Keeping beneficiaries adequately informed is one of your duties as an estate’s executor. It ensures you maintain transparency. Failing to effectively communicate with beneficiaries can get you into trouble. They may petition to remove you, as they may believe you are masking a legal violation, such as mismanagement of funds.
So, how should you communicate with beneficiaries? Here are some tips:
1. Send written notices
Once you admit the will to probate, send the beneficiaries a formal written notice to inform them that the estate has been opened and that they have been named a beneficiary in the will. The notice should also include your name and contact information.
Moreover, include a copy of the will admitted to probate and the official court order admitting it, or a summary of the gifts to the beneficiary. You are required to send this notice to eligible beneficiaries within 60 days of the will being admitted to probate.
You can specify the communication policy you will use when sending the notice to set communication expectations. For instance, all non-emergency communications will be done via email, and you will be sending updates at key milestones or weekly.
2. Provide a detailed estate inventory
It’s essential to create and share with beneficiaries a list of the estate’s property, assets and debts. Then later, provide a documented financial accounting of income received, the estate’s expenses, debts paid and asset distributions before closing the estate.
3. Respond on time to questions
When beneficiaries contact you, you need to respond promptly. Delayed responses can lead to conflicts. You do not want to give the impression that you are unresponsive to beneficiary concerns.
4. Keep a record of your conversations
Consider communicating with beneficiaries in writing, as it’s easy to document. When you have a phone conversation, send the beneficiary an email with a summary of the discussion.
Communicating with beneficiaries is a crucial role for an executor. Get more information on the best ways to perform your duties to protect yourself.