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Why Timeshares are One of the Worst Assets to Inherit

Timeshares are often marketed as affordable vacation ownership. However, what happens when they become part of an estate? Many heirs are surprised to learn that timeshares do not function like traditional real estate assets—instead of inheriting a valuable investment, they may be left with ongoing maintenance fees, restrictions on resale and unexpected legal obligations.

Understanding the downsides of inheriting a timeshare can help beneficiaries decide whether to keep, sell, or disclaim the property.

The Hidden Costs of Inheriting a Timeshare

Unlike traditional real estate, timeshares come with mandatory fees and restrictions, making them a financial liability rather than a valuable inheritance.

1. Ongoing Maintenance Fees

One of the most significant downsides of inheriting a timeshare is the never-ending maintenance fees, which must be paid whether you use the property. These fees:

  • Increase annually, often outpacing inflation
  • Can amount to thousands of dollars per year
  • Must be paid even if the timeshare goes unused

Failure to pay can result in collections, credit damage, or even foreclosure.

2. Difficulty Selling or Transferring Ownership

Many assume they can sell an inherited timeshare. However, resale is notoriously difficult. Timeshares:

  • Depreciate quickly and often have little to no market value
  • Have limited buyer demand, even for desirable locations
  • May include contract clauses that restrict resale or transfer options

Some heirs spend years trying to offload an unwanted timeshare, only to realize they are stuck paying fees indefinitely.

3. Potential Legal Liabilities

If a timeshare is deeded property, heirs become legally responsible for all associated costs. This means:

  • The management company can take legal action to collect unpaid fees
  • Inheritance laws may force multiple heirs to share financial obligations
  • Some contracts bind heirs indefinitely, making it hard to walk away

Even if a timeshare seems appealing initially, the long-term costs and restrictions can outweigh any perceived benefits.

How to Avoid Inheriting a Timeshare

1. Disclaiming the Inheritance

Heirs are not required to accept a timeshare inheritance. If an estate includes an unwanted timeshare, beneficiaries can legally disclaim it by filing a formal refusal with the probate court before taking ownership.

However, disclaiming must be done before using the timeshare or making any payments, as this can be seen as accepting ownership.

2. Negotiating a Deed-Back with the Resort

Some resorts allow heirs to return the timeshare through a “deed-back” program. This involves:

  • Contacting the timeshare company to check eligibility
  • Submitting necessary paperwork to relinquish ownership
  • Paying any final fees required to exit the contract

Not all resorts offer this option; some may charge a fee for releasing ownership.

3. Seeking Legal Assistance to Exit a Timeshare

If a resort refuses to take back the timeshare, an estate planning attorney can help explore other legal options. This may include:

  • Reviewing the contract for loopholes
  • Negotiating with the management company
  • Exploring legal exit strategies that protect the estate from liability

Many families assume they must accept an inherited timeshare. However, it may be possible to legally remove this financial burden with the right approach.

Should You Keep an Inherited Timeshare?

While most heirs choose to avoid inheriting a timeshare, some may find value in keeping one under the right conditions. It may be worth keeping if:

  • The location is desirable and frequently used by family members
  • The maintenance fees are affordable compared to rental costs
  • The contract allows for flexibility in usage and resale

However, long-term costs and restrictions should be carefully evaluated before deciding.

Protect Your Estate from Unwanted Assets

If you or a loved one owns a timeshare, addressing its future in an estate plan is essential to prevent heirs from inheriting an unwanted financial burden.

Our law firm helps clients plan for complex assets, negotiate timeshare exits and protect their heirs from unnecessary liabilities. Schedule a consultation today to discuss your estate planning options.

Key Takeaways

  • Timeshares come with lifelong financial obligations: Maintenance fees increase yearly and must be paid whether the timeshare is used.
  • Reselling a timeshare is difficult: The market for used timeshares is small, and many contracts restrict transfer options.
  • Legal liabilities can pass to heirs: If a timeshare is accepted, the beneficiary is responsible for all associated costs and fees.
  • Heirs can disclaim a timeshare inheritance: Legally refusing the inheritance before assuming ownership can prevent financial responsibility.
  • Legal guidance can provide exit options: An estate planning attorney can help navigate disclaimers, deed-backs and contract negotiations.

