If you are an estate’s personal representative, communicating with beneficiaries is one of your crucial responsibilities. You need to keep them adequately informed throughout probate. Failing to do this can constitute a breach of fiduciary duty, which can result in a legal process that can end in your removal from the role.
Thus, you need to be proactive when it comes to communication. Here is what you should communicate with beneficiaries:
The details of the estate
Beneficiaries have a right to detailed information about the estate. Firstly, after filing the petition for administration with the court, you should notify them that they have been named as a beneficiary in the will and that probate has begun.
The notification should also inform them that they can get a copy of the will upon request in writing. Consider having copies ready. This way, when you start getting requests, you can send copies immediately.
Another detail of the estate to share with beneficiaries is the estate’s inventory. Provide them with a list detailing the estate’s assets, their value and any debts owed.
The estate’s accounting
Ensure that beneficiaries are informed about all the money that comes into the estate when the deceased’s assets generate income. These include rental income, business income, interests from savings accounts, stocks and bonds, income from royalties for intellectual property or funds from legal claims. Additionally, you need to account for money generated by asset sales. For example, money from selling real estate, personal property or investments.
A detailed accounting also includes what’s paid out. These include debts, taxes, expenses of managing properties, and fees like legal fees.
Effectively communicating with beneficiaries about the estate and the decisions made can eliminate the chances of misunderstandings. Obtain more information about what to share with beneficiaries to have a smooth probate process.