In addition to their financial assets, such as bank and investment accounts, your loved one’s estate will likely include some or all of the following:

• Retirement assets, such as IRAs and 401(k) accounts
• Insurance and annuities
• Business interests and investment real estate
• Personal assets, such as their home(s), a boat or art collection

The role of a beneficiary is relatively simple: to receive assets from the estate - not to manage the estate or distribute its assets. The executor (for a will) or the trustee (for a trust) is legally responsible for managing the administrative tasks, paying debts and distributing the assets.

A will is a legal document that specifies how assets should be distributed after their death. It also names the individual, known as the executor, who’ll be in charge of managing the estate and distributing assets.

When a loved one passes away, the person’s will, along with a petition, must be filed in the court with the jurisdiction over the estate. This process, known as probate, ensures that everything is handled correctly according to state law. If no will or other document naming an executor or personal representative to settle the estate exists, the state will step in to appoint an administrator who will determine how any taxes are to be paid and remaining assets distributed.

Trusts are legal arrangements wherein a trustee holds assets for the benefit of the trust’s named beneficiaries. These instruments can be valuable estate planning tools that enable assets to pass directly to trust beneficiaries, pursuant to the trust’s terms, rather than probate proceeding. 

When reviewing the trust, pay attention to how assets are distributed:

• Are the assets distributed all at once, or in installments over time?
• Does the trustee have full discretion over distributions? If so, you can't demand a withdrawal.
• Can the trustee distribute both income and principal from the trust?
• Will the trustee be distributing assets to a single recipient, or can they choose among multiple beneficiaries?

If you’re the beneficiary of a trust and wish to request a discretionary distribution, get in touch with the trustee to understand their process for requests and any specific forms they may use. Generally, the process is relatively straightforward and will require you to:

• Confirm with the trustee what documentation will be needed to support your request.
• Make sure your written request includes all essential information, such as the legal name of the trust, the specific amount you're asking for and the reason for the distribution.
• Include the required supporting documentation with your request, such as invoices and receipts.
• Provide payment instructions that clearly state how and where the funds should be sent, including your bank account details or the vendor's payment information.
• Use the trustee’s required method to submit your request (typically first-class mail).

The trustee will review your request and the documentation. If approved, they trustee will then make the distribution as specified.

1. Right to information: You are entitled to a copy of the trust document, especially once it becomes irrevocable.
2. Right to accounting: You can request a detailed financial report of the trust's assets, income, expenses and distributions.
3. Right to enforce the trust: If you believe the trustee is mismanaging assets or not following the terms, you can take legal action. 

As noted above, many assets such as life insurance and retirement accounts transfer outside of a will or trust through direct beneficiary designations. For these assets, the named beneficiary(ies) will inherit the asset. To ensure you receive your rightful inheritance:

Checklist:

Ask for copies of the forms. The executor or trustee should be able to provide you with copies of the pertinent beneficiary forms from all relevant financial institutions. In some cases, forms must be obtained from the financial institituon.

Know your status. Forms can name one or more primary beneficiaries (first in line) as well as a contingent beneficiary (who inherits if the primary cannot).

Know the process. These accounts typically transfer the funds directly to you without having to go through the probate process. 

A durable power of attorney (POA) gives a designated person the authority to act on someone’s behalf in financial and legal matters if they become incapacitated. This can include everything from paying bills and accessing bank accounts to filing taxes.

Start by identifying the principal (the person granting the power to act on his or her behalf) and the agent (the person who’s given authority to act on behalf of the principal). Note the effective date and pay close attention to the language that describes the scope of the granted authority (general or limited) for financial or medical decisions.

Determine whether it's a durable POA (remains effective even after incapacity) or a springing POA (takes effect after a specific event, such as a doctor's declaration of incapacity). The document will also specify when the authority ends and any restrictions or instructions for the agent.

• A general POA grants broad authority, allowing the agent to handle a wide range of financial or legal matters for the principal.
• A limited POA grants authority for a specific purpose or for a specific period (such as selling a house or managing finances during a temporary absence).

Lastly, look for any limitations on the agent's actions, such as not being able to make gifts, use assets for personal gain or make certain types of risky investments. And keep in mind that the laws and forms for a durable power of attorney will often vary by state, so be sure to check your state's specific requirements.

While the executor will manage your loved one’s estate, it’s important to stay informed by requesting occasional updates and raising questions or concerns you may have. Be respectful and patient, particularly when administering a complex estate.

Estate settlement can take time. During that period, consider working with your financial and tax advisors to evaluate potential tax implications and to develop a strategy for managing any assets you may receive.