Probate in Texas is the legal process of settling the estate of a loved one. It includes validating the will, paying remaining debts and taxes, and distributing assets to heirs and beneficiaries. However, when you are still grieving, often the last thing you want to do is enter probate proceedings, no matter how much you want your loved one's last wishes to be carried out. Understanding what to expect during the process will help ease your stress. Here is a list of mistakes to avoid to help you prepare.
- Failure to seek legal guidance – Executors underestimate the complexity of Texas probate laws. These include court procedures and fiduciary responsibilities. Mistakes in filing paperwork, managing assets, and handling disputes may result in costly legal battles. Consulting an attorney can help streamline the process, reducing stress for both executor and beneficiaries, as well as ensure all legal requirements are met.
- Missing the probate filing date – Texas law requires that a will be filed with the court within four years of the decedent's passing. If this deadline is not met, the court may declare the will invalid and open to intestacy laws. This means the loved one's assets will be distributed according to state statutes, not the loved one's wishes.
- Failure to validate the will – In Texas courts, wills must meet specific requirements. These include proper signatures and witness requirements. If it doesn't meet these requirements, the estate may become subject to intestacy laws, meaning the state will distribute the loved one's estate according to statutes. An invalid will also leaves room for beneficiaries to contest the distribution of assets.
- Misinterpreting the terms of the will – Misunderstanding the terms of the will can lead to disputes among beneficiaries and incorrect distribution. This could also cause delays in the closing of the estate. Contacting an attorney could help avoid this issue.
- Failing to communicate with the beneficiaries – Executors are responsible for keeping beneficiaries informed about the probate process, as well as listening to their concerns. It may seem like a small thing, but not doing so could increase the chances of legal disputes and delays. It also prevents misunderstandings, provides transparency, and protects the estate from future claims from beneficiaries.
- Ignoring Family Disputes – Family conflict happens when heirs disagree with such things as asset distribution, executor decisions, and validity of the will. It can lead to litigation and delaying the probate process, as well as draining the estate's resources. If family disputes become a problem, seek legal assistance such as mediation.
- Mismanaging estate assets – Estates must be handled with transparency and accountability. Failing to do these things may result in financial penalties. Beneficiaries may also seek legal action to remove the executor and recover losses. Good recordkeeping can prevent this. Common examples of mismanaging accounts include:
- Failure to maintain property
- Improper investments
- Unauthorized distribution
- Failure to secure valuables from loss or theft
- Overlooking tax obligations – Texas does not impose an estate tax. However, federal estate tax laws might apply in certain areas. Working with an attorney will help make sure you are in compliance with the laws here. Executors are also responsible for filing the decedent's final tax return. Overlooking this may result in penalties and delays in estate distribution.
- Overlooking creditor claims – Probate laws require executors to settle outstanding debts owed by the deceased before distributing assets to beneficiaries. They must notify creditors and settle valid claims within a legally set time. Failure to do so may result in legal problems and delays in closing the estate. Ignoring claims or distributing assets before debts have been paid may leave the executor liable for unpaid debts, and improperly distributed funds may have to be returned to the estate to cover any outstanding obligations.
- Notifying creditors – For secured loans, such as mortgages, lenders, or car loans, executors must send a written notice via certified mail with return receipt requested to the last known address of the creditor. The notice must include the executor's contact information, as well as a statement addressing the creditor of their rights to present a claim. To notify holders of unsecured loans, such as medical providers, placing a notice in a local newspaper of general circulation in the county where the estate is being probated. It should include the decedent's name, probate court handling the estate, and instructions on how to submit a claim.
- Overlooking non-probate assets – Some items in an estate are not subject to probate. If you aren't familiar with going through the probate process, it would be a good idea to identify these items early to avoid combining them with the estate, causing delays and disputes. These include such things as payable on death assets, jointly owned property, such as real estate, or policies with named beneficiaries such as life insurance.
When a loved one dies, you want to make sure their last wishes are carried out. However, taking the steps to do so can be nerve racking at the best of times. Seeking the help of an attorney can help make the probate process go smoothly. Nancy Perry Eaton has not only had years of experience with probate, but she also understands the need to have someone you can trust by your side during this difficult time. Contact her at 254-221-8588.