Reference: Yahoo Finance (Aug. 16, 2024) “Inheriting a timeshare can be bad news. Here’s why, and how to avoid it”

Decluttering after Loved One’s Death: A Practical and Emotional Guide

Losing a loved one is never easy, and handling their estate can feel overwhelming. Beyond probate’s legal and financial aspects, families must also address the personal belongings left behind. Every item holds memories, and deciding what to keep, donate, or discard can be emotionally challenging.

While decluttering is necessary, it does not have to be overwhelming. With patience, organization and legal guidance, families can navigate this process in a way that honors their loved one’s legacy, while ensuring a smooth estate administration.

Understanding the Probate Process and Personal Belongings

Before decluttering, spend time learning how probate affects the distribution of assets. Probate is the legal process that ensures debts are paid, and assets are distributed according to a will or state laws if no will exists.

When to Begin Decluttering

Many families are urged to begin sorting through belongings immediately after a loved one passes. However, specific legal steps must be followed first. The executor of the estate—or administrator if there is no will—must:

  • Verify that a will exists and file it with the probate court
  • Obtain legal authority to manage and distribute the deceased’s assets
  • Identify which items are part of the probate estate and which pass directly to beneficiaries

Some belongings, such as jointly owned property or accounts with named beneficiaries, may not be subject to probate. Consulting with a probate attorney ensures that assets are handled correctly and that families do not unknowingly dispose of legally protected items.

A Step-by-Step Approach to Decluttering

Step 1: Create an Inventory

List all significant belongings and sentimental items, especially those with financial or legal significance. This includes:

  • Jewelry, antiques and collectibles
  • Financial documents and insurance policies
  • Family heirlooms and personal memorabilia

An inventory helps prevent disputes among family members and ensures that valuable or sentimental items are accounted for before decisions are made.

Step 2: Identify What to Keep, Donate, or Discard

After creating an inventory, begin sorting belongings into categories. While every family’s process will be different, a structured approach can make decluttering more manageable:

  • Items to keep – Family heirlooms, meaningful photographs and personal mementos
  • Items to donate – Clothing, furniture and household goods in good condition
  • Items to discard – Broken, outdated, or unusable items

Open discussion can prevent conflicts if multiple family members want the same item. Some families choose to rotate selections, allowing each person to select keepsakes.

Step 3: Seek Professional Guidance for High-Value Items

Some belongings may hold significant financial value. Consider having them appraised before selling or donating items such as artwork, antiques, or real estate. A probate attorney can also help determine whether certain assets require special handling under the law.

Emotional Challenges of Sorting through a Loved One’s Belongings

Managing Grief During the Process

Decluttering after a loved one’s death can trigger unexpected emotions. Items like handwritten letters, old clothing, or favorite books carry deep sentimental value, making it challenging to decide what to part with. It’s essential to recognize that grief affects decision-making, and taking breaks or seeking support when needed is okay.

Avoid Family Disputes

Inheritance disputes are one of the most common challenges during estate administration. Even if a will is clear, emotional attachments can complicate decisions. To avoid conflict:

  • Hold a family meeting to discuss how belongings will be divided
  • Use written agreements when distributing valuable items
  • Consider mediation or legal assistance, if disagreements arise

Clear communication and legal guidance ensure that the process remains fair, respectful and free of unnecessary conflict.

When Is Legal Assistance Needed?

While decluttering is a personal, family-driven process, some situations require legal intervention. It may be time to consult a probate attorney if:

  • There are disputes over high-value belongings or sentimental items
  • Uncertainty exists about which belongings are included in the probate estate
  • Legal documents, such as wills or trusts, need to be reviewed to ensure proper distribution

A probate attorney ensures that all legal obligations are met, while helping families move forward without unnecessary delays or disputes.

Plan for College and Protect Your Assets

Balancing college savings, estate planning and financial aid eligibility requires careful planning. Schedule a consultation today to ensure your family’s financial future is secure, while maximizing education opportunities for your children.

Key Takeaways

  • The probate process impacts decluttering: Some belongings must go through legal steps before being distributed or removed.
  • A structured approach makes decluttering easier: Creating an inventory and sorting items into categories reduces stress and ensures fairness.
  • Emotional attachments make decision-making difficult: Recognizing the role of grief and allowing time to process emotions is essential.
  • Family disputes can arise over sentimental belongings: Open communication and, if needed, legal mediation can help prevent conflicts.
  • Legal assistance ensures smooth estate administration: A probate attorney can clarify ownership, resolve disputes and guide families through complex legal requirements.

