AN UNPLANNED ESTATE MAY MEAN A LONG, FRUSTRATING PROBATE
You may have been debating with yourself for some time now about whether you need to create an estate plan. Maybe you have already told your children, grandchildren and others what you would like them to do with your Florida home, checking account and personal belongings. If you don't have many assets, you may feel this is good enough.
However, without a will or other plan, you are leaving your heirs with the long and complicated process of probating your estate. During this legal process, a judge oversees the validation of your heirs and approves the distribution of your assets. There may be many factors that can drag out this process, leaving your heirs frustrated and disappointed.
Tax issues
One of the most important questions that arises concerning estate planning deals with taxes. If your estate is not exempt from federal estate taxes, your heirs may have a complicated task and a substantial wait for their inheritance. Your personal representative will be required to file a Form 706 tax return after your death.
While this may seem simple enough, the IRS typically does not get around to processing such returns until four months or longer after they receive them. It may be an additional four months before an IRS agent reviews the return. If the IRS decides it needs more documentation, the delay will be even longer. Proper estate planning with an attorney who has experience in tax issues may be able to prevent such delays.
More is not always merrier
Another factor that may delay probate is having many people vying for your assets. Without a will or trust designating heirs, your estate may end up in the middle of bitter legal disputes if potential beneficiaries fight over what they believe is rightfully theirs. Also, having heirs scattered far and wide may create delays simply because of the logistics of locating them and gathering signatures on vital documents.
If you own unusual assets, probate may take longer because of the importance of obtaining accurate valuation of your property. For example, race horses, rare art, patents or oil rights are challenging assets to probate. The valuation of this property will also certainly affect the progress of your federal estate taxes if the IRS disputes the worth of certain assets.
While some delays in probate may be unavoidable, the best way to minimize these disruptions is to plan carefully. Having a thorough inventory of your estate, a chosen executor and a well-drafted estate plan can make all the difference to your heirs.
Established in 1991, Rignanese & Associates is available to work with clients on their legal needs. Let us help you save time, trouble and money.
Rignanese & Associates is available to work with clients on their unique situation. Please reach out to us at our headquarters at 141 5th Street NW, Suite 300, Winter Haven, Florida 33881 at 863.294.1114.
On behalf of J. Kelly Kennedy, Attorney/CPA, PLLC, which has been acquired by Rignanese & Associates, PLLC.