Administering an estate in New York can be complicated on its own, but the process can become even more difficult when a beneficiary cannot be located. Executors and family members may be unsure whether the estate can still move forward, whether they have any legal obligations, and how long they should search for a missing heir. Understanding what to do when a beneficiary cannot be found is crucial after someone dies and leaves behind an estate. Continue reading for more information and contact an experienced Putnam County probate attorney today.

What is a Beneficiary?

A beneficiary is a person or entity that is legally entitled to receive money, property, or assets from an estate, trust, life insurance policy, retirement account, or other inheritance arrangement. It’s important to note that a beneficiary is different from an heir.

Beneficiaries inherit assets because they are typically named in a will, trust, life insurance policy, retirement account, or beneficiary designation form. Heirs, on the other hand, inherit through state intestacy laws when no valid will exists. They are relatives who inherit by default under state law.

What if a Beneficiary of an Estate Cannot Be Found?

In estate law, the executor is the trusted individual or institution named in a will to carry out the deceased person’s wishes and manage the legal and financial steps required to settle the estate. If a beneficiary cannot be found, the executor must conduct a diligent search in an effort to locate them. They have a legal duty to make reasonable efforts to find missing beneficiaries, including:

  • Reviewing old addresses and phone numbers
  • Attempting to contact old email addresses and social media accounts
  • Searching employment records
  • Contacting known family members
  • Searching public records and property records
  • Reviewing voter registration databases
  • Searching obituaries
  • Looking through online genealogy databases
  • Hiring private investigators
  • Hiring heir search companies
  • Publishing notice in a local newspaper

Probate generally cannot be completed until the court is satisfied that appropriate search efforts have been made. If the executor has made a substantial effort in good faith to locate and contact a missing beneficiary, the court may permit the probate process to proceed without them.

Some wills include alternate beneficiaries or instructions explaining what should happen if a beneficiary cannot be located or dies before the testator. If there is no will, or if the document does not include terms regarding missing beneficiaries, state law may determine how to proceed.

Executors generally cannot redistribute a missing beneficiary’s inheritance to others unless the court approves the distribution. Doing so without authorization could expose the executor to lawsuits, personal liability, and probate disputes. Beneficiaries do not necessarily lose inheritance rights because they cannot be located right away. In some situations, their rights may continue even after probate closes.

However, unclaimed funds may eventually be transferred to the New York State Comptroller’s Office. New York Estates, Powers and Trusts § 4-1.5 states that “abandoned property” will pass to the state. The rightful beneficiary may still be able to claim the funds later through the state’s unclaimed funds process.

Estate law can be complex. For more information and skilled legal advice, reach out to a legal professional today.