References: Joseph Stern, M.D. (April 18, 2023) “Grief Cleaning: How to Separate Memories from Things While Decluttering” and Empathy “It’s the little things: Dealing with keepsakes”

An Estate Plan To-Do List to Get Planning Done

Even if your New Year’s resolutions have fallen by the wayside, don’t let the resolution to create or revise your estate plan pass without tackling it. A recent San Francisco Bay Times article, “Kickstart 2025 With 5 Estate Planning Resolutions to Secure Your Future,” offers a step-by-step list of the tasks to complete your estate plan.

Start by locating your estate planning documents. Review them to be sure they’re up to date. If your will includes people no longer living or beneficiaries you’re no longer feeling generous towards, you’ll need to make those changes.

Review your estate plan with an eye on the people you’ve named for specific roles. Will the executor or trustee be a good fit? What about the person you’ve named as Power of Attorney? Your estate plan should also include a Healthcare Proxy. As you age, you need to be sure the people in these roles can still physically get to the bank or the hospital and navigate online banking or healthcare portals on your behalf.

Digital assets are now part of everyone’s life. However, not everyone addresses their digital assets in estate plans. You’ll need to review and record your digital accounts, from emails to social media to cryptocurrency, and create a list of the accounts, login information and passwords. If you have two or three-factor identification, you’ll need to be sure your digital executor can access your mobile phone or email to confirm their identity. Many people use password managers to gather their information. However, a notebook will do as long as your digital executor knows its location.

If you haven’t reviewed your healthcare directives in a while, you’ll want to do so. Your wish to be kept off any life-support systems while in your thirties may have changed as you have gotten older. After COVID, many people who would have never wanted to be on a respirator learned that it was lifesaving, not life-ending. Speak with your healthcare proxy about your wishes, so they know what you want and your estate planning attorney to ensure that they are documented properly.

An experienced estate planning attorney can help you avoid or minimize the probate process. For instance, placing assets in a trust can take the asset out of your taxable estate if the right trust is used. The assets in the trust won’t go through probate and will remain private. If using Payable on Death accounts makes sense for your estate plan, be sure that the accounts you want to transfer to someone else on your death are titled correctly.

An estate planning attorney will guide you through the process to ensure that you have the right documents, so your loved ones can help you if you become incapacitated and know your wishes when you die. It’s a gift to those you love, easing their burden and building your legacy.

Reference: San Francisco Bay Times (Feb. 5, 2025) “Kickstart 2025 With 5 Estate Planning Resolutions to Secure Your Future”

What are the Biggest Mistakes People Make with Estate Plans?

Ask any estate planning attorney for a horror story and step back as they come flooding out. Moms who leave millions to a veterinarian to care for a beloved cat or uncles who grabbed and kept a half-million-dollar insurance policy intended for a son are just a few examples.

When your estate plan isn’t properly prepared, many things can go wrong, according to a recent article from Kiplinger, “Wills Gone Wild: How to Avoid Estate Planning Disasters.” Assets can end up with the wrong people, or beloved children can be disinherited entirely. A bungled do-it-yourself will can lead to a distant cousin inheriting your entire estate, while a life-long partner ends up homeless and impoverished.

If you intend to protect those you love, you’ll need to sit down with an estate planning attorney and create a last will and testament and other estate planning documents. Without a will, you can be sure family discord will follow your passing.

Aretha Franklin provides one lesson on what happens when there’s no formal will. Not one but two handwritten or holographic wills were found in her home in Detroit after she died. One, dated 2010, was found in a locked cabinet, while the second was found under a couch cushion, dated 2014. There were four sons, and all disagreed about which one was valid. The matter went to court, with a judge ruling the 2014 will was valid. Not all states accept holographic wills and leaving more than one copy around the home doesn’t guarantee anything but a family fight and legal expenses.

Many people are testing online wills. However, the unintended consequences are very costly for loved ones. One father decided he would create a will without an estate planning attorney. When he died, instead of dividing his estate equally between three adult children, all his property and assets went to the children and the grandchildren. Each of his three children had children, so what he intended to be a simple three-way split ended up being divided into many small gifts.

