When someone passes away, their estate typically includes all of their assets and debts. If the person had a will, it often names beneficiaries, meaning people who will receive portions of the estate.
However, when several beneficiaries are involved, dividing the assets in question can be relatively complex under Pennsylvania’s probate and inheritance laws.
Knowing how this process works can help you avoid unnecessary stress and ensure that your loved one’s wishes are honored. Keep reading to learn more, and reach out to an experienced West Chester estate lawyer if you need further assistance.
The Role of the Executor
The executor (or “personal representative”) is responsible for managing and distributing the estate according to the will’s instructions.
However, if there is no will, Pennsylvania’s intestate succession laws may apply instead. In any event, when multiple beneficiaries are named, the executor’s job generally becomes more detailed.
An executor’s fiduciary duties include:
- Identifying estate assets and securing them
- Paying outstanding debts, taxes, and final expenses
- Ensuring proper accounting for each asset
- Distributing the remaining property to beneficiaries according to the will
If the estate includes both liquid and non-liquid assets, such as real estate and family heirlooms, the executor may need to determine how to divide those fairly. This often involves appraisals and sometimes mediation when beneficiaries disagree.
Dividing Assets Among Multiple Beneficiaries
When an estate includes multiple beneficiaries, the division process depends on the terms of the will. If an equal split is required, for instance, the executor can sell the available property and divide the proceeds from there.
Alternatively, beneficiaries can agree to a different arrangement if everyone consents.
For example, one beneficiary might choose to keep a family home while another receives cash and other assets of comparable value. In some cases, however, disputes can arise over things like sentimental items that are difficult to quantify (more on this below).
If the beneficiaries cannot reach an agreement, the court may need to intervene. In Pennsylvania, each county’s Orphans’ Court oversees most probate disputes and can resolve issues related to the fair distribution of estate property.
Common Issues in Estates With Multiple Beneficiaries
When more than one person stands to inherit from an estate, disagreements can arise in many different circumstances.
Common challenges include:
- Unequal distributions: Some beneficiaries may feel shortchanged if the available assets aren’t divided evenly in value.
- Lack of transparency: The beneficiaries might accuse the executor of withholding information and/or mismanaging funds.
- Disputes over property sales: Some of the beneficiaries may want to sell, while others wish to keep inherited property.
- Debts and taxes: If the estate has significant liabilities, some beneficiaries may receive less than they expected.
Having a clear, detailed will can prevent many of these problems. However, sometimes further steps are needed, such as meditation and court processes.
How Hiring a Lawyer Can Help During This Process
When an estate involves multiple beneficiaries, small misunderstandings can escalate into major disputes. An experienced Pennsylvania estate planning lawyer can:
- Interpret the will and all of the applicable state laws
- Ensure the executor complies with their fiduciary duties
- Facilitate negotiations between the beneficiaries
- Prepare and file necessary probate documents
Ultimately, your attorney can aim to prevent costly litigation that could reduce the value of the estate dramatically. And, if absolutely necessary, they can represent your interests in court.
Contact a Pennsylvania Estate Planning Attorney for a Free Consultation
If you’re involved in an estate with multiple beneficiaries in Pennsylvania, understanding your legal rights and what to expect going forward is essential. Contact us at ThePeoplesLawFirm.com or by calling (484) 779-9282 for a free consultation. You can also message us online to get started with a free case review.
