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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”

Probate for Real Estate in Multiple States: Managing Assets

Probate is complicated. However, things can get even trickier when managing real estate in multiple states. If you own property outside your home state, your heirs may face extra steps in settling your estate. Here’s a look at how probate works for real estate in multiple states and how you can help your loved ones avoid these challenges.

What Is Probate?

Probate is the legal process of distributing a person’s assets after death. For real estate, probate involves the court supervising property transfer to the rightful heirs. This can take months or even years, depending on the complexity of the estate. When real estate is involved, mainly if it’s located in more than one state, it can complicate matters even more.

Each state may require a separate probate process when you own property in multiple states. This means your family could deal with probate proceedings in several locations, which can add time, legal costs and stress.

Probate Across States

If you own property in a state other than where you live, your estate could go through two different probate processes—one in your home state and another in the state where the property is located. This is called “ancillary probate.” The probate process in your home state handles all your other assets, but any real estate outside of your state is subject to the probate laws where the property is located.

Each state has rules for probate, including who can inherit property and how long the process takes. If you don’t plan, your heirs could face additional delays and legal fees as they navigate probate in multiple states.

Can You Avoid Probate in Multiple States?

According to Forbes, there are ways to avoid probate for real estate, even if it’s located in different states. By planning, you can save your heirs time and money. Here are a few options:

Should You Use a Revocable Living Trust?

One of the most effective ways to avoid probate is to create a revocable living trust. This allows you to transfer your real estate ownership into the trust while still alive. You remain in control of the property during your lifetime. After you pass away, the property goes directly to your beneficiaries without going through probate.

Creating a revocable living trust requires some legal work. However, it can be a much simpler and faster way for your heirs to receive the property after your death. It can also help them avoid the costs and delays of ancillary probate.

Is a Transfer-On-Death Deed Good for Real Estate Inheritance?

In some states, you can set up a transfer-on-death (TOD) deed for real estate. This allows you to name a beneficiary who will automatically inherit your property when you pass away. A TOD deed can be more affordable and straightforward to avoid probate. However, it’s unavailable in every state. If you own property in multiple states, you must check if each allows TOD deeds.

Avoiding Probate with Co-Ownership

Another way to avoid probate for real estate is by co-owning the property with someone else. If you and your spouse, for example, own a home together, the property might automatically transfer to the surviving spouse upon your death without going through probate. However, this option only works for certain types of co-ownership, so knowing how your property is titled is essential.

When You Should Seek Legal Help

Dealing with probate for real estate in multiple states can be complicated. Every state has laws and rules about how probate works and how property is transferred. Talking to a probate lawyer is good if you own real estate in numerous states. They can help you understand your options and create an estate plan to make things easier for your loved ones.

Protect Your Property Across State Lines — Start an Estate Plan Today!

Planning is essential to ensure that your family avoids the stress and costs of probate; a probate lawyer can help you explore your options, whether creating a living trust, setting up a TOD deed, or exploring co-ownership strategies. Contact our law firm today to request a consultation and start planning to protect your real estate and other assets.

Key Takeaways:

  • Simplify the probate process: Avoid multiple court proceedings for real estate in different states.
  • Save time and money: Keep your heirs from dealing with costly and lengthy probate.
  • Maintain privacy: Keep your real estate transfers out of the public record with proper estate planning.
  • Ensure smooth asset transfer: Use trusts, TOD deeds, or co-ownership to help your family inherit without the hassle.
  • Protect your loved ones: Plan with the help of a probate lawyer to minimize future legal challenges.

Reference: Forbes (Aug. 23, 2024) “A Guide To Probate In Real Estate: What You Should Know”

Millennials Need Estate Planning

One family jokes about their mother’s large blue binder, affectionately calling it “Mom’s Book of Life.” She has assembled physical copies of estate planning documents, including medical directives for next of kin, account information, passwords and a list of assets. Her adult children thought they were too young to deal with such matters, reports a recent article, “I’m Way Too Young For Estate Planning. Or Am I?” from The Wall Street Journal. On reflection, they realized they, too, needed an estate plan.

Someone as young as 18 could benefit from having an estate plan, and someone in their 30s definitely needs one. Once a young person becomes a legal adult, their parents no longer have any say in financial or health matters without properly prepared estate planning documents.

Everyone over 18 should have an advanced healthcare directive, sometimes called a healthcare proxy or healthcare power of attorney. This allows people of your choosing the ability to make decisions about your healthcare if you become incapacitated: too sick or severely injured and unable to communicate your wishes.