Second and subsequent marriages can complicate estates. Estate planning attorneys all have stories about remarried people who want their estate to go to the new spouse but forget to take care of their children from the first marriage. When the second spouse inherits the entire estate, it’s easy enough to rewrite the will, and the deceased spouse’s kids are disinherited. A surviving spouse is under no legal obligation to maintain an old will or to give assets to stepchildren. Estate planning attorneys know how to use trusts and other strategies to protect the surviving spouse and the biological children.

Pets are often part of estate planning disasters. One attorney tells the tale of a client estranged from her only child, a daughter. She wanted to leave everything in her estate to her cats. However, something went very wrong, and her veterinarian inherited $3.5 million. In this case, the vet was an upstanding citizen and worked with an estate planning attorney to ensure any monies left after the death of the cats went to animal charities. However, there was no legal requirement for the vet to do so.

Elderly people are often preyed upon by their trusted caretakers. One horror story concerned two elderly men who lived together and shared a home care nurse. When one of the men was hospitalized, the caretaker and her husband came to the home and exploited the second man. The caregiver convinced the elderly man to make her a beneficiary of a $500,000 CD and joint owner of a lakefront vacation home.

When it comes to estate planning, the only way to avoid a nightmare legacy is to meet with an experienced estate planning attorney and have an estate plan created. Estate planning attorneys have seen more wild tales than you can imagine and can ensure that you don’t become one of them.

Reference: Kiplinger (Jan. 29, 2025) “Wills Gone Wild: How to Avoid Estate Planning Disasters”

Think of Estate Planning as a Gift to Loved Ones

When you think of a gift for your family, you might think about matching sweaters or a family vacation. However, the gift of an estate plan will be remembered because it demonstrates your ability to take care of your family and could help build wealth across generations. A recent article from CNBC Money Report, “Here’s why estate planning is a gift to your family,” explains how this works.

Remember, there’s no relationship between creating a will and signing documents and something happening to you immediately afterward. This notion keeps many otherwise responsible adults from taking care of their estate plans. Don’t fall prey to it.

Another point is that families fight over money and possessions, even when relationships are good. Without clear instructions provided in an estate plan, a family undergoing the loss of a parent is vulnerable to fighting and litigation.

You’ll want to have a Last Will and Testament and, depending on your situation, possibly trusts, a Power of Attorney for financial and legal matters if you are incapacitated and a Healthcare Proxy (sometimes called a Healthcare Power of Attorney), so someone can make medical decisions and talk with treating doctors in case you can’t communicate.

What happens when there is no estate plan? The courts will make all of your decisions, regardless of the wishes of your loved ones. Your entire estate will go through probate, and a stranger could be named to take charge of it, with a hefty fee to compensate them for their services.

If you have minor children and no will, the court will name a guardian to raise your children. Will it be someone you would have picked or your distant cousin who lives hundreds of miles away? There’s no way to know.

Assets titled properly or those with a named beneficiary will go directly to those named on the accounts without going through probate. This is one of the attractions of trusts, which never become public.

Part of creating an estate plan includes reviewing your accounts and beneficiary designations to ensure that the people named as your beneficiaries are still correct. If you have any old accounts you haven’t looked at in decades, now is the time to ensure that you’re not leaving your pension to an old college pal—unless that’s your intention.

Estate planning is about empowering the present and planning for the future. Chances are you’ve read many news articles about celebrities with massive estate problems because they failed to plan. Leaving a mess for your family to deal with is probably not the legacy you had in mind.

Give yourself and your loved ones the peace of mind knowing you’ve taken care of your estate plan. Be remembered as someone who cared enough to do the right thing. Consult with an experienced estate planning attorney today.

Reference: CNBC Money Report (Jan. 7, 2025) “Here’s why estate planning is a gift for your family”

What Is a No-Contest Clause, and Do They Work?

While the number of wills being contested may sound small, this number doesn’t include the many wills not contested because of strategies used to discourage litigation. If your family includes people likely to battle over your estate plan, you’ll want to know about no-contest clauses. A recent article from Think Advisor, “How to ‘Bulletproof’ a Will With a No-Contest Clause,” explains how to protect your wishes.

Tens of thousands of wills are impacted by contested wills yearly, and even the closest families can find themselves fighting over inheritances. One way to prevent this is with no-contest clauses, also known as the in-terrorem clauses, placed in wills and trusts to discourage heirs from voiding their claims to any part of the overall estate if they challenge the will in court proceedings.

