Securing Your Inheritance: A Guide to Avoiding Probate Pitfalls
Probate is about as much fun as a root canal. The problem is that probate takes much longer, and those involved often encounter obstacles. The individual creating the will does so to ensure assets are transferred smoothly to the appropriate parties without delays or costly fees. When errors are made when drafting the will and other estate documents, problems arise. How can a person avoid these issues?
Create an Estate Plan
Many people pass away without a will or estate plan. The state then determines how the assets are distributed, which may not be what the deceased intended. To prevent this from happening, every person should have a will and possibly other estate documents. These documents outline the individual’s wishes so the executor can distribute assets as intended, and a beneficiary won’t need to worry about securing your inheritance.
However, another mistake many people make is failing to update these documents when something in their lives changes. They get married or divorced, have children, or make another significant life move and don’t update the records to reflect the change. Failure to do so can lead to problems during probate.
Name Beneficiaries
Many people forget to name beneficiaries for all assets. For example, they overlook retirement accounts or life insurance policies, so these assets go through probate. When this happens, family members may fight over who is entitled to the funds in these accounts. Every person needs to name beneficiaries for all accounts and update those beneficiaries as required.
Keep Records and Documents in Order
Some people aren’t good about keeping their records and documents organized. The estate plan executor must find the documents and records when they pass. If they struggle to do so, there may be delays and complications. Keep these records and estate planning documents in a safe and secure place. Many people today choose to store the documents online in the cloud and provide the executor and other trusted individuals with the account login information.
File the Will Promptly
Many states have a specific deadline for filing the will in probate court. When the executor misses this deadline, complications may arise. The executor may work with an attorney to guarantee nothing is overlooked and the will is filed on time.
Notify Creditors and Handle Debts
The executor must inform creditors of the deceased’s passing and settle debts before distributing assets. There is a legal process for addressing these debts, and this process must be followed. If it isn’t, disputes may arise and extend the probate process.
Communicate with Beneficiaries
Misunderstandings and disputes often arise when the executor of the estate doesn’t communicate with beneficiaries. Maintaining open and transparent communication is helpful, as the beneficiaries know what to expect and what is happening in the process.
Work With a Probate Attorney
Many people make mistakes when they try to handle probate independently. This process is complex, and if they don’t handle it regularly, they may not be very efficient either. An experienced probate attorney is priceless. They walk the executor through the process and ensure all legal requirements are met.
When executors know common pitfalls associated with probate, they can avoid them more easily. This streamlines the process while keeping stress to a minimum. Every person should work with an estate planning attorney to smooth the probate process, and executors should consult a probate attorney. Doing so helps preserve the deceased party’s legacy while providing beneficiaries peace of mind.
