How To Avoid The 5 Most Common Mistakes Families Make During Probate In Travis County, Texas

In this article, you can discover…

• The importance of communicating with secured creditors during probate.
• Why clear communication between heirs is essential. 
• How an experienced probate attorney can help you avoid common mistakes. 

Mistake #1: Failing To Notify Creditors About The Probate Process

In Texas, you always have to notify secured creditors by law, but the consequences for failing to do so can depend on the type of probate you’re dealing with. Secured creditors are lenders who have a claim to the personal assets of the estate, meaning that they can sell things like the house or the vehicle to cover the debt if there is a default on a loan. Secured creditors often don’t care if you notify them in time as long as they get paid. 

However, unsecured creditors may need to be looked at more closely by your attorney to determine the best course of action. There is no obligation to notify unsecured creditors, and sometimes, the best move can be to wait and see what they do. 

Mistake #2: Keeping An Inaccurate Inventory Of Assets

There are two main reasons for keeping an accurate inventory, the primary reason being for tax purposes. The IRS may decide to look into your valuation at the time of death. If the valuation of the property increases after the fact, your case will be based on the time of death or extended date and an accurate inventory.

The secondary reason depends on who the heirs are, as matters can get complicated if everything is not listed properly and in detail. You do not have to go to the extreme of listing knick-knacks or small items, but personal property in general as a class and assets such as vehicles and bank accounts need to be listed in detail to avoid any complications. 

Mistake #3: Poor Communication Among Heirs

Probate is one of the primary areas where families encounter difficulties and fall apart due to disagreements. These issues are often the result of misunderstandings and can often be remedied by practicing clear communication. Failure to prioritize transparency and communication is a common mistake that impacts families during the probate process. 

Attorney Richard Cahan is a seasoned lawyer based in Travis County, TX, who has helped countless clients just like you navigate the intricacies of probate law. With close to a decade of experience under his belt, he is prepared to assist you in settling the estate of a lost loved one so that you can move on with peace of mind.

Still have questions? Ready to get started? Contact the Law Office of Richard Cahan today to schedule an initial consultation.

Mistake #4: Mishandling Probate Taxes

On a state level, Texas does not have any kind of death tax or probate tax. However, federal probate and death taxes exist, currently impacting those with estates in excess of $13.9 million per person.

If you have those kinds of assets, we are likely not the ones who would be handling your probate. But this is where you would often find mistakes, as mismanaging assets at that level can lead to huge tax burdens and cost you significant amounts of money. 

Mistake #5: Failing To Work With A Probate Attorney

Texas requires you by law to work with a probate attorney, as the family and heirs are not the estate, and the estate is not a person. Therefore, you are required to work with an attorney who can represent the estate.

In fact, the court will refuse to even talk to you until you have legal representation, but this doesn’t mean you cannot try to complete probate without a lawyer. There is a small state affidavit probate that you can opt for, but these proceedings often fail and require the help of an attorney to receive approval. Ultimately, you will end up working with an attorney in almost every case.

What Is Another Common Mistake You’ve Seen Made When Handling Probate?

One of the most common mistakes is not proceeding with a probate. Many parties wrongfully assume that everything will be taken care of automatically by the law, generally thinking their spouse will inherit everything without needing probate. Unless you have arranged for a special provision, such as a transfer on death or survivorship agreement, this is not the case. 

No matter who the heir is, this will need to be established with the court. I see many clients make the mistake of failing to arrange for the distribution of assets before the passing, leading to a number of issues and additional expenses down the line.

Another mistake I see often is that individuals will attempt to avoid hiring an attorney to help with their documents, which can potentially lead to a number of issues. I’ve seen heirs receive the wrong things, assets get distributed improperly, and documents get rejected for improper execution. These are the most common missteps we typically see.

How Can I Avoid Contested Probate Cases In Texas?

For all parties, the best way to avoid a contested probate case is to have a legally sound will and communicate properly with your attorney. Sometimes, people want to make a fuss about a loved one’s will, even if it’s not in their best interest, and this is why it’s good to have a solid estate plan in place that thoroughly outlines what is going to happen. 

It is important to have a clearly worded plan that is openly communicated to all involved parties in order to avoid contested cases to the greatest extent possible. 

Still Have Questions? Ready To Get Started?

For more information on Texas family probate advice, an initial consultation with Attorney Richard Cahan could be your next best step. Get the information and legal answers you are seeking by calling (512) 829-6100 today.