Is five years too long to wait for my inheritance or an accounting?

Recently several readers have sent me questions about how long it takes for an estate to wind up, and how long they have to wait to get an accounting. For any executors reading this post, take note that beneficiaries are going to see lawyers and starting law suits, all because you won't send them financial information.

I'm going to start with this question:

My grandfather died five years ago and we have not received our inheritance from his estate. Is there anything we can do about this? Can we take the executor to civil court to get the accounting information or to find out what happened to the money?

Five years is too long without really good reason for delay. Before doing anything, be sure that you understand the terms of the will. For example, is the gift to you meant to be held in trust for a period of time or given to you when you reach a certain age, or for any other reason have a delay built in?

If that isn't the case, is there anything going on such as an estate lawsuit with another beneficiary that might cause a delay?

Have you directly asked the executor for an explanation? I expect you already have, but if not, starting today create a paper trail of your requests. Instead of calling on the phone, for example, send an email and keep your copy as proof that you tried to resolve this before turning to the courts. If you do make phone calls, log them. If you end up in court, you want the facts at hand.

If you can't get a satisfactory reply from the executor, you will likely need to hire a lawyer. This doesn't necessarily mean that you will end up in court, though I warn you that many people consider another person hiring a lawyer to be an act of hostility. If you are a residuary beneficiary of the estate, the first thing the lawyer will probably do (after reading the will) is write a formal letter demanding an accounting of the estate. Only residuary beneficiaries are entitled to a full accounting of everything that has gone on in the estate.

Even if you are not a residuary beneficiary, you are entitled to receive your gift under the will. And to receive it within a reasonable time! If for some reason you are never going to get your inheritance, you need to know why. For example, perhaps there were more debts than assets and everything had to be sold. If something like that is going on, then the executor should just tell you. I don't know why executors get so ridiculous about keeping important information like this to themselves when someone has a right to know. It only makes people suspicious and angry.

As I said, five years is too long without some good reason. Most estates are wound up in a year. Once the year is up, beneficiaries have the right to push for their inheritances.

If you can't get a satisfactory accounting and receive your inheritance as a result of the lawyer's demand letter, you do have the right to use the courts to enforce your rights. Maybe look into pooling the cost of a lawyer with other beneficiaries.

Along similar lines, I had a question from another reader who thought that the executor might be keeping a bank account open two years after probate in order to avoid having to give an accounting.

If that's the case, the executor is in for a surprise because the bank account doesn't have to be closed. That's completely irrelevant to producing an accounting, so don't let that stop you. Residuary beneficiaries have the right to demand a full accounting at any time during an estate.