Missing assets can be a headache for estate administrators.
Executors and estate administrators are responsible for accounting for all assets and liabilities before making distributions to heirs.
These estate representatives must inventory the assets after the death of the owner.
They often face challenges with undisclosed or missing assets.
Overlooked assets can include real estate holdings, investments, and bank accounts.
Identifying and accessing these assets is necessary to honor the decedent's wishes in probate proceedings.
Estate administrators must act as detectives to locate missing assets.
Poor organization and documentation by the decedent are common causes of missing assets.
To ensure a smooth estate settlement, you should update your assets as they are acquired or sold.
While forgetfulness is common, another likely reason for undisclosed assets is when owners have intentionally kept them hidden or private.
Additionally, digital accounts can be overlooked when there are no records.
This is common for online accounts or cryptocurrency.
Assets purchased under a different name, closed accounts, and outdated beneficiary designations are likely culprits.
Estate administrators must be diligent in their search for these missing assets.
A good place to start is with the documents of the decedent.
Estate administrators should gather and review insurance policies, bank statements, and tax returns.
Savings and investment accounts can be located by reviewing interest income, dividends, or recurring payments.
Other places to find evidence of missing assets are property tax bills, notices from financial institutions, investment firm statements, and correspondence through letters, mail, and emails.
These often give clues to other property owned by the decedent.
When personal documents fall short, public sources should be evaluated.
It is possible to find records of mortgages, deeds, and tax assessments at municipal or county offices to locate registered property or real estate unlisted in estate planning documents.
You can also review unclaimed property databases to uncover stocks, bank accounts, and uncashed checks.
Several states have these registries available for free.
Digital assets can be easily overlooked.
After gaining access to the decedent's phone, computer, email accounts, social media accounts, and cloud storage services, executors can gather information on online investment platforms, cryptocurrency, or digital wallets.
Ideally, the deceased would have provided written login credentials or access to password managers to the estate administrator as part of his or her digital asset planning.
Executors struggling to access these accounts may benefit from consulting with a cybersecurity expert or other tech-savvy professional.
Executors can contact the investment firms, credit unions, or banks where the decedent did business.
For these institutions to provide access to account information, estate administrators must provide letters testamentary or other proof of their role as the executor.
Financial institutions can give a complete list of active, inactive, or dormant accounts associated with the decedent.
People close to the deceased may have inside knowledge of accounts.
Professionals like accountants, financial planners, or attorneys may know whether the decedent has unlisted assets or financial obligations.
Friends or family members often have knowledge of property important to the decedent.
The search for lost property is often long and tedious.
Some assets require confirmation of ownership when entangled in legal disputes.
Organization and resilience are necessary qualities for successful executors.
When locating property goes beyond the skill and scope of an executor, the estate may be required to secure the services of a private investigator or forensics accountant.
Ultimately, executors must stay organized and persistent, keeping detailed records of their efforts.
Executors and estate administrators serve in fiduciary roles.
They must identify and protect all estate assets.
Failure in any of these duties can lead to beneficiary discord, legal liability, or probate delay.
Yikes!
Making a thorough search and detailing actions is key to settling the estate and protecting the estate administrator.
As the saying goes, "an ounce of prevention is worth a pound of cure."
The best way to prevent complications from undocumented assets is for the estate owner to be organized and detailed in their records and to regularly update their estate plans.
While alive, the estate owner should inventory and outline assets, account details, and passwords to provide to the estate executor.
Many estate planning attorneys have resources available to clients to track and document their property.
Estate administrators have a key role in protecting assets and preserving the decedent's legacy.
To fulfill their duties to the beneficiaries and the decedent, executors must be detailed in their accounting and methodical in their investigations.
Poor organization and documentation can prevent accounts and assets from being lost or forgotten.
Executors have the fiduciary responsibility to find and protect assets for distribution.
To locate assets, estate administrators should review public records and databases, personal records, and digital accounts.
Proactive estate planning with intentional organization is the best way to prevent missing assets.
This post is for informational purposes only and does not provide legal advice. You should contact an attorney for advice concerning any particular issue or problem. Nothing herein creates an attorney-client relationship between Harvest Law KC and the reader.
Reference: The Wall Street Journal (June 29, 2024) "Grief, Then Paperwork: The Messy, Thankless Job of an Estate Executor"
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