by Kristen Ishihara and Chris Parker with Ishihara & Parker Law Firm PLLC

When it comes to estate planning and inheritance, one of the most commonly asked questions is: "What is a beneficiary?" If you’ve ever wondered how to know if you are a beneficiary, what rights you have, or how assets are distributed, this guide will clarify the essential details.

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What Is a Beneficiary?

A beneficiary is a person or entity designated to receive assets from a will, trust, insurance policy, or other financial instrument. These assets can include cash, real estate, investments, or personal belongings.

How Do You Know If You’re a Beneficiary?

The most common scenario is when a will is involved. In Texas, after a will is probated (validated by the court), the executor has 60 days to notify all beneficiaries in writing. If you suspect you might be a beneficiary but have not been contacted, you can check public records by calling the county clerk’s office where the deceased resided.

Beneficiaries Under a Will

1. Probate Process – A valid will must go through probate before assets are distributed.
2. Notification – The executor must notify beneficiaries.
3. Public Record – Probate proceedings are public, meaning you can check with the county clerk’s office.

Important Tip: If a will is not probated, it has no legal effect. Simply possessing a will that names you as a beneficiary is not enough—you must ensure it is submitted to the court.

Beneficiaries Under a Trust

If assets are placed in a revocable living trust, the distribution process bypasses probate, making it a private affair. The trustee has a fiduciary duty to manage the trust properly and ensure assets are distributed according to the trust terms.

Key Differences from a Will:

• The trust remains private.
• Beneficiaries must receive an accounting upon request.
• Only named beneficiaries have the right to view the trust document.

What If There’s No Will or Trust?

When someone dies without a will (intestate), Texas law determines the heirs. Typically, assets go to the closest relatives, such as children or a surviving spouse, even if the deceased intended otherwise. This can result in unexpected distributions and disputes.

Other Common Beneficiary Types

• Life Insurance & Retirement Accounts: These require a designated beneficiary. If you are listed, the insurance company or financial institution will contact you. If they cannot locate you, funds may eventually be sent to Texas Unclaimed Property, which you can check online.
• Bank Accounts (POD – Payable on Death): If someone names you as a POD beneficiary, you can claim funds directly from the bank by presenting a death certificate.

Final Tips for Beneficiaries and Estate Planning

• Check your estate plan annually. Life changes such as marriage, divorce, or having children may require updates.
• Keep a secure record. A written list of financial accounts, policies, and contacts will make things easier for beneficiaries.
• Communicate your wishes. While it might be an uncomfortable conversation, letting your beneficiaries know about your plans can prevent confusion and disputes later.

If you believe you are a beneficiary and have not been notified, take the necessary steps to investigate. Understanding your rights ensures that you receive what was intended for you and helps streamline the inheritance process for everyone involved.

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