Difference between revisions of "Know when to Reopen an Estate"
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Once an estate has been fully administered and closed, it generally stays that way. However, there are times when an estate must be reopened. For example, you may discover other estate assets. The amount, type, and form of ownership will determine if you can collect them without reopening the estate. In other situations, the appearance of a new creditor or new will requires the reopening of an estate. | Once an estate has been fully administered and closed, it generally stays that way. However, there are times when an estate must be reopened. For example, you may discover other estate assets. The amount, type, and form of ownership will determine if you can collect them without reopening the estate. In other situations, the appearance of a new creditor or new will requires the reopening of an estate. | ||
| − | [[Category:Wills and Testaments]] | + | [[Category: Wills and Testaments]] |
==Steps== | ==Steps== | ||
===Identifying Reasons to Reopen=== | ===Identifying Reasons to Reopen=== | ||
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#*If there was no will, then the heir could inherit under the state’s intestacy laws, which apply in the absence of a will. Analyze your state law. For example, in Texas, you can only reopen the estate if property was omitted from the will or not administered in probate.<ref name="rf6">http://www.statutes.legis.state.tx.us/Docs/ES/htm/ES.202.htm</ref> | #*If there was no will, then the heir could inherit under the state’s intestacy laws, which apply in the absence of a will. Analyze your state law. For example, in Texas, you can only reopen the estate if property was omitted from the will or not administered in probate.<ref name="rf6">http://www.statutes.legis.state.tx.us/Docs/ES/htm/ES.202.htm</ref> | ||
#*Look if the personal representative gave the heir notice of the probate proceedings. If not, then you may need to reopen the estate for further administration. However, if the heir did receive notice, they should have pressed their claim during the time prescribed. | #*Look if the personal representative gave the heir notice of the probate proceedings. If not, then you may need to reopen the estate for further administration. However, if the heir did receive notice, they should have pressed their claim during the time prescribed. | ||
| − | # Check if you need to reopen for litigation. Sometimes, an estate will bring a wrongful death lawsuit for the death of the deceased. Also, the estate might be sued for any wrongdoing committed by the deceased. In these situations, you may need to reopen the estate.< | + | # Check if you need to reopen for litigation. Sometimes, an estate will bring a wrongful death lawsuit for the death of the deceased. Also, the estate might be sued for any wrongdoing committed by the deceased. In these situations, you may need to reopen the estate.<ref>http://www.butlercountyprobatecourt.org/content/documents/Pckt_ReopenEstate.pdf</ref> |
# Consult with a probate attorney. If you ever have a question, you should meet with an experienced probate attorney. Every situation is different, and laws often vary by jurisdiction. Accordingly, only an attorney can analyze your specific situation and offer tailored advice. | # Consult with a probate attorney. If you ever have a question, you should meet with an experienced probate attorney. Every situation is different, and laws often vary by jurisdiction. Accordingly, only an attorney can analyze your specific situation and offer tailored advice. | ||
#*Find a probate attorney by contacting your local or state bar association and asking for a referral.<ref name="rf7">https://shop.americanbar.org/ebus/abagroups/divisionforbarservices/barassociationdirectories/statelocalbarassociations.aspx</ref> Once you have the name of someone, call them up and [[Prepare for a First Meeting with Your Lawyer|schedule a consultation]]. | #*Find a probate attorney by contacting your local or state bar association and asking for a referral.<ref name="rf7">https://shop.americanbar.org/ebus/abagroups/divisionforbarservices/barassociationdirectories/statelocalbarassociations.aspx</ref> Once you have the name of someone, call them up and [[Prepare for a First Meeting with Your Lawyer|schedule a consultation]]. | ||
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#*Typically, the prior personal representative can also petition to reopen the estate.<ref name="rf1" /> | #*Typically, the prior personal representative can also petition to reopen the estate.<ref name="rf1" /> | ||
# Complete a petition. Your probate court might have a printed, fill-in-the-blank petition form you can fill out.<ref name="rf1" /> Check with the probate court or look on their website. | # Complete a petition. Your probate court might have a printed, fill-in-the-blank petition form you can fill out.<ref name="rf1" /> Check with the probate court or look on their website. | ||
| − | #*If no form is available, you’ll need to draft your own petition. Your petition should provide background facts about the dispute and explain why the estate should be reopened.< | + | #*If no form is available, you’ll need to draft your own petition. Your petition should provide background facts about the dispute and explain why the estate should be reopened.<ref name="rf2" /> |
#*Court documents like petitions must look a certain way. Search online to find sample probate petitions. | #*Court documents like petitions must look a certain way. Search online to find sample probate petitions. | ||
#*Consult with an attorney if you find this difficult. | #*Consult with an attorney if you find this difficult. | ||
