate can be expedited or avoided entirely. For instance, if an estate is worth less than $166,250, a Small Estate Affidavit can potentially be used to altogether avoid probate.
You Can Challenge a Trust
California law allows beneficiaries to challenge trusts. According to the Superior Court of California, three common reasons why trusts are challenged by beneficiaries include:
What Could Happen If You Challenge a Trust?
If you are a trust beneficiary and you challenge the trust then you may face significant consequences if you lose the legal challenge. Specifically, it is possible that you could lose your right to receive any of the trust property.
Common Problems For Heirs
Beneficiaries Who Control The Estate
- One of the most complicated estate issues arises when one beneficiary is also in a position to control estate assets. A beneficiary who is appointed the executor or trustee has the authority to dispose of property and distribute the trust or estate’s assets. Other beneficiaries often challenge these actions. One such case is resulting in heated lit...
Effective Litigation to Protect The Rights of Legal Heirs
- Despite complications, legal heirs do have the right to enforce their inheritance rights in state probate courts.The probate litigation attorneys at Hackard Law have decades of experience in effectively challenging improper estate planning documents or estate administration, and helping heirs explore their legal options to determine the best method of asserting their legal rights. We …