As an estate planning attorney, there are several important things I would advise a potential new client not to do after a loved one has passed. These actions could complicate the estate administration process or unintentionally create legal and financial issues down the road:

• Don’t Rush to Distribute Assets:
  • It’s natural to want to quickly distribute your loved one’s belongings, but it’s important to wait until the estate is properly administered. Premature distribution can lead to confusion, potential disagreements among heirs, and even legal liability if it turns out there are debts or taxes to settle.
• Don’t Ignore the Will or Trust:
  • If your loved one had a will or trust, don’t ignore it or assume it’s irrelevant. Even if you are familiar with their wishes, the formal legal documents should always be followed. If there is a will, it must go through probate (or be administered according to the terms of the trust if applicable). Don’t disregard the possibility of a legally binding document that could specify how to handle certain assets.
• Don’t Take Actions That Could Impact the Estate’s Value:
  • Avoid selling or transferring any property, including real estate, stocks, or personal belongings, without consulting an attorney first. Certain actions, like selling real estate or withdrawing funds from accounts, could lead to tax consequences or complicate the estate’s overall financial picture.
• Don’t Ignore Debts:
  • Don’t assume that debts of the deceased will just disappear. Creditors have the right to file claims against the estate. It’s essential to account for and address these obligations before any assets are distributed to heirs. Taking care of debts without involving the estate process can expose you to personal liability.
• Don’t Forget to Notify Key Parties:
  • Don’t neglect to notify relevant entities, such as life insurance companies, government agencies (Social Security, Medicare, etc.), banks, and credit card companies, of the death. Failing to do so could lead to missed benefits or even fraud risks. Also, consider placing a “death notice” on relevant accounts to ensure protection from potential identity theft.
• Don’t Fail to Preserve Records:
  • It’s crucial to keep all financial and legal documents intact, including receipts, bills, tax returns, and any legal notices received by the estate. These records are essential for estate administration and potential future legal proceedings.
• Don’t Disregard the Need for Probate or Trust Administration:
  • If the estate is subject to probate, don’t neglect the process. Sometimes people try to bypass probate thinking it will save time or money, but in reality, this can cause more harm than good. Proper probate ensures that debts are paid, taxes are handled, and assets are distributed according to the law or the will.
• Don’t Assume the Estate Won’t Be Taxed:
  • Even if your loved one didn’t have a large estate, there could still be estate or inheritance taxes to consider. Don’t assume the estate is too small to be taxed. It’s a good idea to have a professional evaluate potential tax implications.
• Don’t Make Decisions Based on Emotion Alone:
  • Grief and emotion can cloud judgment. While it’s completely understandable to want to honor the deceased’s wishes, be careful not to make decisions on the fly that could have long-term legal or financial consequences. Seek guidance from an estate planning attorney to ensure that decisions are made in accordance with the law and in the best interests of all involved.
• Don’t Forget to Update Beneficiary Designations:
  • If you are a beneficiary of your loved one’s accounts or policies, don’t forget to review and update any beneficiary designations (if applicable). This is important because beneficiary designations typically override what’s in a will or trust.

Ultimately, navigating the process after a loved one’s death can be emotionally challenging. However, taking the right steps and following the law is key to avoiding unnecessary complications. Schedule a free 30 minute phone consultation with us today; we can guide you through the proper steps and help you ensure that the estate is administered correctly.