Adults of all ages also need a power of attorney. This document gives another person the legal authority to access and manage your finances in case of incapacity.

A will, also known as a last will and testament, is needed to direct how you want your assets to be distributed after death. Even if you don’t own a home or car, chances are you have some personal property and may want specific people to receive certain items. Creating a will and getting used to the concept of planning for the future is a good habit.

If you have an extensive online life, digital assets will also require some planning. An inventory of your digital assets, including email accounts, apps, social media, cryptocurrency, photos, videos, etc., should be created, so a digital executor can manage the accounts. Some platforms permit naming a legacy contact, while others require specific directions on what should be done with your content.

Student loans, 401(k)s from employers and other financial accounts should be inventoried. However, this information doesn’t go into the will. The will becomes a public document once submitted to the court for probate, so any specific account information should be kept in an inventory of assets and debts.

Creating an estate plan can open a conversation with older relatives and parents about their plans for end-of-life care, a difficult but important dialogue. Talking about their wishes before something happens will allow you or other relatives to know beforehand, rather than spending the rest of your life worrying about a decision made in an emergency situation.

Estate plans need to be changed as you go through your life. New partners or spouses may need to be added, or a deceased parent may need to be removed as an executor. Getting used to addressing these life matters is part of being a responsible and loving adult.

Reference: The Wall Street Journal (Oct. 18, 2024) “I’m Way Too Young For Estate Planning. Or Am I?”

Can an Invalid Will Be Challenged?

If you are looking for a reason to get your estate plan in order, the experience of a daughter faced with a long and expensive legal battle when an invalid will was filed should motivate you to contact an estate planning attorney today. This unsettling story, reported by KATU2, “Woman says invalid will drained her mom’s estate and exposed holes in OR probate process,” shows why wills need to be updated and shared with family members.

A woman’s mother died suddenly in her daughter’s apartment. A few months later, a will was filed and accepted by the probate court but not by the daughter. It took nearly five months for a judge to throw out the invalid will after it went into effect.

The will expressly disinherited the daughter, who was very close with her mother and knew her mother would never have disinherited her. Her attorney filed to contest the will in June 2023.

The witness and the notary on the will were identified and interviewed. Both said they never signed the documents. The witness and notary filed their statements with the court in July. A handwriting expert who testified that the two signatures had been forged was brought in.

The handwriting expert also determined the mother’s signature on the will was forged, finding it had been taken from a legitimate will created in 2018. Kristy was left a quarter of her mother’s estate in this will.

The judge set a court date for September. In the interim, thousands of dollars were charged fraudulently on the mother’s credit cards. Someone advertised and held an estate sale in August when generations of heirlooms were sold at a garage sale.

The court froze the entire estate in late August. The 2022 will was found invalid in early September, and the executor was removed. By this time, however, a lot of irreparable damage had been done.

The court validates a will during probate. However, something went wrong in this case. Having a will prepared with an estate planning attorney and discussing the process with the appropriate family members should take place. However, not every family takes these steps.

The court is not responsible for contacting the beneficiaries to ensure that they receive their inheritance, unless they file a will contest with the court. It is then up to the heirs to prove a will’s validity.

In this case, both the beneficiary of the invalid will and the attorney representing the executor of the invalid will have refused to speak with a KATU2 reporter. So far, no charges have been filed. The only sure thing is that the case is under investigation by the county sheriff.

Keeping a will current and maintaining open lines of communication between the family, the executor and the estate planning attorney helps to avoid this kind of situation.

Reference: KATU2 (Oct. 14, 2024) “Woman says invalid will drained her mom’s estate and exposed holes in OR probate process”

How Does Property Pass to Heirs in Estate Planning?

Not everyone understands how different kinds of property pass to heirs. This becomes problematic when heirs learn they aren’t receiving assets they thought would automatically pass to them — or when taxes or court costs take a big bite out of their inheritance. A recent article from The News-Enterprise, “Understanding how property passes on is crucial to planning,” explains how assets are distributed.

There are four general categories for how property can pass to beneficiaries upon death: joint ownership, POD (Payable on Death) accounts, trusts and wills. Most estates include a combination of these methods. However, every estate plan is different and should be crafted to meet the individual’s unique needs.