# File your petition. Make several copies, including one for your records. Take the original and copies to the probate court where the estate was initially administered. Ask to file. | # File your petition. Make several copies, including one for your records. Take the original and copies to the probate court where the estate was initially administered. Ask to file. | ||
#*You may also have to pay a filing fee.<ref name="rf1" /> Call the court ahead of time | #*You may also have to pay a filing fee.<ref name="rf1" /> Call the court ahead of time | ||
| − | # Serve notice. Depending on your court, you may need to serve a copy of the petition on all heirs who were listed in the original probate petition.< | + | # Serve notice. Depending on your court, you may need to serve a copy of the petition on all heirs who were listed in the original probate petition.<ref>http://www.lawhelp.org/files/7C92C43F-9283-A7E0-5931-E57134E903FB/attachments/F95E7263-63A4-465F-BFE8-AF110896CDE9/forms-for-reopening-an-estate.pdf</ref> You will also need to certify that you have served notice. Often, you can serve using a process server, who will fill out a certificate of service and return it to you. |
===Administering a Newly Reopened Estate=== | ===Administering a Newly Reopened Estate=== | ||
| − | # Distribute any newly discovered wills. If you’re named the personal representative after the estate has been reopened, then you must give all interested parties a copy of any newly discovered will. They will need to unanimously consent to the will, or the judge will hold a hearing to determine if the will is valid.< | + | # Distribute any newly discovered wills. If you’re named the personal representative after the estate has been reopened, then you must give all interested parties a copy of any newly discovered will. They will need to unanimously consent to the will, or the judge will hold a hearing to determine if the will is valid.<ref> http://www.wcpc.us/Info/FAQ/reopenestate.htm</ref> |
| − | # Identify the value of newly discovered assets. The personal representative is responsible for collecting and safekeeping all assets. Create an inventory of any recently discovered assets.< | + | # Identify the value of newly discovered assets. The personal representative is responsible for collecting and safekeeping all assets. Create an inventory of any recently discovered assets.<ref>http://www.co.muskegon.mi.us/probatecourt/faq.htm#reopen_estate</ref> |
#*If necessary, you may also need to have them appraised. | #*If necessary, you may also need to have them appraised. | ||
#*Generally, you’ll need to file an inventory of newly discovered assets with the court or give the inventory to all interested parties. | #*Generally, you’ll need to file an inventory of newly discovered assets with the court or give the inventory to all interested parties. | ||
| − | # Keep detailed records. Personal representatives must carefully account for all money and property collected and distributed. Even if the estate is small, keep accurate records. You may need to keep receipts of all expenses to share with the court or with interested parties.< | + | # Keep detailed records. Personal representatives must carefully account for all money and property collected and distributed. Even if the estate is small, keep accurate records. You may need to keep receipts of all expenses to share with the court or with interested parties.<ref name="rf5" /> |
#*Remember to consult with a lawyer or accountant with questions. The judge and court staff can’t provide legal advice. | #*Remember to consult with a lawyer or accountant with questions. The judge and court staff can’t provide legal advice. | ||
#*Usually, you can pay your lawyer or accountant out of estate assets, which makes getting professional help feasible. | #*Usually, you can pay your lawyer or accountant out of estate assets, which makes getting professional help feasible. | ||
# Distribute assets. In some states, you need court approval before you finally distribute assets to the beneficiaries.<ref name="rf9">http://www.americanbar.org/groups/real_property_trust_estate/resources/estate_planning/guidelines_for_individual_executors_trustees.html</ref> Remember that the estate may owe taxes, so you should hold back enough to cover them. | # Distribute assets. In some states, you need court approval before you finally distribute assets to the beneficiaries.<ref name="rf9">http://www.americanbar.org/groups/real_property_trust_estate/resources/estate_planning/guidelines_for_individual_executors_trustees.html</ref> Remember that the estate may owe taxes, so you should hold back enough to cover them. | ||
| − | #*Consult with an accountant if you have questions about taxes, because you may be held personally responsible for any unpaid amount.< | + | #*Consult with an accountant if you have questions about taxes, because you may be held personally responsible for any unpaid amount.<ref name="rf5" /> |
#*As the personal representative, you will also have to file the estate’s tax returns. | #*As the personal representative, you will also have to file the estate’s tax returns. | ||
| − | # Close the estate in a timely manner. Consult your state’s law. In Michigan, for example, you must close a reopened estate within one year.<ref name=" | + | # Close the estate in a timely manner. Consult your state’s law. In Michigan, for example, you must close a reopened estate within one year.<ref name="rf5" /> Remember to file required reports with the court. |
==Sources and Citations== | ==Sources and Citations== | ||
{{reflist}} | {{reflist}} | ||
{{WikiHow}} | {{WikiHow}} | ||
