Probate is a legal process that can be both emotionally and financially challenging, and it becomes even more complicated when it comes to listing assets in your application. One common mistake that can lead to excess probate fees is inaccurately describing, omitting, or even including. In this blog post, we will explore the consequences of listing the wrong assets in your probate application.
The Importance of Accurate Asset Listing:
Probate is the process of settling a deceased person’s estate, which typically involves distributing their assets to heirs and beneficiaries. To ensure that you can deal with the estate in a timely way, and act in a tax beneficial way, it is crucial to list estate assets accurately in the probate application. Unfortunately, mistakes can happen, and these errors may lead to paying excess probate fees and experiencing delays in the probate process.
Consequences of Incorrect Asset Listings:
- Getting a Grant of Probate That’s Not Required: A multi-million-dollar estate, if planned well, could be passed to a deceased’s loved ones without ever having to go through probate. There are a number of ways to pass property through right of survivorship that don’t pass through an estate, and you may end up getting a grant you don’t actually need.
- Overpayment of Probate Fees: One of the most significant consequences of listing the wrong assets in your probate application is the possibility of overpaying probate fees. The fees associated with probate are often based on the total value of the estate, which includes all assets. If you underestimate the value of the estate by include certain assets that passed to designated beneficiaries or joint tenants, you may end up paying a lot more than you should.
- Delays in the Probate Process: Incorrectly listed assets can also lead to delays in the probate process. The court may require additional documentation or clarification regarding the discrepancies, which can prolong the distribution of assets to beneficiaries.
- Legal Complications: Inaccurate asset listings may also result in legal complications. Beneficiaries may challenge the probate application, suspecting that they have not received their fair share of the estate. This can lead to costly legal battles and strained relationships within the family.
Avoiding Excess Probate Fees:
Seek Professional Assistance: To avoid errors in your probate application, it’s advisable to seek professional assistance. Hiring an experienced lawyer can help ensure that all assets are accurately listed, and the probate process is executed correctly. You can end up paying thousands in unnecessary probate fees and taxes, trying to save hundreds on a lawyer.
Paying excess probate fees due to listing the wrong assets in your probate application can be a costly mistake with potentially long-lasting consequences. To avoid these pitfalls, it is essential to create a comprehensive asset inventory, review it meticulously, and seek professional assistance when necessary. By taking these steps, you can ensure a smoother probate process, minimize the risk of disputes, and protect the interests of both the estate and its beneficiaries.
This blog post provides legal information but is not a substitute for legal advice. If you have a question about this topic or another legal matter, contact Naz Khodarahmi for a complimentary consultation. You can book a consult through www.macushlaw.ca through our booking system or contact Naz at [email protected] or (236) 476-3188.