When a loved one passes away, settling their estate can be a complex process, especially if you’re not familiar with their financial affairs. As a Calabasas estate planning lawyer, I often hear concerns from family members worried about missing assets or incomplete information. Let’s address these common worries and explore what happens in these situations.
The Challenge of Incomplete Information
It’s not uncommon for the person handling an estate (often called the executor or personal representative) to have limited knowledge of the deceased’s financial situation. This can happen for various reasons:
- The deceased was very private about their finances
- Assets were acquired long ago and forgotten
- Documentation was lost or misplaced
- The will is outdated or there is no will at all
Steps to Uncover Assets
If you find yourself in this situation, don’t panic. There are several steps you can take:
- Thoroughly search the deceased’s home: Look for financial statements, tax returns, and any documents related to assets or debts.
- Check mail and email: Look for statements or correspondence from financial institutions.
- Review tax returns: Past tax returns can provide clues about income sources and assets.
- Contact known financial institutions: Banks and investment firms may have information about other accounts.
- Use online tools: There are websites designed to help find unclaimed assets.
- Hire a forensic accountant: In complex cases, a professional can help track down hidden or forgotten assets.
The Probate Process and Asset Discovery
The probate process itself can help uncover assets. Here’s how:
- Public notice: Part of probate involves publishing a notice to creditors. This can sometimes lead to institutions or individuals coming forward with information about assets.
- Court authority: As the executor, you’ll have the legal authority to access the deceased’s financial information, making it easier to uncover assets.
- Sworn inventory: In many jurisdictions, you’ll need to file a sworn inventory of assets with the court. This formal process often helps ensure a thorough search has been conducted.
What If Assets Are Discovered Later?
It’s not unusual for assets to be discovered after the initial probate process is complete. If this happens you may need:
- A reopening of the estate: The probate case can often be reopened to deal with newly discovered assets.
- Supplemental accounting: You may need to file additional paperwork with the court to account for the new assets.
- Distribution to beneficiaries: The assets will typically be distributed according to the will or state law, just like the originally known assets.
The Importance of Due Diligence
As the executor, you have a fiduciary duty to make a reasonable effort to uncover all assets. This doesn’t mean you’re expected to be perfect, but you should be thorough and act in good faith.
Seeking Professional Help
Navigating these complexities can be difficult, especially during a time of grief. Just remember that it’s okay to not have all the answers right away. The probate process is designed to help bring clarity to these situations. If you’re facing these challenges, don’t hesitate to seek professional legal advice. Our Calabasas estate planning lawyers can help you navigate this complex process with confidence and ensure that your loved one’s affairs are settled properly and legally. If you have questions or need assistance, please contact us at 818-334-2805 to schedule a consultation.