When a loved one passes away, it’s a difficult time for everyone involved. But often executors and beneficiaries are able to come together over a common goal: preserving the deceased’s legacy. Even so, it is not uncommon for disputes to arise between beneficiaries and executors during the administration and distribution of an estate.
At times, these issues can result from a lack of knowledge and communication from the executor. Executors are often labeled as intentionally withholding information from the beneficiaries, which usually is not the case. One or both parties may be going through some stage of the grieving process, which makes emotions run at an all-time high. Clear communication from the beginning is vital to reducing conflicts and arguments between executors and beneficiaries later. This may include verbal communication or the sharing of documents and agreements in electronic or paper format.
First, it is important that the executor of the estate clearly outlines to the beneficiaries his or her duties as an executor. This may include finding documents, hiring attorneys, applying for probate, notifying interested parties, managing the deceased’s property, paying creditors, filing tax returns and distributing assets to the beneficiaries. Second, the executor should share with the beneficiaries the overall financial picture. This includes disclosing to the beneficiaries all of the deceased’s assets, debts, outstanding claims and tax issues.
Transparency from the executor will help beneficiaries understand the executor’s duties in protecting, valuing, administering and distributing the estate. Additionally, transparency and honest communication will help reduce the occurrence of any surprises for the beneficiaries during the administration and distribution process. With the executor in charge of valuing and selling the deceased’s assets, such as homes and cars, the executor should make every effort to maintain a clear line of communication with the beneficiaries. Although beneficiaries are not in a position to make final decisions about the sale of the items, they will likely be inheriting any available assets.
Lastly, a good executor must be clear with the beneficiaries about what percentage of the assets they should expect to inherit. This is especially important in estates where multiple beneficiaries will be inheriting the deceased’s assets. For example, some beneficiaries may be expecting to inherit a larger percentage of the assets if another beneficiary owed the deceased money. A good executor will communicate all of these steps with the beneficiaries to avoid potential disputes, arguments and grudges.
Executors who follow these tips for effective communication and transparency will ensure a smoother estate administration and distribution process for all parties involved and reduce the headache of unnecessary conflicts with beneficiaries.