A primary residence typically passes to a joint owner, usually a spouse or domestic partner. This is why homes are owned by “Joint Tenants with A Right of Survivorship.” Property owned with a JTWRS title passes to the surviving owner when one of the owners dies. This is often how married couples own homes and joint bank accounts. These rules vary by state, so check with your estate planning attorney to be sure you own your home correctly.

Jointly held assets can also be owned without a right of survivorship. Each person owns a separate interest in the property, and ownership continues after death. When one owner dies, several steps must take place to distribute the decedent’s share to their heirs. A case will need to be opened in probate court, and a will needs to be submitted if there is one. Without a will, the decedent’s shares pass to their nearest heirs by kinship.

If you don’t like your relatives, having a will is necessary to prevent your assets from going to the wrong people.

How assets are owned should be clarified during estate planning. Many cases involve surviving spouses going to court against their own children because the ownership of joint property wasn’t established with a right of survivorship.

When accounts are set up as Payable on Death (POD) or Transfer on Death (TOD), the assets go directly to the person named on the account. It sounds simple and speedy. However, there are some risks. The assets may return to the taxable estate if the intended beneficiary dies before the primary owner. If the beneficiary receives means-tested benefits because of a disability, they might become ineligible for benefits like SSI or Medicaid. Even a small distribution could disrupt years of careful planning, if it is directly into their own name.

Trusts are commonly used to pass assets privately and smoothly. The distribution directions follow the trust’s language and can be tailored as needed. Assets can be distributed based on meeting certain conditions, like getting married or attaining a college degree. A trust can also distribute specific percentages of the trust at certain ages.

Assets not distributed through the three methods described above pass through a will and the probate process. If there is no will, the laws of the state determine who inherits the property.

An experienced estate planning attorney uses well-formed strategies to help clients consider how assets are best passed to their heirs. Keep in mind that every situation is different, so what your neighbor or best friend may have done may not be suitable for you and your family. A consultation with an estate planning attorney is the best way to be sure that your wishes are followed.

Reference: The News-Enterprise (Oct. 12, 2024) “Understanding how property passes on is crucial to planning”

Heirs’ Property and Potential Landowners Issues in Inheritance through Probate

Heirs’ property describes land or real estate that an heir inherits without a legally binding will. When a person dies without a will, their property goes through probate. This legal process determines the value of the deceased’s assets, pays off any debts and identifies the rightful heirs. Without a will, property is often divided among multiple heirs, fracturing the property among various landowners.

What Landowners Issues Arise from Heirs’ Property?

Heirs’ property creates several challenges for landowners:

  • Lack of Clear Title: Landowners cannot access the full benefits of homeownership without a clear title. They are often ineligible for loans or government assistance programs, making maintaining or improving the property difficult.
  • Vulnerability to Partition Sales: Any heir, regardless of their fractional interest, can initiate a partition sale. A forced sale can occur if the property cannot be physically divided, which is common in urban areas. This makes heirs’ properties susceptible to speculators who can buy out a single heir and force a sale.
  • Tax Issues: Heirs’ property owners may face higher property taxes because they cannot qualify for tax exemptions without a clear title. This increases the risk of tax foreclosure.

At first, fractional ownership under heirs’ property wouldn’t seem like a bad solution. However, the divided property ends up being worth much less to your descendants than the sum of its parts.

The Impact on Black Communities

Heirs’ property is particularly prevalent in Black communities, especially in the rural South. Historical factors, such as exclusion from the legal system during Reconstruction and Jim Crow eras, contributed to this issue.

Black families have lost significant wealth due to a historic lack of access to estate planning. According to HousingMatters, roughly one-third of all Black-owned land in the South is heirs’ property. This amounts to around 3.5 million acres with a value of $28 billion.

What Is the Uniform Partition of Heirs Property Act?

The Uniform Partition of Heirs Property Act (UPHPA) is legislation designed to protect the owners of heirs’ property from forced sales. According to ABCnews, the UPHPA helps families preserve their inherited property and maintain their wealth.

This bill aims to provide a fair process to partition inherited property. Co-owners can buy out the shares of other heirs before any forced sale. This law prioritizes keeping the property within the family, closing an avenue for real estate speculators to exploit heirs’ property owners.

Protecting and Preserving Heirs’ Property

Addressing the issue of heirs’ property requires a multi-faceted approach:

  • Legal Assistance: Providing legal services to help landowners create wills and clear titles is crucial. Legal clinics and pro bono work can connect lawyers with communities in need.
  • Community Engagement: Partnering with trusted community organizations can help build trust and encourage estate planning.
  • Policy Changes: Implementing state policies, like the Uniform Partition of Heirs’ Property Act, can protect landowners by allowing them to buy out other heirs and prevent forced sales.

