Losing someone you love is never easy. In the midst of grieving, the last thing you want to think about is money and finances. But when a loved one passes away, important legal and financial matters must be addressed.
If you’ve been named as a beneficiary in a will or trust or stand to inherit assets through state law, you’ll need to take certain steps to claim your inheritance. I know this process can feel overwhelming during such a difficult time.
In this article, I’ll walk through the key steps every beneficiary should understand when claiming money and assets from a loved one’s estate. My goal is to help you feel fully prepared for this process so you can honor your loved one’s wishes.
Locating the Will and Trust Documents
The first step is locating your loved one’s key estate planning documents. This includes their last will and testament and any trust documents they created.
These legal documents dictate how the deceased person’s assets should be distributed to beneficiaries like you. So, getting your hands on them is critical.
According to a 2024 survey by Caring.com, 68% of American adults do not have a will or trust document. If your loved one falls into this category, the state intestacy laws will determine how assets are divided. More on this shortly.
If a will does exist, here are some places to look for it:
- Their home. Check filing cabinets, desks, nightstand drawers, and any safes. Look through any folders or envelopes labeled “estate planning.”
- Their safe deposit box. The will may have been placed in a safe deposit box at their bank for safekeeping. As the named executor or a beneficiary, the bank should provide you access.
- Their attorney’s office. Many attorneys keep a copy of a client’s will on file. Reach out to your loved one’s estate planning attorney.
- With the probate court. In some states, wills are filed with the probate court after a person dies. Contact the probate court in the county where your loved one lived.
If you locate a will, review it closely for instructions on distributions to beneficiaries like yourself. Also, look for information on who was named executor. This person will oversee the carrying out of the terms of the will. More on connecting with them shortly.
What If There’s No Will?
If your search comes up empty, your loved one likely passed away without a will or trust in place. This situation is called dying “intestate.”
Without clear instructions in place, each state has intestacy laws that determine who inherits assets like real estate, bank accounts, vehicles, and more. Typically, assets go to the deceased person’s closest surviving family members.
For example, in North Carolina, the order is:
- Spouse
- Children
- Parents
- Siblings
The probate court will oversee the distribution of assets according to intestacy laws. So, even without a will, you’ll still need to go through probate court proceedings to claim your share.
While this law-based approach divides assets, it may not reflect your loved one’s true wishes. Having no will also means the court will appoint an administrator, who may not be the person your loved one would have chosen to oversee their estate.
Connecting with the Executor or Administrator
Once you get your hands on the will or determine that state law will govern, it’s time to connect with the executor or administrator.
The executor is the person named in a will to carry out its instructions. They handle important tasks like:
- Notifying beneficiaries
- Gathering and valuing estate assets
- Paying any outstanding debts and taxes
- Distributing inheritances
If there’s no will, the probate court appoints an administrator to fill this role. Like an executor, they have fiduciary duties to manage the estate properly.
Reaching out to begin a dialogue is key. As a beneficiary, you’ll want to understand the timeline and process for receiving your share. Don’t be afraid to ask questions!
The executor or administrator should provide you with their full contact information. If you’re having trouble connecting, try:
- Contacting the estate planning attorney listed on any documents
- Reaching out to other involved family members
- Searching probate court records for their formal appointment
Developing a cooperative relationship with the executor or administrator early on can help the entire settlement process go more smoothly.
Learning Your Rights as a Beneficiary
Before assets can be distributed, there are a few steps that must happen:
- The will is submitted to probate court. The executor files the will, their appointment, and other petitions to start the probate process.
- Assets are inventoried. The executor must track down and determine the value of all the deceased person’s assets. This includes real estate, vehicles, bank accounts, stocks, and personal property.
- Creditors are notified. Public notice must be given to allow creditors to make claims against the estate for any unpaid debts.
- Taxes and expenses are paid. This includes estate taxes on assets over $12.06 million (in 2022), the executor’s fee, attorney fees, appraisal costs, and any outstanding bills.
Only once these steps are complete will the executor distribute inheritances to beneficiaries. State law determines the precise order and timeline.
