As you carry out the estate plan of your loved one, you face many responsibilities. The task that the beneficiaries will likely view as the most important is the actual disbursement of funds from the trust or the estate. As the trustee or personal representative, it is your duty to distribute the assets according to your loved one’s wishes. However, in order to protect yourself, it is important to obtain a signed receipt for a disbursement and release from each beneficiary who receives a distribution.
Five Reasons Why Obtaining a Receipt for a Disbursement is So Important
Obtaining the receipt for a disbursement and release is an important step and one that should not be overlooked. As the person in charge of the estate or trust, it is your responsibility to do so. The following are five reasons why obtaining these receipts is so important:
- Obtaining a receipt serves as a written record of the disbursement that was made to the beneficiary. It is a document that can verify the exact amount and date of a distribution.
- The receipt and release can shelter you from future obligations of the estate or trust that would require a return of a distribution.
- By having a beneficiary sign a receipt for a disbursement, you have a defense if the beneficiary later claims he never received a distribution.
- A receipt and release can typically relieve you from any personal liability in certain circumstances.
- The receipt and release is evidence that you have fulfilled your obligations.
We hope that this article about the importance of receipts and releases for distributions helped you as you fulfill your obligations to the estate or trust. If so, we encourage you to share it with your friends and family on Facebook. It may serve as vital information to a loved one who is in the middle of the trust or estate administration process themselves. Contact us today by phone at (714) 282-7488 or send us a message.