Estate battle reasons vary, from sibling rivalry to intergenerational power struggles. The outcome of using a no-contest clause depends on state statutes, evolving case law and how much the warring parties can or want to invest in estate litigation.

Encouraging discussion between all stakeholders in advance of the passing of the parent or grandparent can give time for everyone to work through any disagreements before courts become involved. However, even with the best of intentions, clear communication doesn’t always resolve the issues.

Almost every jurisdiction has addressed whether or not no-contest clauses can be enforced, either by law or by case law. Vermont doesn’t have any laws about enforcement, and Indiana and Florida do not allow the use of no-contest clauses.

A no-contest clause is relatively simple. However, there are limitations to be aware of. No-contest clauses work only for named beneficiaries who have a claim in the will, and they must be given a sufficient interest under the will or trust for the no-contest clause to be useful. Someone who has been cut out of a will entirely has nothing to lose by taking family members to court for their perceived deserved inheritance, while someone who stands to inherit something, albeit a smaller amount than they would have wished, could lose everything if the no-contest clause is enforced.

Many estate litigation matters involve individuals who receive significant interests. However, feel they that did not receive what they see as unequal or non-controlling interests. In these cases, the enforcement may be relatively straightforward.

Challengers who file actions because they believe someone unduly influenced the testator can be problematic. Few people understand how undue influence works in a legal setting. Undue influence can be found when a person makes bad or unfair choices because of an alleged wrongdoer’s behavior towards them, causing the victim to placate the person. However, proving undue influence is not easy.

There are strategies to overcome no-contest clauses, so estate plans must be prepared with these in mind. In some instances, estate administration is challenged, including actions over improper investments, or raising interpretations of ambiguities.

An estate planning attorney with experience will know how to use a no-contest clause and create an estate plan to stand up to challenges from dissatisfied family members or others who feel they have been treated unfairly.

Reference: Think Advisor (Jan. 16, 2025) “How to ‘Bulletproof’ a Will With a No-Contest Clause”

Inheriting Debt: Managing Debts Left Behind by Deceased Loved One

When a loved one passes away, their debts don’t simply vanish. They instead become part of the estate administration process. The prospect of inheriting debt can feel overwhelming for heirs and beneficiaries. However, not all debts transfer directly to family members. Knowing how to handle debts within an estate is crucial to protecting your financial stability and ensuring a smooth probate process.

What Happens to Debt when Someone Dies?

Debts owed by the deceased are typically paid from the estate before any assets are distributed to beneficiaries. This process is managed during probate, where the estate’s assets and liabilities are inventoried. If the estate’s assets are insufficient to cover the debts, some creditors may go unpaid, depending on state laws and the type of debt involved.

In most cases, heirs are not personally responsible for the deceased’s debts, unless they co-signed a loan or jointly held an account. However, exceptions exist, such as in community property states, where spouses may share responsibility for certain debts.

Types of Debts and How They are Handled

There are four overall different types of debts to consider when going through probate. These include secured debts, unsecured debts, medical debt and student loan debt.

Secured Debts

Secured debts, such as mortgages or car loans, are tied to specific assets. If the estate cannot cover these debts, creditors may repossess or foreclose on the associated property. Beneficiaries who wish to keep these assets may need to pay off the remaining balance or refinance the loan.

Unsecured Debts

Unsecured debts, including credit cards and personal loans, are paid from the estate’s liquid assets. If the estate lacks sufficient funds, these debts may go unpaid, as creditors cannot pursue heirs for payment.

Medical Debt

Medical debt is treated similarly to unsecured debt and is paid from the estate’s assets. However, in some states, Medicaid recovery programs may seek reimbursement for expenses covered during the deceased’s lifetime.

Student Loans

Federal student loans are generally discharged upon the borrower’s death, meaning they do not need to be repaid. Private student loans, however, may follow different rules, and some lenders may attempt to collect from the estate or a co-signer.

Steps to Manage Inherited Debt

Start by identifying all debts and liabilities of the estate. This includes reviewing bank statements, loan documents and creditor notices. Work with the estate’s executor or probate attorney to ensure that all debts are accurately accounted for.

Prioritize Debt Payments

Not all debts are treated equally during probate. Estate laws often prioritize certain obligations over unsecured debts, such as funeral expenses, taxes and secured debts. Ensure that payments are made in the correct order to avoid legal complications.

