Understanding Beneficiary Rights in Massachusetts

When you receive an inheritance from a loved one, or benefit from a trust established for you, it may feel like a gift. Being given a check or piece of property with no work required on your part is the kind of thing people daydream about. But when you’re named as a beneficiary in a trust or in someone’s will, it’s important to remember that you’re not really getting a gift—you have a legal right to those assets.  There are a variety of laws around beneficiaries’ rights, and they vary somewhat from state to state. Here’s what you need to know about beneficiary rights in Massachusetts.

Rights of Beneficiaries in Massachusetts: Trusts

If you’re a beneficiary of a trust in Massachusetts:

• You have the right to receive distributions in keeping with the terms of the trust. This is one of your key beneficiary rights in Massachusetts, and in all states, but it’s important to understand that how assets are distributed varies from case to case. Because there are many, many ways to structure a trust, the only way to know what you’re really entitled to receive—and when you’re entitled to receive it—is to review those terms yourself. 
• You have the right to be kept reasonably informed about the trust. Even if you’re years away from being able to access any assets held in the trust, you’re entitled to know what’s there. Per Massachusetts trust law, a trustee must share their contact information with trust beneficiaries within 30 days of taking control of the trust. From this point on, the trustee has a responsibility to keep beneficiaries informed about any activity around the trust. One of your beneficiary rights in Massachusetts is the right to receive an accounting of the trust at least annually. This report can be formal or informal, but the trustee must provide annual updates about the trust’s current assets and value. Sometimes beneficiaries can also request additional accountings outside of the annual report.
• You have the right to hold the trustee accountable to their fiduciary duty. A trustee has legal ownership of the assets held in a trust, and that ownership comes with tremendous responsibility. They are required to act with the best interest of the beneficiaries in mind. As one of those beneficiaries, you have the right to make sure that your trustee is fulfilling their fiduciary obligations and not making decisions that serve their own interests. 

Rights of Beneficiaries in Massachusetts: Wills

If you’re named in the will of a Massachusetts decedent: 

• You’re entitled to receive property in a timely fashion—once the will has been probated. This is something that takes a lot of heirs by surprise. When a loved one dies, they expect to receive a check or physical property quickly thereafter. But please be aware that the estate must stay open for a year from the date of death to allow creditors to make a claim. Do not expect complete distribution until after a year has passed from the date of death.
• You have the right to hold the personal representative accountable. Just as a trustee has a fiduciary duty to trust beneficiaries, the personal representative (executor) of a decedent’s estate has a fiduciary duty to the estate. If you’re named as a beneficiary in the will and believe that the personal representative isn’t acting in the best interest of the estate, you have the right to petition the probate court to remove them. 
• You have the right to see the will. Even if the decedent told you what you could expect to inherit, the only way to know what you’re legally entitled to receive is to review the will. It’s public once filed with the probate court, but the personal representative should also share copies with named beneficiaries. 
• Despite being named in a will, you’re NOT automatically entitled to receive money. Creditors, taxes and fees get the first crack at an estate, so when all is said and done, you may receive a smaller inheritance than you expected. During probate, the decedent’s debts may have to be settled. That may mean paying out some of the estate to creditors, in addition to other costs associated with probate. In rare cases, there isn’t anything left for beneficiaries—part of the reason it’s so important to do estate planning in your own life. Planning ahead may help you protect your assets so you can pass them on to your loved ones outside of the probate process. 

Understanding beneficiary rights in Massachusetts can get complicated, especially if you live in a different state from the trustee who manages your trust or the decedent who named you in their will. It’s hard to know whether you’re doing everything you’re supposed to be doing. To make sure you get everything you’re entitled to, we recommend talking to an estate planning attorney who is experienced with Massachusetts law around trusts and wills. 

Ladimer Law can answer your questions about being a beneficiary in Massachusetts, and help you put your own estate plans in place so your beneficiaries get everything you want to leave for them. Contact me today with questions!

Jessica Pesce specializes in estate law and elder law. She has helped many people with their estate planning and tax planning since joining Ladimer Law in 2017. Jessica has been named a Rising Star by Super Lawyers three years running.