All the Right Heirs
Estate Trustees have an obligation to distribute the estate to the entitled beneficiaries. What is the appropriate standard of care required to identify all known beneficiaries? Is it always met?
Title Research reports that, in one instance, "alarmingly, for 50% of the cases we were asked to check, we found unknown heirs entitled to a share of the estate. Perhaps of greater concern for our client, the firm had been appointed as Personal Representative for these cases and furthermore statutory declarations had been signed by family members confirming the information supplied about their family tree was correct."
Some of the most common misconceptions include: (i) previous marriages being missed out and therefore half blood issue of those marriages being overlooked; (ii) individuals of the same surname incorrectly being identified as relatives; (iii) an incorrect assumption that blood related children adopted out of a family are entitled to a share of the estate; and (iv) siblings believing that their nieces/nephews are not entitled to a share of the estate because the previously entitled parent of the nieces/nephews has died.
One of the roles of the estate solicitor is to provide appropriate advice to the Estate Trustee in ascertaining heirs. Where the heirs cannot be ascertained or where there is a question as to who are entitled an application for advice and direction is the recommended course of action.
David M. Smith - Click here for more information on David Smith.