Avoid Personal Liability

Unless you co-sign a loan or are legally obligated, you are not personally responsible for the deceased’s debts. Be cautious of creditors who may attempt to pressure you into paying. Consult an attorney if you are unsure of your responsibilities.

Negotiate with Creditors

In some cases, creditors may be willing to negotiate reduced settlements, especially if the estate lacks sufficient assets to cover the full debt. Executors can work with creditors to reach agreements that preserve more of the estate’s value for beneficiaries.

Understand Your Rights

Familiarize yourself with state laws regarding debt inheritance and creditor claims. Many states have statutes of limitations on creditor actions, which may limit their ability to collect.

Protecting Your Financial Future

Dealing with a loved one’s debts can be emotionally and financially challenging. Taking proactive steps, such as working with an experienced probate attorney and communicating openly with creditors, can help you manage the process effectively.

Planning ahead is equally important. Encouraging your loved ones to create a clear estate plan, including an inventory of debts and assets, can prevent confusion and ease the burden on family members after their passing.

Key Takeaways

  • Estate Responsibility: Debts are typically paid from the estate’s assets, not directly by heirs, unless they co-signed loans or reside in community property states.
  • Secured vs. Unsecured Debts: Secured debts may require repayment to retain assets, while unsecured debts are addressed based on estate liquidity.
  • Medical and Student Loans: Federal student loans are discharged at death. However, Medicaid or private loans may still seek recovery from the estate.
  • Avoid Personal Liability: Heirs should not assume responsibility for debts without legal obligation and can negotiate with creditors through the estate.
  • Proactive Planning: A clear estate plan with a debt inventory can prevent confusion and streamline estate administration for loved ones.

Reference: National Bereavement Service (2024) “Can you inherit debt?”

Probate for Real Estate Held in Multiple States: Out-of-State Property Management

Probate can be challenging, especially involving real estate holdings in multiple states. Property outside the deceased’s home state requires additional steps, often involving separate probate processes, known as ancillary probate. This process can be complex and time-consuming for beneficiaries, so knowing how to avoid and manage it is essential.

Understanding Ancillary Probate

Ancillary probate is a secondary process required when a decedent owns real estate in a different state from where they resided. Each state has its own probate rules, and ancillary probate ensures that local laws govern property transfer within that state. This process involves additional court proceedings, paperwork and, often, hiring an attorney licensed in that state.

The necessity of ancillary probate can complicate estate settlement, leading to delays and added legal fees. However, understanding how this process works and planning accordingly can help streamline property transfer and reduce administrative burden for beneficiaries.

Drawbacks of Out-of-State Probate

Out-of-state probate can be particularly burdensome for estate executors and beneficiaries. Key challenges include:

  • Time and Expense: Ancillary probate can take months or even years to resolve, especially if multiple properties are involved. This can delay property transfers and increase expenses, from court costs to attorney fees in each state.
  • State-Specific Rules: Each state has probate requirements, and navigating unfamiliar regulations can be difficult. These complexities often necessitate hiring local legal assistance, further increasing costs.
  • Potential for Disputes: With multiple jurisdictions involved, disputes are more likely to arise, complicating property transfers and causing additional delays.

Recognizing these challenges early can help estate planners and executors find ways to avoid or mitigate the effects of ancillary probate.

Solutions to Avoid Ancillary Probate

Once you realize that you’re at risk of ancillary probate, the next step is implementing strategies to avoid it. Thankfully, there are several ways that you can keep your property out of ancillary probate.

Transfer Property Ownership with a Revocable Living Trust

One of the most effective ways to avoid ancillary probate is to transfer real estate ownership into a revocable living trust. By placing property into a trust, the owner maintains control over the asset during their lifetime. Upon their passing, the trust facilitates the property’s transfer directly to beneficiaries, bypassing the need for probate altogether. Trusts are also adaptable, allowing the owner to make changes as needed during their lifetime.

Establish Joint Tenancy with Right of Survivorship

Another strategy for avoiding ancillary probate is establishing joint tenancy with the right of survivorship (JTWROS) on out-of-state properties. In a JTWROS arrangement, property ownership automatically passes to the surviving joint owner, eliminating the need for probate. This method benefits spouses or relatives wishing to simplify property transfer upon death. However, it’s important to remember that JTWROS does not allow flexibility in asset distribution, since ownership automatically transfers to the surviving owner.

