It might seem crass to measure a memory with money, but millions of us may soon have that opportunity.
Why?
Baby boomers are dying off, and an estimated 40% of them do not have a will. Another 20% of U.S. adults 50 years or older do not have children.
That means a lot of distant relatives are about to become heirs to what has been called “The Great Wealth Transfer”: a whopping $84 trillion over the next 20 years.
If you are in a line for an inheritance, what should you do?
Pay attention to your mail, especially if it is sent certified, Fed Ex or UPS. Not every letter from an attorney bears bad news.
In heirship proceedings, which are necessary when a person dies without a will and has a probate estate, the applicant is required to give written notice to all purported heirs. In a proceeding where a person dies with a will, the executor is required to give written notice to the named beneficiaries.
That is why you don’t want to toss the letter unopened: It will give you important information. If it is an heirship proceeding, then you will get notice about the application to declare who are the decedent’s heirs and what portion they will receive of the distribution. You are entitled to participate in the proceeding.
If the court determines that you are an heir, then two things can happen. The first is that the order is filed and serves as a transfer of ownership of the assets. You will then have the job of discovering the assets and asserting ownership.
The second is that the court opens a probate state and appoints an administrator to secure assets, pay debts and taxes, and make the final distribution.
If the attorney letter concerns an estate for a person who died with a will, then you will receive a copy of the will and contact information for the executor.
Here is where we get to the common proceedings for probate estates. Both heirs and beneficiaries fall under the title of “distributee,” meaning they are entitled to a distribution from the estate.
In Texas, there are some deadlines that distributees need to know. For simplicity’s sake, we will refer to an executor under the more generic term “administrator.” Just remember that there are several flavors of executors and administrators who come with various powers and restrictions.
Administrators have 90 days to file an inventory of the estate assets and claims. An accounting is automatically due in most estates at one year plus 60 days; for other estates it can be demanded at 15 months. Let the administrator do their job but keep those deadlines in mind.
If you are a distributee, do you need to hire an attorney? Maybe. Administrators have been known to delay, prevaricate, steal, self-deal and otherwise make a mess of things. Some administrators will even “require” that you release them from all claims, known or unknown, before they distribute your inheritance. You don’t have to sign a release, by the way.
A probate proceeding can mean playing against a stacked deck. If you have to go to court, you would be wise to be represented by an attorney.
The more money at stake, the more incentive for mischief. Just watch out for scams: You should not have to send money to get money.
Play nice with your relatives. You just never know ….
Attorney Virginia Hammerle will present “Wills and Trusts 101″ from 2 to 3 p.m. on Nov. 1 (F) at the Skillman Southwestern Branch Library, 5707 Skillman St., Dallas. Registration is required. To register, visit dallaslibrary2.org, click on Events, choose Skillman Southwestern Branch and click on “Trusts 101,” or call 214-670-6078.
Attorney Virginia Hammerle is board certified in civil trial law by the Texas Board of Legal Specialization and an accredited estate planner. To receive her monthly newsletter, contact her at legaltalktexas@hammerle.com or visit hammerle.com. This column does not constitute legal advice.
