Probate can be a hassle, expensive, and annoying, so why do it? If the mortgage keeps getting paid, and the bills are dealt with and no one seems to care, why should you pay and make problems for yourself? Are you procrastinating starting the probate of a loved one’s estate? Many people avoid starting a probate for a number of reasons. Here are some of the reasons we recommend to clients that they start the probate in a timely manner.
- Real property – while postponing probate with real property is possible, and people do, at some point, it will likely cause an issue. When a family member from this generation, or the next, goes to sell the property, re-finance, or enter into any kind of contract with the real estate, they will find they have no legal authority to do anything and probate will become necessary. In addition, procrastinating the probate may result in multiple probates if any of the heirs have also passed. For example, the mother of Fred and George passes peacefully at home. Fred was living in the home with her to care for her and continues living in the home after her death. Fred and George were both owners with her on her bank accounts, they paid all bills that continued to come in, Fred pays the mortgage and utilities every month, and the life insurance was paid equally to them both. Fred doesn’t want to deal with probate and George thinks it’s unnecessary. Fred has three grown children who live around the country and George has one child. Years pass and Fred and George eventually pass as well. The house sits, and someone in the family always pays the real estate taxes but no one really lives in it anymore. Finally, Fred’s oldest, Ron, decides it’s time to sell the home. When he begins the sale process, he discovers that it is still titled in Grandma’s name and he can’t sell it. Not only that, but now he may need to open a probate for Grandma’s estate, Fred’s estate, and George’s estate. Then, he has to get all of Fred’s children and George’s child to sign the petitions. Fred’s youngest child predeceased him, leaving two minor children behind. Ron now has to get a guardian for the two minor children to sign and when the sale proceeds are distributed, he will have to set up special accounts for their shares because they are minors. Obviously, Ron has a lot more work to do than Fred and George would have if they just probated Grandma’s estate. Fred and George would have signed the petition together, retitled the home, and closed the estate. Now, Ron has to track down five different people, get signatures, open three estates, and distribute the sale proceeds amongst many individuals. While Fred and George thought avoiding probate would be easier, by not probating Grandma’s estate, they created a bigger can of worms for their children and grandchildren.
- Surprise Creditors – part of the probate process is collecting all bills and creditors of an estate and giving them a defined time to make a claim. Instead of procrastinating, if the estate probated and is closed before a claim is made and proper notice was given, then the creditor cannot come back and demand payment. Grandma, unbeknownst to Fred, loved ordering from QVC while Fred napped. She even had a special credit card for her secret purchases. When Grandma passed, Fred didn’t know about the QVC card and so he didn’t make any payments. QVC didn’t see a probate, so they didn’t make a claim against the estate and Grandma’s card collected a lot of interest. Two years later a representative saw Grandma’s obituary, and told Fred he had to pay the credit card in full, with the two years of accrued interest! Because Fred and George never opened a probate and never had a creditor period, QVC can petition to have the court open a probate and demand that their claim be paid. Fred and George thought all the bills had been paid and weren’t anticipating another big payment. Now, they either find the money to pay QVC themselves, or they may have to sell the house Fred is living in to pay a creditor of the estate.
- Closure – while probate may be a hassle and cost money, by going through the process and wrapping up all of a loved one’s affairs, many family members find peace and closure through probate.
At Grissom Law, LLC we make probate as easy as we can for our clients. Our many years of experience mean that we know what documents to submit when to file and collect everything and how to field questions or concerns from other family members or creditors. We help you face probate together, rather than muddling through on your own.
Disclaimer
This Blog/Web Site is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide legal advice. By using this blog site you understand that there is no attorney-client relationship between you and Grissom Law, LLC.