Beneficiary abuse occurs when a trustee, executor, or financial decision-maker mistreats or defrauds someone entitled to assets from a will or trust, often involving withholding funds, refusing to provide information, self-dealing (acting in their own interest), mismanagement of assets, or undue influence, leading to financial loss or delayed inheritance for the rightful heir. It can manifest as a trustee ignoring communications, living rent-free in trust property, or forcing beneficiaries to sign documents against their will, essentially denying them their rightful inheritance.
The executor has a fiduciary duty to ensure that beneficiaries know the estate's assets. Beneficiaries should be provided with an inventory of the estate assets, which may include real estate, personal property, bank accounts, and other valuables. Executors must also inform beneficiaries about estate debts.
Your beneficiary can be a person, a charity, a trust, or your estate.
Acting as an executor is a unique responsibility: you're coping with grief while handling the practical task of dealing with your loved one's estate. You're responsible for upholding the deceased's final wishes and ensuring every named beneficiary receives their inheritance.
The courts have previously found instances of executor fraud when someone paid themselves advances or unreasonable expenses from the estate, or a “salary” to act as executor, or treated a deceased's bank account as their own.
The Bottom Line. An executor, or personal representative, must follow the deceased person's wishes as they are laid out in the will. Anything done that is not consistent with the will can result in the beneficiaries taking legal action.
In England and Wales, it is not always possible or necessary for all beneficiaries to be paid at the same time after probate is granted. The executor's priority is to ensure that all debts, taxes and administrative costs are settled and that the will's instructions are followed precisely.
An executor has the authority and responsibility to manage a decedent's estate, gather the decedent's assets, pay their remaining debts, and distribute those assets to beneficiaries and heirs. However, the decedent's will and applicable probate laws can impose limitations on an executor's power.
A direct heir (also known as an heir apparent or lineal heir) is who would be considered the decedent's next of kin, and they are first in line to inherit through intestate succession. If the decedent had been married when they died, their direct heir most likely would be their surviving spouse.
The biggest mistake people make with wills is failing to keep them updated after major life changes (marriage, divorce, new children, significant assets), leading to outdated wishes; other huge errors include using vague language, choosing the wrong executor, not understanding that a will doesn't avoid probate, failing to meet legal signing requirements, and not telling anyone where the will is located. In essence, many people either don't make a will or create one that becomes invalid or ineffective over time, causing chaos and family disputes.
Common mistakes in beneficiary designations include not accounting for all your assets, confusing designations and wills, and failing to regularly review and update designations based on life changes.
The primary beneficiary is the named individual or organisation that is first in line to legally receive assets from the will, trust, or insurance policies when someone has passed away. These beneficiaries will hold the main claim to what has been outlined by the deceased.
As mentioned before, a primary beneficiary is the individual or entity first in line to receive assets from your will, trust, life insurance policy, or financial account upon your death. This designation ensures your assets are distributed according to your wishes.
While an executor cannot decide who gets what, they have many other powers. First, they must confirm their position as the executor in probate court. Once the court legally recognizes them as the executor, they have the power to act on behalf of the decedent's estate.
Importantly, an executor must act honestly, impartially, and in the best interests of all beneficiaries. They cannot favour one beneficiary over another, delay distributions without reason, or use estate funds for personal benefit.
Generally, only residuary beneficiaries are entitled to see a copy of the full estate accounts. However, it may be worthwhile to provide them in certain cases, in order to avoid the risk of a dispute arising. An executor of a will has a fiduciary duty to the estate and its beneficiaries.
Rights of Heirs to an Estate
As we noted, succession order is dictated by state law, but in most cases it follows spouse - children - descendants - close relatives. Keep in mind, there are a number of assets that ideally will be set up to pass directly to a beneficiary, even if a Will or Trust doesn't dictate it.
In most cases, adult children are not entitled to inherit their parents' money and property under the terms of their parents' estate plan. You may, however, have the right to receive a copy of their will if they have one.
Your biological father can pass on physical traits such as your biological sex, eye color, height, puberty timing, fat distribution, dimples, and even risk factors for certain health conditions. Some of these, like Y-linked traits and the sex-determining chromosome, come exclusively from dad.
Below are 9 of the most common mistakes your Independent Executor can make.
Many people assume an executor has full control over a will, but here's a common surprise: executors can't change the will's terms. They must follow its instructions as written.
Yes, an executor can withdraw money from a deceased person's bank account, but typically only after the bank is notified, the account is frozen, and the executor provides legal documentation like a Grant of Probate or Letters of Administration, allowing access to pay estate expenses (funeral, debts) and later distribute funds to beneficiaries; unauthorized withdrawals before this process are illegal. The bank will require paperwork, proof of death, and the Will to verify the executor's authority before releasing funds from the estate account.
There's no set rule for how often you'll need to update beneficiaries on the administration of the estate. Many executors choose to set expectations in the beginning by letting beneficiaries know how frequently they plan to provide information.
Key Takeaways
Most estates are finalised within 9 to 12 months, and it may take longer if: there are complex issues. the Will is contested. determine an entitlement in the estate (for example, if there is no Will).