In probate, wills are proven and validated so the writer’s final wishes are followed and their estate is settled. Although it’s possible to avoid probate, most estates must go through the process before creditors are paid and inheritances are distributed. Probate is so common that the potential for mistakes is extremely high. Below, we will discuss the most significant pitfalls of the probate process.
Waiting Too Long to Start
There’s no timeline for grief, and reasonable people don’t expect representatives to start probate immediately. However, long delays can cause problems, including high taxes, penalties, and interest. When creditors go unpaid, they get anxious—and heirs may also wonder what’s happening with the estate. By hiring a probate attorney and understanding timelines, deadlines, and requirements, you’ll avoid this common mistake.
Not Interpreting the Will Correctly
A will is one of the most crucial estate planning tools in your arsenal, as it allows you to declare how you’d like your assets to be distributed. Wills are not always cut and dry, and interpretation leads to mistakes. An estate planning attorney will evaluate your will, help you rewrite it clearly, and eliminate the margin for error.
Not Keeping Accounting Records
Estate representatives, also called executors, must keep detailed records of estate assets. Accounting is essential at every step in the process, especially when distributions are completed, and creditors are paid. Effective probate accounting prevents mistakes and keeps estate representatives above reproach.
Failure to Communicate
Not keeping estate beneficiaries involved and informed during probate breeds suspicion and resentment. While some executors assume that heirs will be patient and forgiving, that’s not always the case. By keeping the lines of communication open, representatives assure others that they’re doing their job and fulfilling their fiduciary duties.
As an executor, you must regularly call and email beneficiaries, even if the estate’s status hasn’t changed. Keep records of all correspondence, address heirs’ concerns, and ask an attorney for help if needed.
Distributing Assets Early
Estate executors often feel pressure to distribute assets as quickly as possible, and pushy beneficiaries often threaten litigation. It’s important to remember that creditors have a full year after a person’s death to file claims against their estate. If the executor distributes assets too soon, they may be held responsible for unpaid debts.
Beneficiaries and representatives should realize that debts must be paid before inheritances are distributed, even if the assets in question are simple (such as savings accounts). Resisting beneficiaries’ demands can be challenging, but it’s part of the executor’s job. If needed, remind them that they’ll have to wait—or ask an attorney to do it for you.
Not Considering the Tax Consequences
Estate planning attorneys can help minimize tax liabilities by looking for loopholes and incentives. When assets are put into a revocable trust with a step-up, for example, the grantor maintains control while alive. When they pass away, however, the trust’s assets are probated at their previous value. With proper planning and help from an estate and probate attorney, you’ll pay fewer taxes and ensure your heirs get everything they deserve.
Not Hiring Legal Representation
Even a simple estate can quickly become complicated as tasks pile up and involved parties demand action. To stay in compliance with state law and reduce the risk of legal action, it’s advisable to retain legal counsel. A skilled attorney will handle every aspect of probate and bring it to a fair and equitable resolution. Contact us by phone or fill out our form to schedule a consultation with a probate lawyer.