Black Families, Estate Planning, and Truth in Fiction

In a poignant episode of HBO’s “Insecure,” Issa Rae’s character mentions that her great-aunt’s will was thought to be with God. However, it ended up with the county. This humorous line underlines the unfortunate reality that many Black families lack legally binding wills. As a result, many Black families have suffered even more obstacles to accruing generational wealth.

Without proper estate planning, properties end up in probate. This leads to avoidable taxes, fractional ownership and vulnerability to partition sales. This strips families of their heritage, while simultaneously perpetuating the racial wealth gap.

Plan for Generational Wealth

If you own property and lack a robust estate plan, taking action now is crucial. Contact our estate planning attorneys to learn more about protecting and transferring your assets to your descendants. Request a consultation today to secure your family’s legacy and reduce the racial wealth gap.

Key Takeaways

  • Clear Title Importance: Obtaining a clear title helps landowners access loans and government assistance.
  • Risk of Partition Sales: Any heir can force a sale, making properties vulnerable to speculators.
  • Tax Challenges: Heirs’ property owners may face higher taxes, risking foreclosure.
  • Impact on Black Communities: A significant portion of Black-owned land in the South is heirs’ property, affecting wealth transfer.
  • Solutions: Legal assistance, community engagement and policy changes are crucial for protecting heirs’ property.

References: ABCnews (Oct. 27, 2023) “In North Carolina, a proposed law could help families protect land ownership” and HousingMatters (Dec. 13, 2023) “What Is Heirs’ Property, and Why Does It Matter for Equitable Homeownership?”

Trustee of Late Singer Tony Bennett’s Estate Sued

What Happened to Tony Bennett’s Estate?

For many, estate planning is a distant concern. However, life events can bring it suddenly into focus. A DailyMail headline involving the late singer Tony Bennett exemplifies this. He passed without a robust estate plan, leaving his children and widow embroiled in a legal battle over his estate. We must ask ourselves an important question: how can we avoid these estate disputes?

Why Do Families Fight Over Inheritances?

Family conflicts over inheritance are tragically common. According to The Conversation, there are several reasons why these disputes arise:

  • Lack of Clear Instructions: A vague will or estate plan leaves room for interpretation and disagreement.
  • Unresolved Family Issues: Long-standing family tensions can resurface during the emotionally charged period after a loved one’s death.
  • Perceived Fairness: Different family members might have varying opinions on what constitutes a fair distribution of assets.

In Tony Bennett’s case, the daughters are suing their brothers and his widow. The brother is the sole executor of the state, and he’s allegedly failed to be transparent with his sisters.

Trustee of Late Singer Tony Bennett’s Estate Sued

Tony Bennett’s daughters, Antonia and Johanna Bennett are the plaintiffs in the suit. The defendant, their brother D’Andrea “Danny” Bennett, has allegedly mishandled the estate. According to his sisters, he has failed to disclose their father’s assets and answer their questions.

The sisters estimate the value of their father’s estate to be much greater than what their brother has reported. They specifically claim that their brother did not account for proceeds from the sale of Tony Bennett’s music catalog and image rights when he worked as their father’s manager. They’ve also named their brother Daegal “Dae” Bennett and Tony’s widow, Susan Benedetto, as defendants.

What to Learn from the Battle over Tony Bennett’s Estate

Tony Bennett’s story is a cautionary tale. Whoever is right, a lack of clarity and ambiguity in their fathers’ finances has torn a family apart. While few of us have an estate the size of Tony Bennett’s, even a more modest estate can spark strife. Avoiding litigation and protecting your wishes requires a thorough, detailed estate plan and an impartial executor.

Can You Avoid Estate Litigation?

Creating a detailed will and trusts are the foundation of good estate planning. A few key principles include:

  • Plan Ahead: Don’t wait until it’s too late. Start planning your estate now.
  • Appoint a Trusted Executor: The battle over Tony Bennett’s estate began with the executor’s alleged mismanagement. Avoiding conflicts requires choosing a capable, impartial executor.
  • Seek Professional Help: An experienced estate planning attorney can help you navigate the complexities and ensure that your wishes are honored.
  • Review and Update Your Plan: Life changes, and so should your estate plan. Regularly update your documents to reflect your changing circumstances and wishes.

How can an Estate Planning Attorney Help?

