A beneficiary is a person or entity named to receive assets in a will, trust, life insurance policy, or other estate planning documents following someone’s death. Beneficiaries may inherit money, property investments, or personal belongings. Though beneficiaries are typically not involved in the estate administration process, it’s important for beneficiaries to understand that they have legal rights during the probate and estate administration process in New York.
What Is a Beneficiary?
Beneficiaries are named in someone’s will to receive part of their estate. Upon the death of a loved one, the will is examined to determine what the individual left behind and who they left it to. This will then cause these assets to be collected and distributed to the proper individuals. These individuals are known as the beneficiaries of the estate.
They may also be a beneficiary of a trust. As a beneficiary, they do not have to worry about estate administration matters as an executor would. Instead, beneficiaries should just be involved in the distribution of the estate by collecting the right items.
A beneficiary can be named in a will, trust, retirement account, payable-on-death account, or life insurance policy. Additionally, the following individuals can be named as beneficiaries:
- A spouse
- A child or family member
- A friend
- A charitable organization
- A trust fund
- Any other legal entity
Key Legal Facts About Beneficiaries
- Beneficiaries inherit assets following someone’s death
- A beneficiary can be an individual or an organization
- Beneficiaries do not manage the estate
- Beneficiaries may have rights during the probate process
- Beneficiaries can inherit through both a will and a trust
- Multiple beneficiaries can share the same estate assets
How Is an Executor Different?
Executors are important during the estate administration process. An executor will be named in a will by the deceased individual to complete tasks for them. Usually, there is only one individual named to complete this role.
When the person dies, the executor is the one who should file the will with the Surrogate Court. This document should be filed in the county where the deceased individual lived.
Not only do the executors collect and distribute the possessions to beneficiaries, but they also have other duties to take care of. Executors are named to take care of any needs left behind by the deceased. Once the individual dies, the executor will have to pay any remaining debts or taxes that are owed.
With this role, the executor may have to meet with professionals, such as accountants or attorneys, to understand the extent of their duties.
In New York estate administration cases, executors and beneficiaries have considerably different responsibilities. Though beneficiaries receive assets from the estate, executors are legally obligated to manage the probate process and ensure they carry out the terms and conditions of the will.
Executor vs. Beneficiary Comparison
- Executor responsibilities:
- Filing the will with the Surrogate’s Court
- Identifying and inventorying estate assets
- Paying outstanding debts or taxes
- Distributing property to beneficiaries following debt payments
- Communicating with both beneficiaries and the court
- Beneficiary responsibilities:
- Receiving inherited assets
- Ensuring inherited distributions are correct
- Protecting inheritance rights
- Providing necessary information during probate when requested
What Is a Will?
A will is a legal document that provides information on what the deceased individual wanted for estate administration. Individuals draft wills before their death concerning the administration of their possessions after they die, and include directions on who will be in charge of their estate.
In order to be considered a valid will, these documents need to go through the probate process. This is to prove that the individual was in a clear state of mind when their will was made. It is important to make sure that no one takes advantage of them.
When the will is signed, witnesses will be present to ensure the individual is acting of their own accord. Individuals may wish to update their will for a variety of reasons. When the birth of a child happens, a divorce occurs, or the death of a spouse, individuals can update their will to fit their wishes.
Under New York law, wills generally must meet specific legal requirements to be considered valid during the probate process. As such, a lack of mental capacity, duress, coercion, and improper execution can all be grounds to challenge the will during probate, resulting in significant legal issues.
Valid New York Will Requirements
- The testator must be at least 18 years old
- The testator must fully understand the document they are signing
- The will must be voluntarily signed
- Witnesses must be present to witness the signing of the document
- The will must be properly executed in accordance with New York Estates, Powers and Trusts law
Can a New York Beneficiary Contest a Will?
In some instances, you may find that a beneficiary can question whether or not the will is legally valid. As such, if concerns arise surrounding fraud, coercion, or improper execution of a will, they may choose to contest the will in Surrogate’s Court. Potential reasons that a will may be contested include:
- The deceased failed to properly sign the will
- No witnesses were present at the time of signing
- The deceased did not have adequate mental capacity
- Someone improperly pressured the deceased into signing the documents
- Forgery or fraud occurred
Friendly Will Conest Considerations
- Not all disagreements justify a formal will contest
- Probate litigation can require both evidence and witness testimony
- Beneficiaries are subject to strict deadlines to challenge a will
- Surrogate’s Courts oversee New York probate disputes
Contact an Experienced Rockland County Estate Attorney
The Lauterbach Law Firm is proud to serve clients throughout Rockland County who are faced with legal matters related to estate planning, real estate, foreclosure defense, landlord-tenant law, business law, and criminal defense. If you require the services of an experienced team of attorneys, contact The Lauterbach Law Firm today to schedule a consultation.
