Probate Pitfalls: Lesser-Known Mistakes Families Often Make

When someone you love passes away, coping with the process known as probate—the legal mechanism to validate a will and distribute assets to beneficiaries—can feel overwhelming. While most families envision common problems such as delays in paperwork or conflicts among the heirs, several pitfalls are not so obvious, which could create unwanted complications. Recognising these hidden estate pitfalls can help families not only through the process of probate but also save them additional stress and hassle during an emotional time.

Overlooking Non-Probate Assets

One common yet overlooked mistake is not realising that not all of the belongings of the decedent go through probate. Life insurance policies, retirement accounts, or real property owned as tenants by the entirety usually transfer directly to the named beneficiaries without any transfer through probate. Sometimes families unnecessarily include these assets in the probate process, which only slows down the process and creates confusion among beneficiaries about ownership of the decedent's belongings. Furthermore, a family should ensure that the designations of beneficiaries are current and know what (if any) items do not go through probate altogether. 

Ignoring Small Debts and Taxes

While larger debts tend to get dealt with relatively quickly, smaller debts, such as unpaid utility bills, unpaid credit cards, and forgotten taxes, can cause serious complications. Generally speaking, creditors are legally entitled to pursue a claim from the estate, and creditors can complicate the distribution of the estate to the heirs. Additionally, the family may not realise that failing to file a final income tax return or pay estate taxes can carry penalties and/or use up funds available to the heirs. In addition to the debts, anyway, once an accurate accounting of all the liabilities, regardless of size, is made, it can contribute to the efficient closure of the probate process.

Clearly, probate is not generally an easy process, but avoiding these three unwanted errors—forgetting about non-probate assets, ignoring smaller debts, and failing to communicate—can make the process much less of a burden. Educating yourself about the above three pitfalls, while having some related conversations with an experienced estate planning and probate lawyer in Lake Charles, Louisiana, will help prepare your family for the challenges ahead. By taking the initiative, you, as an educator, can not only accomplish your loved one’s wishes but also give family harmony a better chance at survival.