What should you do when you uncover assets owned by a person who passed after their probate has closed? This article explains what to consider.
Probate is the legal process by which a decedent’s assets are inventoried, valued and eventually passed to beneficiaries after death. As part of the probate process, personal representative must locate all estate assets and include them on an inventory filed with the court. Despite all diligent efforts, an asset is sometimes overlooked and turns up months, even years, later. What do you do when this happens?
The answer depends on the answers to a number of questions. There is no “one size fits all answer;” however, ask yourself the following questions to try and determine how to handle an reported asset:
- Has the probate really been closed? It may have been dormant for many months, but has the court officially closed the probate?
- Is the probate bank account still open?
- Does the executor still have legal authority through valid Letters of Authority or similar documents?
Often, heirs assume that the probate is closed when, in fact, it is still formally open with the court. Even when the probate is closed, the final orders of the court may still address this issue.
If the asset is a check, and the probate account is still open with the bank, you may still be able to deposit the check. You can begin by reviewing the court orders given to the personal representative. His/her orders may provide for the distribution of “hereafter discovered” property. If this is the case, then handling the recently discovered asset may be rather easy. If this is not the case, then you may be required to re-open the probate.
