What Happens If a Beneficiary Cannot Be Located During Probate in Michigan?
An individual appointed to serve as the administrator or executor of an estate in Michigan must perform a variety of duties. These fiduciary obligations include locating beneficiaries designated in the decedent’s will or heirs under state intestate succession rules to deliver inheritances from the estate. But what happens when an administrator or executor cannot locate a beneficiary during a probate proceeding in Michigan?
The Legal Duty to Locate Beneficiaries
Under Michigan law, an executor or administrator has a responsibility to notify the heirs and beneficiaries of a decedent’s estate of the probate proceeding so that they can file legal challenges or claims and can receive any inheritance due to them under the decedent’s will or state intestacy law. In some cases, though, an administrator or executor may have some difficulty in locating beneficiaries, especially when a non-family member assumes the role of executor or administrator and does not know all the family members to whom the decedent left inheritances.
The law requires an administrator or executor to make diligent efforts to locate and notify all beneficiaries of the probate. A beneficiary who loses an inheritance due to an executor’s or administrator’s lack of diligent search efforts may have a legal claim.
Steps for Locating a Missing Beneficiary
The process of locating beneficiaries of an estate, primarily when a non-family member serves as administrator or executor, can involve several steps:
- First, they should review the estate planning documents, including the decedent’s will, codicil(s), and correspondence, along with any personal records like genealogical documents or family records.
- They can contact the decedent’s other beneficiaries and family members to identify and locate missing beneficiaries.
- Should family members not have current information for a beneficiary, they can search public records and online databases for more current contact information.
- As a last resort, they may hire a private investigator to conduct a more thorough search for a missing beneficiary, including contacting former employers, landlords, or neighbors for leads to track down the beneficiary’s current location.
Administrators/executors should keep detailed records of their efforts to locate a beneficiary to prove they acted with diligence in trying to find the beneficiary.
When a Personal Representative Cannot Locate a Beneficiary
When an estate’s personal representative cannot locate a beneficiary named in the decedent’s will, they and the probate court may pursue various options to protect the beneficiary’s interests. First, they may obtain the court’s approval to publish a legal notice of the probate proceeding and the beneficiary’s legal right to claim their inheritance in local newspapers where the beneficiary likely resides. The probate court may also appoint a guardian ad litem to represent the beneficiary’s interests (especially for beneficiaries under 18) or order the beneficiary’s inheritance placed in trust. Alternatively, the court may order the inheritance placed in escrow or deposited with the Michigan State Treasurer as unclaimed property.
Time Limits and Unclaimed Property Rules
Under Michigan’s unclaimed property rules, property or money becomes “unclaimed” after a specific dormancy period (three years for most types of property) when the custodian of the property cannot locate its rightful owner. The State Treasurer may auction off tangible items, such as vehicles or collectibles, two years after an item becomes unclaimed property. However, the state holds unclaimed money indefinitely, with the State Treasurer serving as custodian until the rightful owner comes forward to claim the funds.
Contact a Probate Attorney Today
If you’re having trouble locating beneficiaries or heirs as the administrator or executor of a decedent’s estate, an experienced probate lawyer can walk you through your options. Contact Bingham Legal Group PC today for an initial consultation with an estate planning attorney to discuss what happens when you cannot find a beneficiary of an estate during the probate process.