Communicating with beneficiaries is one of the duties of an executor. If you are serving as an estate’s executor, you are required to keep beneficiaries adequately informed. Otherwise, they can claim breach of fiduciary duty, as they may believe you are not being transparent.
Therefore, it’s important to communicate effectively with beneficiaries. You need to:
Notify them that they are beneficiaries
After your appointment, you are obligated to notify beneficiaries of their appointment and their right to request a copy of the will and an accounting within 28 days. The notice should be given by personal service or ordinary first-class mail. Failing to do this is a breach of your duty.
Have open communication early
Once you have sent the notification, it’s important to have an open discussion with the estate’s beneficiaries about updates. For example, you can inform them that you will be sending bi-weekly emails and provide details of how and when anyone with an inquiry can contact you. This helps set expectations earlier, reducing the chances of misunderstandings.
Be honest
Always be honest when communicating with beneficiaries. Inform them about the estate’s progress and financial transactions.
Keep records of all your discussions
You should keep detailed records of your discussions with the beneficiaries. Save emails and letters of the information you shared and what they said to you. In addition to ensuring you provide consistent information to everyone, this helps you justify your actions and can prevent legal challenges.
An executor who fails to provide updates or respond to beneficiaries can be accused of a lack of transparency, which can be used as grounds for removal. When administering an estate, it’s essential to know the best ways to act to fulfill the wishes of the person who entrusted it to you.