The process of probate is quite complex and includes familiarity with various legal terminologies, deadlines, the filing process, and much more. While navigating such a procedure, especially for the first time, the probability of errors is obvious. In addition, even a minor mistake in this process could lead to extensive delays, which will consume your time, effort, and money.
If you are about to get involved in legal processes after the passing of a loved one, you need to know how to identify the common mistakes to avoid in Texas probate. Let’s have a look at them:
Understanding the Probate Process in Texas
In Texas, the probate process is the legal procedure used to distribute a deceased individual’s property. This process involves validating the will, settling debts, and transferring remaining assets to heirs with court approval. Texas offers various probate methods, with estate administration being the most formal, appointing someone to oversee the entire process.
For smaller estates, faster and less formal probate methods may be used, allowing heirs to collect assets directly with a court order. The Texas Estates Code governs probate laws in the state. Probate may be required to transfer property, pay off debts, identify heirs, or settle disputes. Non probate property, such as certain bank accounts and life insurance proceeds, can bypass probate and go directly to beneficiaries. Whether probate is necessary depends on factors like estate size and complexity, with the need for an attorney varying based on the probate method and court requirements.
To have further details about this process, go through our step-by-step guide on the complete probate filing procedure in Texas.
Let’s now understand in detail the common probate mistakes in Texas that you must avoid during this process.
Common Mistakes to Avoid in Texas Probate
Not Keeping Up With Deadlines
That’s one of the very basic and the first things no one should avoid, but still, some do not pay attention to the legal period of filing for probation. In Texas, the will must be filed within four years of the decedent’s death. If, for any reason, one fails to do so, the will might be deemed invalid, and the estate may be distributed according to intestacy laws, which may not align with the decedent’s wishes. Thus, to avoid such a scenario, it’s vital to keep up with the deadlines.
Overlooking Some Estate Assets
There might be multiple assets and belongings of the deceased individual that need to be inherited. Therefore, executors must have knowledge about all the assets and should put the inventory together, which includes real estate, bank accounts, investments, personal property, and any other valuables. Overlooking assets can lead to an incomplete estate distribution and potential legal challenges from beneficiaries.
Misunderstanding Community Property Laws
One of the major probate mistakes to avoid in Texas is not completely understanding the assets’ ownership. Texas is a community property state, meaning that assets acquired during a marriage are generally considered jointly owned by both spouses. Sometimes, this makes it difficult for executors to evaluate which property(ies)and assets are only associated with the deceased person.
Incorrect classification of community and separate property leads to disputes among heirs. Thus, it is advisable to seek professional help to ensure accurate asset distribution. Estate planning and probate attorneys understand these distinctions well.
Avoiding Debts and Taxes Payment
Before distributing assets to beneficiaries, the estate must settle all outstanding debts and taxes. Without these payments, the heirs will not be able to claim any assets. Moreover, executors who fail to pay creditors or tax obligations can be held personally liable. This includes not only final income taxes for the decedent but also any estate taxes and debts owed by the estate.
Communication Gaps Among Beneficiaries
In most cases, neglecting communication with beneficiaries leads to misunderstandings, mistrust, and disputes. Thus, executors should maintain open and transparent communication with all parties involved, providing updates on the probate process and responding to inquiries on time. This cooperation and knowledge of the ongoing process will prevent potential conflicts and enable a smoother probate process.
Improperly Distributing Assets
Distributing assets before settling debts and taxes or without proper authorization from the probate court can bring legal consequences for the beneficiaries. You must follow the legal process and court orders before distributing assets to ensure compliance with the decedent’s will and state laws.
Not Seeking Professional Guidance
Probate can be legally and financially complex, and executors who attempt the process without professional help may make costly errors. Seeking guidance from experienced probate attorneys, financial advisors, and accountants can help ensure the estate is administered correctly and efficiently.
Ignoring Non-Probate Assets
Some assets, such as life insurance policies, retirement accounts, and assets held in a trust, pass directly to designated beneficiaries and are not subject to probate. Executors should be aware of these non-probate assets to avoid mismanagement and ensure proper transfer to beneficiaries.
Conclusion
Knowing these common mistakes in Texas probate will help you smoothen your probate process and asset settlement by making it quicker and more economical. To ensure that the process is less complicated, you should strongly consider hiring an estate planning and probate attorney to guide you through the process.
If you are about to go through this process and want to consult a professional probate attorney in San Antonio, New Braunfels, or Comanche Texas, we invite you to contact one of our outstanding attorneys at MBB to handle everything for you!