An estate planning attorney can provide invaluable assistance in several ways. They can draft a detailed will that’s legally binding and reflects your wishes. They can also set up different trusts to manage your assets, protect your wealth, and provide for your loved ones in a structured manner. Intelligent estate structuring can minimize your tax liabilities to preserve wealth for your beneficiaries. At the bottom line, a good estate planning attorney can help you protect your legacy for when you’re gone.

Reliable Estate Planning Attorneys

Don’t leave your family’s future to chance. By taking proactive steps, you can avoid the kind of disputes that Tony Bennett’s family is facing.

Contact us today to protect your estate. Our team is here to help you create a comprehensive estate plan that honors your wishes and protects your loved ones.

Key Takeaways

  • Avoid Family Disputes: Proper estate planning can help prevent conflicts among heirs.
  • Clarity and Communication: Clear instructions and open communication reduce misunderstandings.
  • Select a Reliable Trustee: Choosing a trustworthy executor is crucial for smooth estate administration.
  • Regular Updates: Keep your estate plan current to reflect life changes.
  • Professional Guidance: An estate planning attorney can ensure that your wishes are legally sound and honored.

References: DailyMail (June 15, 2024) “Tony Bennett’s daughters break their silence after suing brothers and late singer’s widow amid bitter inheritance battle over their father’s estate” and TheConversation (May 17, 2022) “Why families fight over inheritances – and how to avoid it”

What’s the Best Way to Simplify an Estate?

Yes, you need to create your estate plan and decide how you want your money and real estate property to be distributed upon your death. However, there’s more. A recent article from Morningstar, “Your family will love you even more if you simplify your estate,” says you should also simplify your assets to simplify your estate.

How you have your financial life arranged now may seem simple enough to you as you navigate it regularly. You know where your accounts are, how much is in each account and who the beneficiaries are of any account, having the option of naming a beneficiary. If you don’t know who the beneficiaries are, take care of this right away.

However, for your executor and your heirs, those same accounts are a series of unknowns. If a single financial advisor doesn’t handle your investments, can you bring them under one person’s management? If you have accounts in more than one bank, can you consolidate them into one bank?

A record number of boomers will turn 65 in 2024. The “great wealth transfer” of a generation owning $72.6 trillion and passing this along to younger generations has led many to prepare accounts and heirs for what will come in the next twenty years. This includes creating a comprehensive estate plan with a will and trusts. Most experienced estate planning attorneys advise their clients to create a revocable living trust to avoid probate, which can be costly, stressful and time-consuming.

Probate is considered one of the most complex parts of inheritance. Distribution will be far simpler if you can remove most of your assets from being part of your probate estate. Trusts can also protect assets in a way wills cannot. It’s far more challenging to contest a trust than it is a will. If your family is prone to infighting, you want to place assets into trusts!

Talk with your estate planning attorney about a “pour-over will.” This is a will directing any assets not already in your trust to be “poured over” into the trust upon your death. You’ll also want to have a financial power of attorney, healthcare power of attorney, living will and HIPAA release. These documents allow the people you designate to take care of your financial, legal and health if you should become incapacitated.

Once your estate plan is in place, start consolidating accounts. If you have multiple IRAs or 401(k)s from various employers, combine them. You’ve set your heirs up for trouble if you have individual stock certificates in your bank’s safe deposit box. First, the safe deposit box will be sealed upon your death, unless someone else owns the box. Second, stock certificates must be settled through a stock-transfer company, which requires proof of the owner’s passing and proof of their being legitimate heirs. New accounts need to be opened up for the stocks to be transferred to, and only then can they be retrieved the money from the sale of the stocks.

It can also be difficult for heirs if they have annuities, government-issued bonds, or bank CDs. They all must be found, and distribution rules must be uncovered and processed.

After having your estate plan created and consolidating accounts, create an inventory of all accounts, including digital assets (usernames and passwords will be needed), and place them in a file with keys to your safe deposit box, life insurance policies and estate planning documents in one place. Make copies of your credit cards, front and back as well.

Having this information in one place will make managing your estate far easier. Your loved ones can focus on their memories and not be overwhelmed by the details.

Reference: Morningstar (June 18, 2024) “Your family will love you even more if you simplify your estate”

What Happens When Executors Keep Beneficiaries in the Dark?

