The wise bequest manager views inventories with a critical eye. Even though a personal representative must identify all the assets of an estate, omissions are common. For example, in recent months, the Kentucky Supreme Court has disciplined two attorneys for inventory-related misconduct. In Re Tabler, 2024 WL 1709625, _____ S.W.3d ____ (Ky. 2024); Kentucky Bar Ass'n v. Calilung, 671 S.W.3d 109 (Ky. 2023).
Here are some guideposts to keep in mind:
- Incorrect or incomplete identification of assets leads to lost/delayed gifts and/or re-opening of estates. The “lost property” companies that contact charities have frequently discovered undelivered testamentary gifts. The charities may eventually obtain them, but sometimes years later and only after paying a stiff finder’s fee.
- Although inventories list only probate assets, executors are responsible for identifying all property owned by the decedent. (This is necessary, for example, to determine tax obligations). Unfortunately, executors drop the ball on this task, especially when it is obvious that no estate tax will be due.
- It is appropriate to challenge the thoroughness of the executor’s search for estate property. No one is, or ever will be, in a better position to identify bank accounts, life insurance policies, retirement accounts and non-cash assets than the fiduciary. The bequest manager should not be timid about making inquiries.
- Although clearly the responsibility of the executor, there are infrequent occasions where a charity might consider conducting a formal asset search with respect to a decedent. This could be an option where an estate inventory seems incomplete, and the charity is to receive a percentage-based or residuary share. However, it is clearly the personal representative’s role to do this, and the charity should insist that he do so. (The fiduciary will also have access to assets that a third-party search may never turn up, such as the rare coin collection in the decedent’s storage locker.)?
Learn more about CCK Bequest Management at cckbequest.com.
