3 Reasons Why Informing Beneficiaries of Gifts In Your Will is Important
We all know the scene from TV and movies (including many a soap opera and telenovela): the family gathers around a conference table after a wealthy relative’s death, bracing themselves for shock and surprise as an attorney reads the will that tells them who gets the family fortune, who gets the family business, who gets the priceless painting, who gets the unwanted family memento, and who gets nothing.
While some version of that can and does happen in real life, there is no requirement or expectation that the contents of a will be kept secret until a person’s death. Similarly, there is no requirement that a person inform his or her beneficiaries of their gifts in a will, or to update beneficiaries when a will has been changed. That said, there are some good reasons why informing family and friends of their gifts in a will while you are still alive can be important.
It Will Make it Easier For Your Executor to Locate Your Beneficiaries
When you pass, the job of distributing the gifts listed in your will falls at the feet of the executor named in your will or who is appointed by the court. Among the many tasks that your executor will have is to locate the beneficiaries listed in your will, which can be easier said than done. If a beneficiary has a common name or does not have a listed address (and, remember, people do not always open their email from unrecognized) or phone number, this process can be difficult and lead to extra costs for your estate.
By having your beneficiary aware of his or her gift ahead of time, the beneficiary can reach out to the executor which saves time and money.
Your Beneficiary Will Know to Take Action to Receive the Gift
Related to the first point, a beneficiary who knows he has a gift coming to him from your will can be prompted to take the action necessary to retrieve the gift from your estate. Beyond just issues with identifying and locating the beneficiary, the gift might slip the cracks as your estate goes into probate. In extreme situations, an executor or other party may intentionally or carelessly take the property from your estate before it goes to the proper beneficiary.
If your niece beneficiary knows that she is supposed to receive your diamond necklace, there is less of a chance of the executor, your housekeeper, your sister-in-law, or any other party walking off with the necklace before your niece gets it.
You Can Avoid Disputes and Confusion After You Are Gone
Finally, disputes do often arise in probate over gifts for a variety of reasons. One party might claim that the will is a fake, that the deceased was unduly influenced to make a gift, that a new or updated will exists, or that the deceased actually meant this necklace, not that necklace.
If the intended beneficiary knows what is actually supposed to be coming to him or her, that person can confidently take action to claim their gift while mitigating the possibility of dispute.
Create a Will or Trust With a Pasadena Estate Planning Attorney
Estate planning and probate attorney Christopher B. Johnson, located in Pasadena, California, has years of experience in all aspects of estate planning, and works with clients from all walks of life to create estate planning tools that reflect their needs and those of their beneficiaries. To request an immediate consultation, contact him today at (877) 755-9178.