A couple who never had children created a will, leaving their six nieces and nephews equal shares of their estate upon their deaths. When the uncle died, the aunt remarried years later but never changed the will, except for giving her second husband a life tenancy in the family home. A recent article from Market Watch asks if what happened next is right: “My late aunt gave her husband a life tenancy in her home—but her attorney won’t even let us see the will. Is this a bad sign?”

The problems began when the aunt’s attorney told the nieces and nephews that they were responsible for the taxes and property insurance while the life tenant lived in the home. The nieces and nephews had never seen a copy of the will, so they are unsure of their responsibilities as remaindermen. Nothing in the estate needed to go through probate, so the aunt’s will was not available to beneficiaries through the county court.

This case illustrates several important estate planning points. First, an executor of a will (or an administrator of an estate) is required to keep beneficiaries “reasonably informed” of the will’s contents after probate. It seems reasonable for the nieces and nephews to be able to see the will.

In most cases, the person given the life tenancy is responsible for paying taxes and property insurance and for the general upkeep of the residence. Any other arrangement is unusual, so the nieces and nephews are right to want to see the will.

The life tenant has rights, including the ability to rent out the property. However, they can’t do anything to decrease the house’s value. It’s important to know that elderly people may be unable to apply for Medicaid because they live in the house this way.

If it has been months since the person died and there hasn’t been any communication from the executor, a few different scenarios are possible. It may be that the executor doesn’t know they are required to keep beneficiaries informed. However, it’s also possible that the executor is engaging in illegal behavior.

In most states, the executor is responsible for providing beneficiaries with a complete inventory and appraisal of all the estate’s assets. Depending on the state, probating an estate may take more than six months, and creditors have a certain number of months to file a claim.

Suppose the beneficiaries wish to replace the executor. In that case, they can do so by speaking with an estate planning attorney and being prepared to go to court and prove the executor is either self-dealing, incompetent or has a conflict of interest.

However, once the will is probated, it will become part of the public record and must be filed in probate court. Depending on the jurisdiction, the court will give the beneficiaries the right to access the will.

The best option for the nieces and nephews is to consult an estate planning attorney to explore their options. If they live in a different state, a local estate planning attorney can recommend someone in their aunt’s jurisdiction to help.

Reference: Market Watch (April 28, 2024) “My late aunt gave her husband a life tenancy in her home—but her attorney won’t even let us see the will. Is this a bad sign?”

What Will Happen to O.J. Simpson’s Assets?

A wrongful death lawsuit in 1997 found O.J. Simpson liable for the deaths of ex-wife Nicole Brown-Simpson and her friend Ron Goldman. Yet, their families have received little of the $33.5 million judgment levied by a California civil jury. According to an article from The Washington Post, “If O.J. Simpson’s assets go to court, Goldman, Brown families could be first in line,” we may find out soon whether or not Simpson had done any estate planning.

If Simpson had only a will, the estate would go through the probate process in court. Probate laws vary from state to state, but generally, the estate is filed in the person’s state of residence. Simpson resided in Nevada but might have owned assets in California or Florida, where he resided at different times. If that’s the case, separate probate cases will also be opened in those states.

The Nevada probate rule requires an estate to go through probate if its assets exceed $20,000 or the decedent owns any real estate. Probate must take place within 30 days, so things may happen quickly.

If no documents are filed, creditors can file claims to recover assets. The Goldman and Brown families may not be alone in filing for assets, but they’ll undoubtedly have a higher visibility than a credit card company or bank.

In California, the law holds that creditors with a judgment are considered to have “secured debt” and take priority over other creditors. In one instance, a family was awarded $9 million by a jury, but the debtor subjected them to a prolonged series of appeals and delays. When the debtor died, the estate paid the $9 million plus accrued interest of $3 million.

Did Simpson leave an estate big enough to cover his debts? At the time of the civil lawsuit, the court seized many of Simpson’s possessions. He was forced to auction his Heisman Trophy, which brought $230,000. He claimed to only have income from pensions, one from the NFL and the other a private pension.

Whether Simpson had a structured estate plan with trusts could affect how his creditors will be compensated. The creation and funding of the trusts will also affect their accessibility. Irrevocable trusts are robust legal entities but may not always be 100% impenetrable.

A transfer of assets made to avoid paying creditors is considered fraud, so any trust could be deemed invalid. If this occurs, the Goldman and Brown families may file separate lawsuits to attach assets in the trust.

You don’t have to be famous to have creditors trying to get assets from your estate. Seeking advice from an estate planning attorney about structuring your estate to shield inheritances from creditors is always advisable.

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