If a loved one passes away, the following legal step would be to execute their will. This process of studying the will and dividing assets is known as probate.
Probate is a time-consuming process. It can take months, sometimes years, and involve many court appearances. There is also a lot of paperwork involved in probate.
However, you don’t need to worry if you have good local probate attorneys who will guide you through the process.
The attorney will gather evidence to determine the validity of the will, make a catalog of the deceased party’s assets, assign proper value to each item in the will, make a note of any debts or taxes against the deceased individual, and finally, distribute the asset according to the will or the court.
In some cases, the surviving family might hire an attorney after the individual’s demise, while in some cases, the individual might designate an attorney before their passing.
Although this seems like a simple process on paper, it is pretty complex. Certain mistakes are common in the probate process.
Here are five mistakes you should look out for and how you can avoid them:
1. Not keeping proper records
One of the most essential parts of probate is record-keeping.
An executor or administrator must keep meticulous records of every item mentioned in the will; the will can include assets like real estate, money, investments, jewelry, furniture, and copyrights.
All the assets will be taxed before they are distributed among the beneficiaries.
To prevent financial or legal risks, it’s crucial to implement any security measures necessary for any business when handling sensitive estate documents.
The best way to avoid this mistake is to start the record-keeping early.
Whether an attorney acts as an executor or a beneficiary is appointed executor, they should ensure all documents are up-to-date and complete.
The executor must record every detail of every asset so they can assign each item an appropriate value.
2. Failing to communicate
The deceased individual might leave some assets under a more generalized category, like “my grandchildren.”
In this case, the responsibility to communicate with each beneficiary falls on the will’s executor.
Failing to communicate or locate all the beneficiaries can lead to chaos and, eventually, litigation.
Similarly, poor communication and a lack of transparency in business dealings can lead to behaviors that will destroy a business partnership, causing conflicts and financial losses.
If an executor fails to find all beneficiaries and further fails to convey the estate planning, they will be liable for any loss.
Maintain constant communication with the beneficiaries to update them on the progress of the probate. Clear and consistent communication leaves little room for doubt and disputes.
3. Hiring the wrong representation
Probate is a complex and lengthy process, requiring a lot of patience and emotional energy.
It is always a good idea to hire help to execute a will.
This is where estate or probate attorneys come into play. You must hire an experienced probate attorney who will ensure the process is completed in an organized and timely manner.
A reasonable attorney will ensure you are not missing any tax deductions or savings.
Just as following the steps to hire a personal injury lawyer after an accident can make a difference in securing rightful compensation, choosing the right probate attorney is crucial to ensuring a smooth legal process.
Hiring the wrong representation can lead to an unorganized case, ultimately resulting in a loss for the beneficiaries.
4. Procrastinating on starting the probate process
While there is no need to start the probate process as soon as a loved one passes, you mustn’t wait too long.
Procrastinating on beginning the probate process can lead to personal liability.
Certain aspects of the process are time-bound; if the executor has to pay taxes on the assets, they are bound by a specific date before filing them.
If they fail to start the process on time, the beneficiaries could face additional penalties that will be recovered from their pockets.
5. Ignoring taxes and debts
The executor mustn’t fail to record any outstanding debts or taxes left behind by the deceased individual.
These variables will be recovered from the assets before the final amount is distributed among the beneficiaries.
If the executor fails to record the outstanding taxes and debts, it can lead to a personal liability for the beneficiaries. Penalties could be filed against the beneficiaries, leading to additional expenses.
Properly handling tax-related matters in probate is crucial to avoid complications.
Understanding how to remedy tax problems for less stress and worry can help prevent unnecessary financial burdens on beneficiaries
These probate mistakes are common, so avoiding making them is essential. Meticulous record-keeping and acting promptly can help save you a lot of trouble and resources.