But throughout the process, beneficiaries like you have certain rights:
- To be notified when probate begins
- To receive a copy of the will
- To object to any improper actions by the executor
- To be given an accounting of estate assets, income, debts paid, and distributions made
- To receive your inheritance in a timely manner
Don’t be afraid to speak up if you have concerns about how things are being handled. Experienced probate attorneys can advise you on your options.
Navigating the Probate Process
The probate process has a reputation for being lengthy and costly. But it provides important court supervision of an estate’s administration.
On average, probate takes 6-12 months in North Carolina. But for larger or contested estates, it can take several years.
Here are some key things to expect if the estate you’re inheriting from goes through formal probate:
- The executor petitions the court. To open probate, they file the original will, their appointment, and an inventory of assets.
- You’ll receive notice of the proceedings. Beneficiaries must be notified of the initial court hearing and given a copy of the will.
- Assets are appraised. An inventory and appraisal of assets is conducted. As a beneficiary, you should receive a copy.
- Claims from creditors are settled. The executor must publish notice to creditors and settle valid claims.
- Taxes are paid. Federal and state taxes are prepared and paid, including estate tax if applicable.
- The executor accounts to the court. They must file releases showing distributions to beneficiaries and account for any income/disbursements.
- You receive your distribution. Once accounting is approved, beneficiaries receive their inheritance per the will or intestacy laws.
The executor is required to keep you informed throughout the process. Don’t hesitate to ask questions if you feel left in the dark.
Watch Out for Non-Probate Assets
One thing to keep in mind is that not all assets go through probate. Accounts with a named beneficiary, like life insurance or retirement funds, bypass probate.
As the named beneficiary, you’ll need to contact these institutions directly to claim the funds. The executor should assist in transferring titles on non-probate assets as well.
Working with an experienced probate attorney of your own can help ensure you receive complete information on all assets you’re entitled to inherit.
Receiving Your Inheritance
Once taxes and creditors are paid, the executor can distribute your inheritance. Depending on the estate’s complexity, this may happen all at once or in portions.
The exact timeline varies by state. In North Carolina, the executor has 3 months from their appointment to pay out bequests under a will. However, partial payments are common for larger estates until the final accounting is approved.
Before you receive your full inheritance:
- Make sure you understand and agree with how it was calculated. Ask questions if anything seems off.
- Request an accounting showing estate income and disbursements to date.
- Sign a release and receive a receipt from the executor for your protection.
If real estate or other illiquid assets are involved, you may need to wait until they can be sold and converted to cash. It’s smart to get professional appraisals done for tangible property like jewelry or art.
For sizable inheritances, you may want to speak with a financial advisor. They can help you minimize taxes and invest the funds aligned with your goals.
What If You Disagree with the Distribution?
Beneficiaries have the right to challenge the executor if funds are improperly distributed or mishandled. Grounds for objection include:
- Failure to pay a bequest in full or in a timely manner
- Conflicts of interest, self
- Dealing, self-enrichment, or gross negligence by the executor
- Failure to properly inventory assets
- Mismanagement of estate funds
- Improper valuations of assets
- Making distributions not in accordance with the will or state law
If you believe the executor is mishandling the estate or denying you your proper inheritance, don’t delay in consulting an attorney. The court can compel the executor to account for their actions and even remove them from their appointment in egregious cases.
Honoring Your Loved One’s Wishes
Losing someone you love brings profound sorrow. But an inheritance can be their final gift to you.
With proper legal guidance, you can ensure their assets pass to you smoothly. This provides security for your financial future. More importantly, receiving a legacy they carefully planned for you demonstrates their enduring love. Honor their wishes by using any inherited wealth thoughtfully.
Let their gift help you embark on exciting new chapters in your life. And remember the meaningful memories that connect you forever.
The probate and estate administration attorneys at Cary Estate Planning help North Carolina families settle estates respectfully. They’re available to guide you through the probate journey.
If you need assistance claiming an inheritance, visit their website at https://caryestateplanning.com/.