Use a Transfer on Death (TOD) Deed

A Transfer on Death (TOD) deed is another probate-avoidance tool available in some states. This type of deed allows property owners to name a beneficiary who will inherit the property upon death. The TOD deed doesn’t impact ownership during the owner’s lifetime and can be changed or revoked as desired. Upon the owner’s passing, the TOD deed transfers the property directly to the named beneficiary, bypassing probate. However, it’s crucial to check if this option is available, as not all states permit TOD deeds.

Consider Selling the Property Before Death

Sometimes, selling out-of-state property before death can eliminate the need for ancillary probate. By liquidating the asset, the estate avoids probate proceedings in that state, simplifying asset distribution for beneficiaries. While this may not be the best solution for all situations, it’s a viable option for those who want to reduce the probate burden on their loved ones. It’s worth consulting an estate planning professional to weigh the financial implications of selling versus retaining the property.

Get Help through Ancillary Probate

Navigating probate for out-of-state properties can be complex, especially for executors unfamiliar with ancillary probate processes. Our law firm offers skilled guidance on avoiding ancillary probate through strategies such as trusts, joint tenancy and TOD deeds.

By working with us, you can streamline the estate settlement process, minimize legal expenses and ensure that property transfers proceed smoothly. Get in touch today to schedule a consultation and find the guidance you need from our probate professionals.

Key Takeaways

  • Ancillary probate is required for out-of-state property: Real estate in multiple states may require separate probate proceedings, adding time and cost.
  • Revocable living trusts bypass probate entirely: Trusts allow direct property transfer to beneficiaries, avoiding the need for ancillary probate.
  • Joint tenancy simplifies asset transfer: This option provides automatic transfer to surviving owners, reducing probate requirements.
  • Transfer on Death deeds avoid probate: TOD deeds provide a simple transfer method in states that allow them, bypassing probate completely.
  • Selling property can be a proactive solution: Liquidating out-of-state real estate before death can simplify estate management and reduce probate.

Reference: Nolo (June 4, 2024) “Ancillary Probate: How to Avoid Probate in Another State”

The Executor’s Checklist: Key Responsibilities and Timelines for Probate

When someone names you as the executor of their estate, they entrust you with the critical task of settling their affairs after their death. While this role is an honor, it comes with legal obligations and potential challenges. Understanding the probate process and responsibilities can help you navigate this critical role effectively, honoring the wishes of the deceased and following the law as needed.

The Role of an Executor in Probate

An executor is responsible for managing a deceased person’s estate, ensuring that assets are distributed to beneficiaries and debts are settled. The probate process legally validates the will and provides the executor with the authority to act on behalf of the estate.

While specific duties may vary depending on state laws and the complexity of the estate, the overall goal is to fulfill the deceased’s wishes as outlined in their will.

Step-by-Step Guide for Executors

1. Locate the Will and File for Probate

Your first responsibility is to locate the deceased’s original will and submit it to the probate court in the county where they lived. This step opens the probate process and establishes you as the estate’s legal representative.

Key documents to gather include:

  • Death certificate
  • Original will (if available)
  • List of known assets and liabilities

The court will issue “letters testamentary,” granting you legal authority to act on behalf of the estate.

2. Notify Interested Parties

You must notify all beneficiaries named in the will and legal heirs if no will exists.  You must  alsoinform creditors of the deceased’s passing, allowing them to make claims against the estate.

Depending on state requirements, notices may be sent by mail and published in local newspapers.

3. Inventory the Estate

You must then compile a detailed inventory of the estate’s assets and liabilities. This inventory should include:

  • Real estate holdings
  • Bank accounts and investment portfolios
  • Personal property such as vehicles, jewelry and collectibles
  • Outstanding debts, including mortgages and credit card balances

This inventory is crucial for understanding the estate’s value and ensuring that all assets are accounted for before distribution.

4. Pay Debts and Taxes

Before distributing assets to beneficiaries, you must settle the estate’s debts and taxes. This includes paying off outstanding bills and loans, filing the deceased’s final income tax return and paying estate taxes, if applicable. Use estate funds to cover these expenses and keep detailed records of all payments for court and beneficiary review.

