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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:

  1. 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.
  2. The receipt and release can shelter you from future obligations of the estate or trust that would require a return of a distribution.
  3. By having a beneficiary sign a receipt for a disbursement, you have a defense if the beneficiary later claims he never received a distribution.
  4. A receipt and release can typically relieve you from any personal liability in certain circumstances.
  5. 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 714-459-5481 or send us a contact form.

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Due to the CoVid19 virus California has issued a Stay-at-Home order. We understand how important the health and safety of our clients, and our staff is. We are complying with this order by continuing to work from our homes. While we are not in the office, we are still here to answer your questions, conducting consultations for review, and initial appointments by phone and email during normal business hours. We know that in this time, more than ever, it is important to have peace of mind about your estate planning. We are here to help you through this. Call our office number or email us and we will respond as quickly as possible.