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Protecting Your Legacy

Beneficiary designations may impact estate administration

by | Jun 2, 2017 | Probate & Estate Administration |

The details of a person’s estate plan can lay out his or her hopes for how the remaining estate will be addressed. Though Texas residents likely have the best of intentions when it comes to bequeathing items to family and other loved ones, if they do not consider their beneficiaries carefully, issues could arise. Unfortunately, surviving family members will likely have to handle the resulting estate administration complications.

One issue that could lead to administration problems is if an heir is a minor. Though children may be capable enough to inherit certain property, if an individual leaves a considerable amount of money directly to a minor, it is likely that the court will not consider the child able to properly manage the funds. As a result, an outside party could be appointed to manage the money until a certain time.

Time can also play a role in how beneficiaries are affected by assets left for them. If parties utilize wills to bequeath items, the estates will need to go through probate proceedings before any property distribution can take place. In many cases, probate can span over months or years, and therefore, it may be important to ensure that beneficiaries do not have an immediate need for any inheritance. 

When issues arise regarding a person’s intentions for their estate, the estate administration process could turn into a slow crawl. Therefore, Texas residents interested in leaving their families with as little conflict as possible may wish to find out how their desires could affect the administration of their estates. Experienced attorneys may be able to assist interested parties with such an endeavor as well as help surviving family address any administration issues.

Source: Forbes, “Pass On Your Assets Wisely: How To Choose The Right Beneficiaries“, Mark Eghrari, May 20, 2017