5. Distribute Assets to Beneficiaries

Once debts and taxes are resolved, you can distribute the remaining assets according to the will. This may involve transferring titles, liquidating accounts, or physically delivering personal property. Ensure that beneficiaries receive an accurate accounting of their distributions and obtain receipts or acknowledgments to document the process.

6. Close the Estate

After completing all responsibilities, file a final report with the probate court to close the estate. This report should include a summary of:

  • Assets collected
  • Debts and taxes paid
  • Distributions made to beneficiaries

The court will review the report and officially close the probate case, releasing you from your duties as executor.

Challenges Executors May Face

The probate process can present challenges, including disputes among beneficiaries, hidden assets, or unexpected debts. To navigate these issues:

  • Stay organized: Maintain thorough records of all financial transactions and communications.
  • Communicate openly: Keep beneficiaries informed to reduce misunderstandings and potential disputes.
  • Seek the assistance of a lawyer: Consult a probate lawyer for guidance on complex legal or tax issues.

Overcome Executor’s Challenges with the Help of Our Estate Planning Firm

By approaching your role with diligence and care, you can honor the deceased’s wishes and ensure the process runs smoothly. At our probate law firm, we’re experienced in helping you through this challenging time with compassionate, informed guidance. Schedule a consultation with our probate attorneys today to find the help you need.

Key Takeaways

  • Responsibilities of Executors: Executors must locate the will, file for probate and manage the estate’s assets, debts and distributions.
  • Inventorying assets and notifying beneficiaries are critical early steps in the process.
  • Order of Priority: Debts and taxes must be settled before distributing assets to heirs.
  • Unexpected Challenges: Disputes or hidden debts are easier to manage with experienced legal assistance.
  • Completing Probate: Closing the estate requires filing a final report with the court, marking the conclusion of the executor’s duties.

Reference: Nolo (Sept. 12, 2022) “Checklist for Executors of a Will”

How to Avoid Estate Planning Mistakes in 2025

Even if you could remove all of the emotions about estate planning, like considering your eventual demise and the possibility of incapacity, it can still feel a bit overwhelming. Having an experienced estate planning attorney on your team makes the process far easier, with the knowledge you’re in good hands. A recent article from GO Banking Rates, “4 Expert Insights on Avoiding Estate Planning Pitfalls for 2025,” explains how estate planning helps to avoid family fights, lost assets and legacies.

Estate Planning encompasses your entire life. Wills express how you want assets to be distributed, and trusts minimize taxes by taking assets out of the probate estate. However, an estate plan is more than these two pieces. Estate plans include incapacity plans, caring for children and transferring wealth in a number of ways.

If someone becomes incapacitated and hasn’t created a Durable Power of Attorney, no one can manage non-healthcare matters, from paying utility bills to maintaining their home. A family member must go to court to obtain guardianship to do anything.

Every estate plan should include a Healthcare Power of Attorney and HIPAA release authorization so a designated person can be involved with their loved one’s healthcare, talk with their doctors and be involved in any medical decision-making.

Keeping beneficiary designations up to date. Beneficiaries aren’t just the people you name in a will. Designated beneficiaries are those listed on retirement accounts, investment accounts, life insurance policies and other documents to receive assets when you die. Make sure these names are up to date, especially if you haven’t reviewed them in years. Any account with a beneficiary designation does not go through probate, and your will has no control over these assets.

Things will get messy if beneficiaries on your accounts are no longer in your life. Assets could go to an ex-spouse, an estranged family member, etc.

Choosing your executor with care. Many people get stuck when there is no obvious person to manage this task. An experienced estate planning attorney can help you work through this issue, since a poor choice could put your entire estate plan at risk. Whoever you choose to serve as executor—the person who manages your estate—will need to deal with financial institutions, family members, government agencies and every facet of your life. Many automatically name their eldest child or best friend, which might lead to disaster if they are not available, good with details, fiscally knowledgeable, or able to manage your family’s personalities. Ensure that they are up for the task and also have a backup executor named.

Introduce your family to your estate planning attorney, financial advisor, CPA and other professionals in advance. The people who help you manage the business side of your life will be able to help you better if family members know who they are, how to contact them and have already met them. They don’t have to be friends. However, making introductions in advance can make their work together easier.

Reference: GO Banking Rates (Nov. 17, 2024) “4 Expert Insights on Avoiding Estate Planning Pitfalls for 2025”

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