<p>Hi Im the beneficiary of an Estate that has not yet been dispersed. Im filling out the FSFA and CSS profile. In the last area of CSS supplementary questions is the following:</p>
<p>"Is either parent the beneficiary of a trust or estate? Yes No SQ-123
If yes, provide the type of trust (e.g., irrevocable, revocable, testamentary, etc.) the value, the terms, and other pertinent information about the trust.</p>
<p>Im confused if I need to answer yes or no to this question. I know Im a beneficiary of an Estate and proceeds will be distributed soon. But since as of today I dont have the proceeds
can I answer no to this question. Since it will be distributed in 2013 ?</p>
<p>The above answers are incorrect. You are indeed the beneficiary of an estate, regardless of whether you have the money in your possession yet. Per the above responses, no one would ever answer that question in the affirmative, because once an inheritance is received, it becomes an asset and its source would not be disclosed anywhere on the forms. The purpose of this question is to identify any additional assets to which you have an entitlement, regardless of whether they are in your hands.</p>
<p>Snooper, what is the status of the estate? Is there a will being probated? Have interim or final orders been entered by the court concerning distribution of the estate?</p>
<p>Here’s my view:</p>
<p>If you are named in a will that is being probated but the court has not entered an order, you would be a “legatee”, not yet a “beneficiary”. That’s because the whole point of probate is to determine whether the will is valid and will be enforced. Your situation may be straightforward, but wills can be contested, and you don’t have a legal right to the money (or become a “beneficiary”) until the court issues an order saying so.</p>
<p>On the other hand, if the court has already entered an order as to the distribution of the estate, and if the order specifies that you get $X, but the executor of the will is still taking care of doing whatever needs to be done first (for example, paying off creditors, selling real property) prior to distribution – then you would be a “beneficiary”.</p>
<p>thanks for all the input
To be more clear. I have 2 things going my father died and was the beneficiary of my mothers estate (from her will) which was never transferred out of Estate account into a trust. At this point her Estate account will be ready soon to be distributed without going into a trust. My Fathers Will is currently in probate. I’m listed in the will as a beneficiary. No money has been distributed yet.</p>
<p>MommaJ has the correct answer. For peace of mind, contact FAFSA or the college for whom you are filling out the form to find out how they want it classified.</p>
Again, as there is no trust, until there is an order from the probate court directing distribution to you, you are not yet a beneficiary. </p>
<p>Your situation is actually a good example of the fact that the term “estate” can mean more than one thing. There is the “estate” created by your mother’s will, which apparently was left to your father but not yet fully distributed at the time of his death; and now there is an “estate” created by your father’s will, which has not yet been completely probated. </p>
<p>I can’t tell from your post whether there has or has not yet been an order from the court that would convert your status from a mere expectancy to a beneficial interest. </p>
<p>I could easily come up with half a dozen different hypothetical scenarios in which a will or its specific terms might be invalidated by a court. I doubt that any apply to you – but the point is, that the COURT has to make that decision after steps have been taken to make sure that everyone who might have a claim has notice that the will is being probated and an opportunity to present their claims or contest the will.</p>
<p>snooper-
Do you have any siblings or anyone who might contest the will? Did your dad have any significant outstanding debts that need to/have yet to be be paid? Are you executor/executrix of the estate? Are there letters of testamentary yet?</p>
<p>While yes, there might be scenarios where the will might be contested, if the reality is that you are a primary or perhaps sole beneficiary and its just a matter of time before the funds are distributed, then it would seem improper not to identify these funds.</p>
<p>If, by the very words of the question, an interest in a revocable trust must be disclosed–an interest which could disappear completely–I think it would be a violation of the spirit of the question to fail to disclose an interest in a will just because it is still in probate. And I don’t think a narrow, legalistic view of the term “beneficiary” (and I question whether that word is even used in every state’s laws), is what the authors of the FAFSA and the CSS Profile had in mind. At some point common sense and yes, even ethics, have to have a place. The forms offer the opportunity to explain the circumstances, so if the OP will not receive the proceeds of the estate in time to use them towards college costs, or if the will is being challenged, that can be fully disclosed.</p>